Chap. 225.—An ACT to amend and re-enact sections 36, 36-a, 74, 76, 98, 140, 171,
197, 253, 255, 267, 336 and 418 of the Tax Code of Virginia, which sections are
in chapter 6, 7, 9, 14, 18, 22 and 27 of the Tax Code of Virginia on the subjects
of income, intangible personal property, inheritance taxes, licenses, real estate
assessments, examiners of records, and omitted taxes; and also to repeal sec-
tion 328 of the Tax Code of Virginia requiring the commissioner of the revenue
to send department of taxation copy of recapitulation sheets of land book.

[H B 212]

Approved March 23, 1932

1. Beit enacted by the general assembly of Virginia, That sections
thirty-six, thirty-six-a, seventy-four, seventy-six, ninety-eight, one
hundred and forty, one hundred and seventy-one, one hundred and
ninety-seven, two hundred and fifty-three, two hundred and fifty-five,
two hundred and sixty-seven, three hundred and thirty-six, and four
hundred and eighteen of the Tax Code of Virginia be amended and re-
enacted so as to read as follows:

Section 36. Personal exemptions allowed individuals——The fol-
lowing exemptions shall be allowed to individuals reporting income as
required by this chapter:

In the case of an unmarried person, the personal exemption shall be
twelve hundred and fifty dollars; in the case of a husband and wife,
living together, and in the case of a widow or widower with a depend-
ent minor child or dependent minor children, the personal exemption
shall be twenty-eight hundred dollars. For each person other than the
husband or wife, or in the case of a widow or widower for each de-
pendent minor child in excess of one, dependent upon and entirely
supported by the taxpayer during the taxable year, the personal ex-
emption shall be four hundred dollars. A husband and wife living
together shall receive but one personal exemption of twenty-eight
hundred dollars against their aggregate income, if a joint return is
filed, but a husband and wife not living together shall make separate
returns, and a husband and wife, living together, but having separate
incomes may make separate returns. In all cases where separate re-
turns are made by the husband and wife the personal exemption
allowed upon each shall be fourteen hundred dollars. If husband and
wife living together elect to file separate returns, each is required to
file a return if his or her gross income, as the case may be, amounted
to fourteen hundred dollars or more for the taxable year.

This section, as hereby amended, shall be in force for the taxable
year nineteen hundred and thirty-two, and for every taxable year there-
after until otherwise provided by law.

Section 36-a. Further as to personal exemptions allowed indi-
viduals.—A taxpayer who has had dependent upon him and who has
entirely supported during the taxable year a person bearing the rela-
tionship to the taxpayer of:father or mother, son or daughter, or sister
or brother, shall be allowed a personal exemption of twenty-eight hun-
dred dollars. For each person in excess of one dependent upon and
entirely supported by the taxpayer during the taxable year, the per-
sonal exemption shall be increased four hundred dollars. But this
section shall not apply to any taxpayer who is given the personal ex-
emption of twenty-eight hundred dollars by section thirty-six of the
Tax Code of Virginia.

This section, as hereby amended, shall be in force for the taxable
year nineteen hundred and thirty-two, and for every taxable year there-
after until otherwise provided by law.

Section 74. Nonresidents; taxation of capital acquiring business
situs—Every nonresident person, every foreign corporation, and every
partnership consisting in whole or in part of nonresident persons, doing
business in this State is hereby declared to have a business domicile
within this State and so much of the capital of any such person, firm
or corporation as may have acquired or may hereafter acquire a busi-
ness situs within this State shall be reported by and taxed to such per-
son, firm or corporation in the same manner and to the same extent as
if such person, firm or corporation were a resident, or composed en-
tirely of resident individuals, or a domestic corporation, as the case
may be.

This section, as hereby amended, shall be in force for the tax year
nineteen hundred and thirty-two, and for every tax year thereafter
until otherwise provided by law.

Section 76. Branches outside of the State; taxation of capital.—
Where any person, firm or corporation domiciled and doing business
in this State maintains a branch of such business outside of this State,
no part of the capital of such person, firm or corporation having ac-
quired a business situs at any such branch outside of this State shall be
considered as situated in this State for the purpose of taxation or be
assessed with taxes in this State.

This section, as hereby amended, shall be in force for the tax year
nineteen hundred and thirty-two, and for every tax year thereafter until
otherwise provided by law.

Section 98. Inheritance taxes; classification of beneficiaries;
exemptions; rates of tax.—State inheritance taxes, as hereinafter pre-
scribed, are hereby levied upon the shares of the respective beneficiaries
in all property within the jurisdiction of this Commonwealth, real,
personal and mixed, and any interest therein, which shall pass:

(a) By will, or by the laws regulating descents and distributions ;

(b) By grant or gift made or intended to take effect in possession
or enjoyment at or after the death of the grantor or donor;

(c) By grant or gift made in contemplation of death;

(d) By a transfer under which the transferrer has retained for
his life the possession or enjoyment of the property, or the income
therefrom, or the right to designate or change the beneficiaries who
shall be entitled to possess or enjoy the property or the income there-
from;

(e) By virtue of the fact that it is held by the decedent and
another as joint tenants with the right of survivorship under the provi-
sions of section fifty-one hundred and sixty of the Code of Virginia,
or is deposited with any person, firm, or corporation doing a banking
business, in their joint names and payable to either or the survivor,
except such part thereof as may be shown to have originally belonged
to such other person and never to have been received or acquired by
the latter from the decedent for less than an adequate and full con-
sideration in money or money’s worth; provided, that where such
property or any part thereof or any part of the consideration with
which such property was acquired, is shown to have been at any time
acquired by such other person from the decedent for less than an
adequate and full consideration in money or money’s worth, there
shall be excepted only such part of the value of such property as is
proportionate to the consideration furnished by such other person.

Every grant or gift made within one year next preceding the date
of the death of the grantor or donor, shall be deemed prima facie to
have been made in contemplation of death.

For the purposes of this chapter, the classification of beneficiaries,
their exemptions and the rates of taxation, shall be as follows:

The father, mother, grandfathers, grandmothers, husband, wife,
children by blood or by legal adoption, grandchildren, and all other
lineal ancestors and lineal descendants of the decedent shall constitute
class A;

So much of such property as has the actual value of ten thousand
dollars and so passes to or for the use of any class A beneficiary shall
be exempt from taxation hereunder;

So much of such property as shall so pass to or for the use of a
class A beneficiary shall be subject to a tax of one per centum of the
actual value of so much thereof as is in excess of ten thousand dollars
and is not in excess of fifty thousand dollars, to a tax of two per centum
upon so much thereof as is in excess of fifty thousand dollars and is
not in excess of one hundred thousand dollars, to a tax of three per
centum upon so much thereof as is in excess of one hundred thousand
dollars and is not in excess of five hundred thousand dollars, and to a
tax of four per centum upon so much thereof as is in excess of five
hundred thousand dollars and is not in excess of one million dollars,
and to a tax of five per centum upon all in excess of one million dollars ;

The brothers, sisters, nephews and nieces of the whole or half
blood of the decedent shall constitute class B;

So much of such property as has the actual value of four thousand
dollars and so passes to or for the use of any class B beneficiary shall
be exempt from taxation hereunder ;

So much of such property as shall so pass to or for the use of a
class B beneficiary shall be subject to a tax of two per centum of the
actual value of so much thereof as is in excess of four thousand dollars
and is not in excess of twenty-five thousand dollars, to a tax of four
per centum upon so much thereof as is in excess of twenty-five thou-
sand dollars and is not in excess of fifty thousand dollars, to a tax of
six per centum upon so much thereof as is in excess of fifty thousand
dollars and is not in excess of one hundred thousand dollars, to a tax
of eight per centum upon so much thereof as is in excess of one hundred
thousand dollars and is not in excess of five hundred thousand dollars,
and to a tax of ten per centum upon all in excess of five hundred thou-
sand dollars;

Grand-nephews and grand-nieces of the decedent and all persons
other than members of classes A and B and all firms, institutions, as-
sociations, and corporations shall constitute class C;

So much of such property as has the actual value of one thousand
dollars and so passes to or for the use of any class C beneficiary shall
be exempt from taxation hereunder; ,

So much of such property as shall so pass to or for the use of a
class C beneficiary shall be subject to a tax of five per centum of the
actual value of so much thereof as is in excess of one thousand dollars
and is not in excess of twenty-five thousand dollars, to a tax of seven
per centum upon so much thereof as is in excess of twenty-five thou-
sand dollars and is not in excess of fifty thousand dollars, to a tax of
nine per centum upon so much thereof as is in excess of fifty thousand
dollars and is not in excess of one hundred thousand dollars to a tax
of twelve per centum upon so much thereof as is in excess of one
hundred thousand dollars and is not in excess of five hundred thousand
dollars, and to a tax of fifteen per centum upon all in excess of five
hundred thousand dollars;

It is expressly provided, however, that so much of such property
as shall so pass exclusively for State, county or municipal purposes,
within this State, or for charitable, educational or religious purposes
within this State, and so much of such property as shall so pass for the
exclusive benefit of any institution, association, or corporation in this
State, the property of which is exempt from taxation by the laws of
this State, shall be exempt from any and all taxation under the provi-
sions of this chapter.

The tax aforesaid shall be determined upon the aggregate actual
value at the time of the death of the decedent of all property within
the jurisdiction of the Commonwealth, as aforesaid, which shall so
pass from the decedent to each beneficiary by any number or all of
such methods of transmission ;

Where any class A, class B or class C beneficiary has died or may
hereafter die within one year after the death of the decedent and
before coming into the possession and enjoyment of any property
passing to him, and before selling, assigning, transferring or in any
manner contracting with respect to his interest in such property, and the
tax on the property so passing to said beneficiary has not been paid,
then such property shall be taxed only once and the tax shall be assessed
on the property received from such share by each beneficiary thereof,
finally entitled to the possession and enjoyment thereof, as if he had
been the original beneficiary, and the exemptions and rates of taxation
shall be governed by the respective relationship of each of the ultimate
beneficiaries to the first decedent.

This section as hereby amended is declaratory of the existing law
except paragraph (e), and except that the last paragraph of the section
as it existed prior to this amendment is omitted and thereby repealed.

Section 140. How license assignable.-—A license other than to
authorize the conduct of a profession may be assigned to any person
to whom it might have been originally granted, and in the event of the
death of the licensee, the license may be assigned by his personal rep-
resentative in like manner, and with the like effect as might have been
done by the licensee himself. If the license was obtained, or had its
validity by reason of a certificate of any court, or of any oath or bond,
the assignment shall not be valid without a like certificate in favor of
the assignee, and a like oath or bond by the assignee, as was required
for the original grant; and when assigned shall be a personal privilege
to the assignee, and shall not be exercised by any person other than
the assignee, unless otherwise authorized by law. If the license tax
already paid by the assignor is less than the license tax which would
be assessable against the assignee but for the assignment, an additional
license tax shall be paid by the assignee equal to the difference between
the tax paid on the assigned license and the license tax which would be
otherwise assessable against the assignee. |

Section 171. Brokers.—Brokers engaged in dealing in options or
futures——Any person, firm, or corporation engaged in buying and
selling, or who receives orders to buy or sell, cotton, grain, provisions,
or other commodities, shall be deemed to be a broker dealing in options
and futures. Every broker dealing in options or futures or in buying
or selling options or futures shall pay the sum of two hundred dollars
for the privilege of transacting such business.

This section, as hereby amended, shall be in force for the license
year beginning January first, nineteen hundred and thirty-three, and
for every license year thereafter until otherwise provided by law.

Section 197. Restaurants——Any person who shall cook, or other-
wise furnish for compensation, diet or refreshments of any kind, for
casual visitors at his house, for consumption therein, and who does
not furnish lodging, and who is not the keeper of a hotel or lodging
house, shall be deemed to keep a restaurant. Any person who shall
sell soft drinks from a soda fountain shall also be deemed to keep a
restaurant.

Every person who shall keep a restaurant within the meaning of
this section if located in a town or city of more than five thousand
population shall pay for the privilege an annual State license tax of ten
dollars and if located in a county or in a city or town of less than five
thousand population an annual State license of five dollars, plus an ad-
ditional tax in each case at the rate of twenty cents per one hundred
dollars on all purchases made by him during the next preceding year.
The State license tax on everv restaurant-keeper beginning business, if
located in a town or city of more than five thousand population shall
be ten dollars, or if located in a county or in a town or city of less
than five thousand population five dollars, plus an additional tax in
each case at the rate of twenty cents per one hundred dollars on all
purchases which it is estimated he will make from the time he com-
mences business to the following December thirty-first. The word
“purchases,” as used in this section, shall be construed to mean all
goods, wares, merchandise, products, and material bought for the
purpose of sale, whether in the form in which the same are bought,
or in a changed form, or for the purpose of preparing food or bever-
ages for sale, in such restaurant and/or soft drink business. The word
“purchases, ” as used in this section, shall not be construed to include
equipment or capital outlays. Every restaurant-keeper shall keep ac-
curate records of all purchases and from whom made, which records
shall at all times be open to inspection by the tax officers of this State.
Nothing in this section shall be construed as in any way affecting the
Sunday observance laws of this State.

This section, as hereby amended, shall be in force for the license
years beginning January first, nineteen hundred and thirty-three, and
for every license year thereafter until otherwise provided by law.

Section 253. Form of land book.—The department of taxation shall
prescribe the form of the land book to be used by the commissioner
of the revenue, and shall furnish each commissioner of the revenue
with four copies of blank land books prepared in the form so prescribed.

The land books shall be so arranged that real estate owned by
white persons shall be assessed in one part of the book, and the real
estate owned by colored persons shall be assessed in another part of
the book.

Tracts of lands in counties shall be entered by magisterial or school
districts, and town lots shall be entered upon sheets provided in the
land book for that purpose.

The land book on which levies are to be assessed on city lots shall
be prepared so that lots owned by white persons and lots owned by
colored persons will be assessed separately.

Whenever a tract of land has been subdivided into lots under the
provisions of sections fifty-two hundred and seventeen, and fifty-two
hundred and eighteen of the Code, or under any other provision of
general law, and plats thereof have been recorded, each lot in such sub-
division shall be assessed and shown separately upon the books.

When the surface of the land is owned by one person and the stand-
ing timber trees thereon are owned by another, the relative value of
each shall be determined and the several owners assessed with the value
of their respective interests.

When the surface and standing timber trees are owned by the same
person, the value of the land, inclusive of the standing timber trees,
shall be ascertained and assessed at such ascertained value.

Nothing in this section shall be construed to prohibit any commis-
sioner of the revenue of any city from using a land book in the form
prescribed and furnished by or under the authority of the council of his
city and at the cost of his city, provided such form contains the re-
quirements that lots owned by white persons and lots owned by colored
persons shall be assessed separately.
Section 255. Commissioner of the revenue to retain original land
book; disposition of copies—Each commissioner of the revenue shall
retain in his office the original land book. Each commissioner of the
revenue shall deliver to the treasurer of his county or city, and to the
department of taxation, one copy each of the land book. Each com-
missioner of the revenue for a county shall file a copy of the land book
in the office of the clerk of the circuit court of his county, and each
commissioner of the revenue for a city shall file such copy in the office
of the clerk of the court of the city in which deeds are admitted to
record. Such clerks shall preserve such copies in their offices. For
failure to deliver said copies in the manner herein provided by the
first day of September of each year, the commissioner of the revenue
shall be fined not less than fifty nor more than two hundred dollars.

Section 267. Clerks to make out annually lists of deeds; what
lists to contain.—The clerk of every court in which deeds are admitted
to record, shall annually, before the fifteenth of January, make out a
list of all deeds for the partition and conveyance of land, other than
deeds of trust and mortgages, made to secure the payment of debts,
which have been admitted to record in the clerk’s office of such court
within the year ending on the thirty-first day of December next preced-
ing, which list shall state the date of the deed, when admitted to record,
the name of grantor and grantee, whether the grantee is white or
colored, if known, the quantity of land conveyed, the specified value
thereof, and a description of the same. This list shall, on or before
the fifteenth day of January, be delivered by the clerk to the com-
missioner for his county or city, and the clerk shall also forward a
copy of said list to the department of taxation; and the said clerk
shall also make out, on a separate sheet a list of all deeds of trust and
mortgages on land, as well as deeds of trust on personal property made
to secure the payment of debts, which have been admitted to record in
the clerk’s office of such court within the year ending on the thirty-
first day of December next preceding, and such a list shall state the
date of the deed of trust or mortgage, when admitted to record, the
name of the grantor, the names of the creditors, where the name of
such creditors are disclosed and set forth in the deed of trust or mort-
gage, and the amount of the debt to each creditor secured by the deed
of trust, or to the mortgagee in the mortgage, and the amount of debt
secured thereby and the property conveyed in such deed of trust or
mortgage. Copies of this last-mentioned list shall be furnished by said
clerk on or before the fifteenth day of January to the commissioner of
the revenue for his county or city, and to the department of taxation.

Section 336. Fiduciaries distributing the corpus of estates or
trusts consisting of intangible personal property to file informative tax
returns.—E very fiduciary paying or distributing to or among one or
more beneficiaries any part or the whole of the corpus of an estate or
trust consisting of intangible personal property, shall file upon a form
prepared by the department of taxation an informative return of such
distribution, showing the names and residences of the distributees, the
amounts and classes of such property distributed to each and the date
or dates of such distribution. Such returns shall be filed with the
examiner of records having jurisdiction in the county or city in which
the fiduciary qualified, or if there has been no qualification in this
State, in the county or city in which such fiduciary resides, does busi-
ness, or has an office, or wherein the distributees or any of them reside.
Every such return shall be filed on or before the first day of June of
the calendar year following the calendar year in which the distribu-
tion.was made. ,

Section 418. Omitted State taxes on intangible personal property,
incomes and licenses——If any person, firm or corporation shall have
hitherto failed or shall hereafter fail for any tax year of the three tax
years last past, to make a proper return of his, their or its intangible
personal property or income, or to have the same assessed for taxation,
or to pay the proper taxes thereon within the time required by law, or
to pay a proper State license tax, the department of taxation, through
its examiners of records or other officers or agents. shall ascertain the
amount of such intangible personal property, income or license which
should have been assessed, and shall assess the taxes prescribed by law
thereon for the year or years so omitted, adding to the taxes so assessed
the penalty prescribed by law, if any, for the failure to file a return
(if a return was required by law, but not filed within the time pre-
scribed by law) and the penalty or penalties prescribed by law for the
failure to pay the taxes and penalty or penalties within the time pre-
scribed by law, and in addition thereto, interest at the rate of six
per centum per annum on such taxes and penalty or penalties from the
time the same should have been paid until the date of such assessment.
Upon such assessment, the department of taxation shall send a bill
therefor to the taxpayer and give advice thereof to the comptroller ;
and the taxes, penalties and interest shall be paid into the State treas-
ury within thirty days from the date of such bill. If such taxes,
penalties and interest be not paid within such thirty days, interest at
the rate of six per centum per annum shall accrue thereon from the date
of such assessment until payment.

If any person, firm or corporation shall hereafter fraudulently, or
with a view to evade the payment of proper taxes, fail or refuse to
secure a proper license, whenever a license is required by law, or to
make out and deliver to the proper assessing authority a list of his, their
or its intangible personal property, or income, or with like intent, list
the same at less than its true value, then such property or income when
discovered, or such license when the liability therefor 1s ascertained,
shall be listed and assessed for taxation for the proper amount for
each and every year of the six tax years last past when it was not so
assessed, with additional penalty of one hundred per centum of such
unpaid taxes, and the failure to secure such license or to make out a
return of income or any class of intangible personal property, as re-
quired by law, or the listing of such intangible personal property or
income at fifty per centum or less of its actual value, shall be taken as
prima facie evidence of intention so to evade the taxes.

2. That section three hundred and twenty-eight of the Tax Code
of Virginia be and the same is hereby repealed.