Chap. 136.—An ACT to amend the Code of Virginia by adding to chapter 133
thereof a new section numbered 3424-a, providing in what courts disbarment
and suspension proceedings against attorneys at law may be had and how
services may be had. [H B 164]

Approved March 16, 1934

I. Be it enacted by the General Assembly of Virginia, That the
Code of Virginia be amended by adding to chapter one hundred and
thirty-three thereof a new section numbered thirty-four hundred and
twenty-four-a, which new section shall read as follows:

Section 3424-a. Disbarment or suspension proceedings against any
attorney at law may be had in any court of record in the county or
city wherein the defendant resides or has his office or place of practice
when the proceeding is commenced, or resided or had such place of
practice when any misconduct complained of occurred, or in which
any case was pending as to which any case as to which any misconduct
took place. If personal service cannot be had upon the defendant,
proceedings may be had by order of publication on proper affidavit.

The provisions of this section shall not be construed to lessen the
existing jurisdiction of any court in such matters.
Chap. 137——-An ACT to amend and re-enact sections 31, 36, 36a, 41, 44, and 51
of the Tax Code of Virginia, as heretofore amended, in relation to income
taxes; to amend and re-enact section 82 of the Tax Code of Virginia as to
the time for filing returns of intangible personal property; to amend and re-
enact section 98 of the Tax Code of Virginia, as heretofore amended, in re-
lation to inheritance taxes; to amend the Tax Code of Virginia by adding
thereto a new chapter to be designated chapter 9a and to contain new sections
to be numbered 120-1 to 120-15, both inclusive, to levy and provide for the
collection of gift taxes; to amend and re-enact section 188 of the Tax Code
of Virginia, as heretofore amended, in relation to the taxation of merchants;
to appropriate certain moneys for the administration of the merchants’ license
laws; to repeal section 188a of the Tax Code of Virginia, in relation to the
taxation of merchants; to amend and re-enact section 216 of the Tax Code of
Virginia, in relation to the taxation of railway and canal corporations; to
amend the Tax Code of Virginia by adding thereto a new section to be
numbered 216a, to provide for the assessment and taxation of pipe line trans-
portation companies; to amend and re-enact sections 223 and 224 of the Tax
Code of Virginia, in relation to the taxation of sleeping car, parlor car, and
dining car companies; to amend and re-enact section 227 of the Tax Code of
Virginia, in relation to the taxation of telegraph and telephone companies and
persons and firms operating the apparatus necessary to communicate by tele-
graph or telephone; to amend and re-enact sections 228 and 229 of the Tax
Code of Virginia, in relation to the taxation of water, heat, light and power
companies; and to make an appropriation in aid of the public free schools.
[H B 205]

Approved March 16, 1934

1. Be it enacted by the General Assembly of Virginia, That sections
thirty-one, thirty-six, thirty-six-a, forty-one, forty-four, fifty-one,
eighty-two, ninety-eight, one hundred and eighty-eight, two hundred
and sixteen, two hundred and twenty-three, two hundred and twenty-
four, two hundred and twenty-seven, two hundred and twenty-eight,
and two hundred and twenty-nine of the Tax Code of Virginia, as here-
tofore amended, be further amended; that a new chapter designated
chapter nine-a and containing new sections numbered one hundred and
twenty, dash one to one hundred and twenty, dash fifteen, both inclusive,
be added to the Tax Code of Virginia, and that a new section numbered
two hundred and sixteen-a be added to the Tax Code of Virginia, which
amended sections and new sections shall read as follows:

Section 31. Information returns.—Every corporation subject to the
jurisdiction of this State shall, when required by the Department of
Taxation, render a correct return, duly verified under oath, of its pay-
ments of dividends to residents of this State, stating the name and
address of each shareholder, the number of shares owned by him, and
the amount of dividends paid to him.

Every person, firm and corporation, subject to the jurisdiction of this
State, in whatever capacity acting, including lessees or mortgagors of
real or personal property, fiduciaries, and employers, making payment
to another person, firm or corporation, of interest, rent, salaries, wages,
premiums, annuities, compensations, remunerations, emoluments, or
other fixed or determinable gains, profits, and income (other than pay-
ments, described in the next preceding paragraph), of one thousand
dollars or more in any taxable year, or, in the case of such payments
made by the Commonwealth of Virginia and its political subdivisions,

the officers or employees of this State or of its political subdivisions
having information as to such payments and required to make returns
in regard thereto by the regulations hereinafter provided for, shall
render a true and accurate return to the Department of Taxation, under
such regulations and in such form and manner and to such extent as
may be prescribed by it, setting forth the amount of such gains, profits,
and income, and the name and address of the recipient of such payment.
Such returns may be required, regardless of amounts, in the case of
payments of interest upon bonds, mortgages, deeds of trust, or other
similar obligations of corporations. When necessary to make effective
the provisions of this section the name and address of the re-
cipient of the income shall be furnished upon demand of the per-
son paying the income. The provisions of this section shall not
apply to the payment of interest on obligations of the United States or
of this State; nor shall the provisions of this section be so construed
as to require such information return as to the recipient of any such
payment as is hereinbefore described, where such recipient is not sub-
ject to taxation under the income laws of this State.

Corporations and partnerships required to file annual information
returns shall file the same on or before April fifteenth of each year,
and individuals required to file annual information returns shall file
the same on or before June first of each year. In all cases such annual in-
formation returns shall give such information for the calendar year
next preceding the calendar year in which they are required by this
chapter to be filed.

This section, as hereby amended, shall be in force for the tax year
nineteen hundred and thirty-four upon income received or due but not
received during the taxable year nineteen hundred and thirty-three and
for every tax and taxable year thereafter until otherwise provided by
law ; ‘provided, however, that for the taxable year nineteen hundred and
thirty-six and every taxable year thereafter until otherwise provided by
law, the words “one thousand dollars” as used in the second paragraph
of this section shall be twelve hundred and fifty dollars.

Section 36. Personal exemptions allowed individuals——The following
exemptions shall be allowed to individuals reporting income as re-
quired by this chapter.

In the case of an unmarried person, the personal exemption shall be
one thousand dollars; in the case of a husband and wife, living together,
and in the case of a widow or widower with a dependent minor child
or dependent minor children, the personal exemption shall be two thou-
sand dollars. For each person other than the husband or wife, or in the
case of a widow or widower for each dependent minor child in excess
of one, dependent upon and entirely supported by the taxpayer during
the taxable year, the personal exemption shall be two hundred dollars.
A husband and wife living together shall receive but one personal ex-
emption of two thousand 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 hav-
ing separate incomes may make separate returns. In all cases where
separate returns are made by the husband and wife the personal ex-
emption allowed upon each shall be one thousand 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 one thousand dollars or more for the taxable year.

Where a taxpayer is taxable as a non-resident the exemptions al-
lowed under this chapter shall be reduced to amounts which bear the
same ratio to the full exemptions provided for herein as the income
returnable under this chapter bears to the gross income of the taxpayer
for the entire taxable year.

This section, as hereby amended, shall be in force for the tax year
nineteen hundred and thirty-four upon income received or due but not
received during the taxable year nineteen hundred and thirty-three and
for every tax and taxable year thereafter until otherwise provided by
law ; provided, however, that for the taxable year nineteen hundred and
thirty-six and every taxable year thereafter until otherwise provided
by law, the words, “twelve hundred and fifty dollars’ shall be sub-
stituted for the words “one thousand dollars” wherever used in this
section, except as used in the last and next to the last sentences of the
second paragraph of this section, in which cases the words ‘fourteen
hundred dollars” shall be substituted for the words ‘“‘one thousand dol-
lars” and the words “twenty-eight hundred dollars” shall be substituted
for the words “two thousand dollars’ wherever used in this section, and
the words “four hundred dollars” shall be substituted for the words
“two hundred dollars” wherever used in this section.

Section 36-a. Further as to personal exemptions allowed individ-
uals.—A taxpayer who has had dependent upon him and who has en-
tirely supported during the taxable year a person bearing the relation-
ship to the taxpayer of father or mother, son or daughter, or sister or
brother, shall be allowed a personal exemption of two thousand dollars.
For each person in excess of one dependent upon and entirely supported
by the taxpayer during the taxable year, the personal exemption shall
be increased two hundred dollars. But this section shall not apply to
any taxpayer who is given the personal exemption of two thousand
dollars by section thirty-six of the Tax Code of Virginia.

This section, as hereby amended, shall be in force for the tax year
nineteen hundred and thirty-four upon income received or due but not
received during the taxable year nineteen hundred and thirty-three and
for every tax and taxable year thereafter until otherwise provided by
law; provided, however, that for the taxable year nineteen hundred
and thirty-six and every taxable year thereafter until otherwise provided
by law, the words “twenty-eight hundred dollars” shall be substituted
for the words “two thousand dollars’ wherever used in this section,
and the words “four hundred dollars” shall be substituted for the words
“two hundred dollars” wherever used in this section.

Section 41. Who must file individual income tax returns and
where.—Every individual having a gross income for the taxable year
of one thousand dollars or over, if unmarried, or if married and not
living with husband or wife, and every individual having a gross income
for the taxable year of two thousand dollars or over, if married and
living with husband or wife, and every widow or widower with a de-
pendent minor child or dependent minor children having a gross income
for the taxable year of two thousand dollars or over, shall make under
oath a return stating specifically the items of his entire income and the
items which he claims as deductions and exemptions allowed by this
chapter.

Every resident individual who is required by this chapter to file a
return shall file his return with the commissioner of the revenue for the
county or city in which he resides, and every non-resident individual
who is required by this chapter to file a return shall file his return with
the commissioner of the revenue for the county or city in which all
or a part of his income from sources within this State was derived. If
the individual is unable to make his own return, the return shall be
made by a duly authorized agent.

This section, as hereby amended, shall be in force for the tax year
nineteen hundred and thirty-four upon income received or due but not
received during the taxable year nineteen hundred and thirty-three
and for every tax and taxable year thereafter until otherwise provided
by law; provided, however, that for the taxable year nineteen hundred
and thirty-six and every taxable year thereafter until otherwise pro-
vided by law, the words “twelve hundred and fifty dollars’ shall be
substituted for the words “one thousand dollars’ wherever used in this
section, and the words “twenty-eight hundred dollars” shall be substi-
tuted for the words “two thousand dollars” wherever used in this sec-
tion.

Section 44. Time for the filing of individual income tax returns.—
All returns of individual income shall be made on or before the first
day of June in each year, except that such returns, if made on the basis
of a fiscal year, shall be made on or before the fifteenth day of the
fourth month following the close of such fiscal year; provided, that for
the taxable year nineteen hundred and thirty-three, no individual shall
be required to file a return before July first, nineteen hundred and thirty-
four.

Section 51. Fiduciary returns.—Every fiduciary (except receivers
appointed by authority of law in possession of part only of the property
of a taxpayer) shall make under oath a return for the person or estate
or trust for whom or for which he acts, as follows:

First. If he acts for a living person whose entire income from what-
ever source derived is in his charge and the net income of such individ-
ual is one thousand dollars or over if single, or if married and not
living with husband or wife, or two thousand dollars or over if mar-
ried and living with husband or wife, or if a widow or widower with a
dependent minor child or dependent minor children.

Second. If he acts (a) for an estate of a deceased person during
the period of administration or settlement, whether or not the income
of such estate during such period of administration or settlement is
properly paid or credited to any legatee, heir or other beneficiary; (b)
for an estate or trust the income of which is accumulated in trust for
the benefit of unborn or unascertained persons, or persons with con-
tingent interests; or (c) for an estate or trust the income of which
is held for future distribution or is distributable in the discretion of
the fiduciary under the terms of the will or trust; and the net income
of such estate or trust is one thousand dollars or over.

Third. If he acts (a) for an estate or trust the income of which is
to be distributed to the beneficiaries periodically ; or (b) as the guardian
of an infant whose income is to be held or distributed as the court may
direct ; and any beneficiary of such estate or trust receives or is entitled
to a distributive share of the income of the estate or trust of one
thousand dollars or more. The return made by a fiduciary shall state
specifically the items of the gross income and the deductions and ex-
emptions allowed by this chapter. Under such regulations as the De-
partment of Taxation may prescribe, a return made by one of two or
more joint fiduciaries shall be a sufficient compliance with the above
requirements. The fiduciary shall make oath that he has sufficient
knowledge of the affairs of the individual, estate or trust for whom or
which he acts to enable him to make the return, and that the same is,
to the best of his knowledge and belief, true and correct.

Fiduciaries required to make returns under this chapter, shall be
subject to all the provisions of this chapter which apply to other tax-
payers, except that every fiduciary who is required by this chapter to
file a return shall file such return 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 business, or has an office, or
wherein the beneficiary or any of them may reside. Fiduciary returns
shall be filed within the time required by this chapter for the filing of
individual returns, and for failure to file returns in time, fiduciaries
shall be subject to the same penalties as individuals.

Each examiner of records receiving returns shall make a report
thereof to the commissioner of the revenue for the county or city in
which the taxes are properly assessable, the forms of which report
shall be prescribed by the Department of Taxation, and such com-
missioner of the revenue shall assess the taxes upon his income book.
The reports aforesaid shall be filed by the examiner of records with
the commissioner of the revenue on or before June first of each year.
For good cause shown, the Department of Taxation may extend the
time for the filing of such reports by examiners of records.

The provisions of section forty-six hereof shall be applicable to
all fiduciary returns of income, except that such returns shall be for-
warded to the Department of Taxation by each examiner of records as
soon as he files his report based thereon with the commissioner of the
revenue.

This section, as hereby amended, shall be in force for the tax year
nineteen hundred and thirty-four upon income received or due but not
received during the taxable year nineteen hundred and thirty-three
and for every tax and taxable year thereafter until otherwise provided

yy law; provided, however, that for the taxable year nineteen hundred
ind thirty-six and every taxable year thereafter until otherwise provided
by law, the words “twelve hundred and fifty dollars” shall be substituted
‘or the words “one thousand dollars” wherever used in this section,
ind the words “twenty-eight hundred dollars” shall be substituted for
the words “two thousand dollars” wherever used in this section.

Section 82. Time for the filing of returns of intangible personal
property.—All returns of intangible personal property shall be made
on or before the first day of June in each year; provided, that for the
year nineteen hundred and thirty-four, no taxpayer shall be required to
fle a return before July first.

Section 98. Inheritance taxes; classification of beneficiaries ; exemp-
tion: rates of tax.—State inheritance taxes as hereinafter prescribed,
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 atransfer 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 en-
titled to possess or enjoy the property or the income therefrom ;

(e) By virtue of the fact that it is held by the decedent and an-
other as joint tenants with the right of supervisorship under the pro-
visions 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 consideration
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 consid-
eration in money or money’s worth, there shall be excepted only such
part of the value of such property as is proportionate to the considera-
tion 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 tc
have been made in contemplation of death.

For the purpose 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, chil.
dren by blood or by legal adoption, grand-children, and all other linea
ancestors and lineal descendants of the decedent shall constitute clas:

A}

So much of such property as has the actual value of five 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 five 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 two 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 two 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 thousand
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 dol-
lars 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
thousand 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 thousand
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 dol-
lars 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
is shall so pass exclusively for State, county or municipal purposes,
vithin this State, or for charitable, educational or religious purposes
within this State, and so much of such property as shall so pass for
he exclusive benefit of any institution, association, or corporation in
his 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 pro-
visions 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 con-
tracting 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 benefici-
aries to the first decedent.

The provisions of this section, as hereby amended, shall apply to
the estate of every person who shall die after this section, as hereby
amended, takes effect, and to all estates created by will which shall vest
in interest on or after said date; and the provisions of this section shall
apply to all estates of deceased persons which shall come into possession
of beneficiaries by the exercise or relinquishment of powers after this
section takes effect; provided, however, that the words “ten thousanc
dollars” shall be substituted for the words “five thousand dollars’
wherever used in this section, and the words “four thousand dollars’
shall be substituted for the words “two thousand dollars” whereves
used in this section, in the case of the estate of every person who shal
die after December thirty-first, nineteen hundred and thirty-six, anc
in the case of all estates created by will which shall vest in interes
after the said December thirty-first, nineteen hundred and thirty-six
and in the case of all estates of deceased persons which shall come int
possession of beneficiaries by the exercise or relinquishment of power
after the said December thirty-first, nineteen hundred and thirty-six.

Section 120-1. Gift taxes; classification of beneficiaries ; exemptions
rates of tax.—State gift taxes, as hereinafter prescribed, are hereb
levied upon the shares of the respective beneficiaries in all propert
within the jurisdiction of this Commonwealth, real, personal and mixed
and any interest therein, which shall in any one calendar year pass b.
gift made after the effective date of this act.
The taxes shall apply whether the gift is in trust or otherwise anc
whether the gift is direct or indirect. In the case of a gift made by.a
nonresident, the taxes shall apply only if the property is within the
jurisdiction of this State. The taxes shall not apply to gifts made prior
to the effective date of this act.

The tax shall not apply to the passage of property in trust where the
power to revest in the donor title to such property is vested in the
donor, either alone or in conjunction with any person not having a
substantial adverse interest in the disposition of such property or the
income therefrom, but the relinquishment or termination of such power
(other than by the donor’s death) shall be considered to be a passage
from the donor by gift of the property subject to such power, and
any payment of the income therefrom to a beneficiary other than the
donor shall be considered to be a passage by donor of such income by

ift.
. 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, grand-children, and all other
lineal ancestors and lineal descendants of the donor shall constitute
class A;

So much of such property as has the actual value of five 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 five 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 thou-
sand 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 dol-
lars, 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 donor shall constitute class B;

So much of such property as has the actual value of two 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 two 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 thousand
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 dol-

lars 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 donor and all persons other
than members of classes A and B and all firms, institutions, associa-
tions, 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 thousand
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 dol-
lars 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 pro-
visions of this chapter.

Section 120-2. Transfer for less than adequate and full considera-
tion Where property is transferred for less than an adequate and full
consideration in money or money’s worth, then the amount by which
the value of the property exceeded the value of the consideration shall,
for the purpose of the tax imposed by this chapter be deemed a gift
and shall be included in computing the amount of gifts made during the
calendar year.

Section 120-3. Gifts made in property—If the gift is made in
property, the fair market value thereof at the date of the gift shall be
considered the amount of the gift.

Section 120-4. Manner of determining tax; time of payment; ap-
plication to Department of Taxation for correction of assessment.—
The tax imposed by this chapter shall be paid by the donor on or before
the fifteenth day of March following the close of the calendar year.

The Department of Taxation shall determine all taxes assessable
under this chapter and immediately upon the determination of same,
shall forward a statement of the taxes determined to the person or per-
sons primarily chargeable with the payment thereof, and shall give
advice thereof to the Comptroller. Within one year after the tax has
been determined, any person aggrieved by the determination, may apply
in writing to the Department of Taxation, which may make such cor-
rections of the taxes as it may determine proper; provided, however,
that the rejection of the application in whole or in part by the Depart-
ment of Taxation shall not prevent any person from applying to the
court, as hereinafter provided, for the correction of said taxes.

Section 120-5. Penalties and interest—In any case where a donor
fails to file a return at the proper time, the Department of Taxation
shall assess a penalty of ten per centum of the tax determined by it,
together with interest upon such tax and penalty at the rate of six per
centum per annum from the date when such report should have been
filed until the date of the assessment.

If any tax, or any assessment of tax, penalties and interest, or any
part thereof, be not paid when due it shall bear interest at six per
centum per annum from the date of assessment until paid.

Section 120-6. Lien for tax; collection of tax—The tax imposed
by this chapter shall be a lien upon all gifts that constitute the basis
for the tax for a period of ten years from the time they are made. If
the tax is not paid by the donor when due, each donee shall be per-
sonally liable, to the extent of their respective gifts, for so much of the
tax as may have been assessed, or may be assessable thereon. Any part
of the property comprised in the gift that may have been sold by the
donee to a bona fide purchaser for an adequate and full consideration
in money or money’s worth shall be divested of the lien hereby imposed
and the lien, to the extent of the value of such gift, shall attach to all
the property of the donee (including after-acquired property) except
any part sold to a bona fide purchaser for an adequate and full con-
sideration in money or money’s worth.

If the tax is not paid within thirty days after it has become due,
the Department of Taxation may issue a warrant directed to the proper
sergeant, sheriff, constable or high constable directing him to enforce
the collection of said tax from said donor, or donee by levy or other-
wise in accordance with the authority contained in section nineteen of
the Tax Code of Virginia, and the Department of Taxation may, in
addition to such remedy, adopt any one or more of the other remedies
now provided by law for the collection of taxes generally.

In any proceeding by warrant or otherwise to enforce the collection
of said tax, the donor shall be liable for the full amount of the tax due
by reason of all the gifts constituting the basis for such tax and each
donee shall be liable only for so much of said tax as may be due on
account of his respective gift.

Section 120-7. Period of limitation upon assessment; assessment
upon failure or refusal to file proper return—Except as provided in
the next succeeding paragraph the amount of taxes imposed by this
chapter shall be assessed within three years after the return was filed.

In the case of a false or fraudulent return with intent to evade tax
or of a failure to file a return the tax may be assessed at any time.
If a donor should fail or refuse on demand to file a correct and
proper return as required by this chapter, the Department of Taxation
may make an estimate of the amount of taxes due the State by such
donor, and by the respective donees, from any information in its pos-
session, and assess the taxes, penalties and interest due the State by
such taxpayers.

Section 120-8. Tax to be assessed upon actual value of property ;
manner of determining value of annuities, life estates and interests less
than absolute interest—-Said taxes shall be assessed upon the actual
value of the property at the time of the transfer by gift. In every case
where there shall be a gift to take effect in possession or enjoyment
after the expiration of one of more life estates, or at any time in the
future, the tax shall be assessed on the actual value of the property or
the interest of the beneficiary therein at the time when he or she be-
comes entitled to the same in possession or enjoyment. The value of an
annuity or a life interest in such property, or any interest therein less
than an absolute interest, shall be determined by the annuity tables pro-
vided for by section fifty-one hundred and thirty-one of the Code of
Virginia. In every case in which it is impossible to compute the present
value of any interest in property so passing the Department of Taxa-
tion may effect such settlement of the tax as it shall deem to be for the
best interest of the Commonwealth, and payment of the same so agreed
upon shall be a full satisfaction of such taxes.

Section 120-9. Application for relief from taxes determined ; notice
required; proceedings——Any person aggrieved by the taxes assessed
under this chapter, may, within one year after the date of such assess-
ment, apply for relief to the circuit or corporation court of the county
or city in which the donor resided at the time of the transfer, or in
the case of a gift of real estate or any interest therein, to the circuit or
corporation court of the county or city in which such real estate is
situate, or in any case to the circuit court of the city of Richmond. An
application in writing, setting forth the manner in which the applicant
considers himself aggrieved, shall be filed with the clerk of the court
at least ten days before the hearing of the cause, and notice of the time
at which such application will be presented to the court shall be served
upon the attorney for the Commonwealth, and a copy of both the ap-
plication and the notice mailed to the Department of Taxation by
registered mail. Said notice shall be served on the clerk and the attorney
for the Commonwealth, and a copy thereof mailed to the Department
of Taxation at least thirty days prior to the hearing. The time which
shall elapse from the filing of such application in the clerk’s office, as
aforesaid, to the hearing of the same by the court, shall be excluded
from the computation of the said period of one year; and the time
which shall elapse from the date when an application in writing under
the provisions of this chapter, is hereafter filed with the Department
of Taxation, to the time when the Department of Taxation takes final
action with respect to such application filed with it, each of such ap-
plications relating to the same assessment, shall also be excluded from

the computation of said period of one year. The attorney for the
Commonwealth or such other attorney as the department may designate,
shall defend the application and no order made in favor of the ap-
plicant shall have any validity unless it is stated therein that such
attorney did so defend; and the facts proved upon such hearing shall
be certified.

Section 120-10. Jurisdiction of court upon hearing of the applica-
tion.—If the court be satisfied that the applicant is erroneously charged
with taxes and that the erroneous charge was not caused by the failure
or refusal of the applicant or his donor to furnish an inventory of the
property subject to the tax to the Department of Taxation, nor to the
failure or refusal of the applicant or his donor to file with the depart-
ment any report required by law, the court may correct the tax. If
the applicant is charged with more than the proper amount, the court
may order that he be exonerated from the payment of so much as is
erroneously charged, if not already paid, and if paid, that it be re-
funded to him. If the applicant is charged with less than the proper
amount the court shall order that the applicant pay the proper taxes.
A copy of any order made under this section shall be certified by the
court to the Department of Taxation. ,

Section 120-11. Appeal from order of court——The applicant shall
have the right of appeal from the order of the court to the Supreme
Court of Appeals as in other cases except appeals of right, and if the
appellate court shall decide that the tax determined by the lower court
is erroneous, the lower court shall have authority to order a refund
of so much of the tax as shall have been erroneously paid.

Section 120-12. Petition for rehearing on behalf of Commonwealth
by Department of Taxation; proceedings; appeals; costs.—If, upon
the statement of the facts or other evidence, the Department of Taxa-
tion shall be of opinion that the order of the court is erroneous, it may,
within six months from the time such order is made, file a petition for a
rehearing or review of such order. Said petition may be filed in the
court by which the order was entered or of which the clerk is an officer,
or with the judge or clerk thereof in vacation, and shall be in the
name of the Commonwealth, and on the filing of the same shall oper-
ate as a supersedeas and the matter shall thereupon be reheard or the
order reviewed in said court, and witnesses examined in the same
manner as if no previous determination had been had. The petition
shall be presented and the hearing conducted by the attorney for the
Commonwealth of the county or corporation, or such other attorney
as the department may designate. At the rehearing the court shall make
such order therein as may be proper, and should the order of the court
be against the Commonwealth, the Department of Taxation may take
an appeal to the Supreme Court of Appeals, and a supersedeas may be
granted in such case in the same manner as now provided by law in
cases other than cases of appeal of right. No costs shall be adjudged
against the Commonwealth on the appeal.

Section 120-13. Credits—In case a tax has been imposed under
this chapter upon any gift, and thereafter upon the death of the donor
the amount thereof if required by any provision of chapter nine of
the Tax Code of Virginia to be included in the gross estate of the
decedent then there shall be credited against and applied in reduction
of the inheritance tax, which would otherwise be chargeable against
the estate of the decedent or the respective shares of the beneficiaries
thereof under the provisions of chapter nine of the Tax Code of
Virginia, an amount equal to the tax paid, with respect to such gilt.

Section 120-14. Returns; time of filing; extension of time for
filing—Any person who within the calendar year nineteen hundred and
thirty-four, after the effective date of this chapter, or any calendar
year thereafter, makes any gift or gifts taxed by this chapter, shall
report in duplicate, under oath, to the Department of Taxation,
on forms provided for that purpose, showing therein an itemized sched-
ule of all such gifts, the name and residence of each donee and the
actual value of the gift to each, the relationship of each of such persons
to the donor, and any other information which the Department of
Taxation may require. Such returns shall be filed on or before the
fifteenth day of March following the close of the calendar year. The
Department of Taxation may grant a reasonable extension of time
for filing a report whenever in its judgment good cause exists.

Section 120-15. Definitions—The term ‘calendar year” includes
only the calendar year nineteen hundred and thirty-four and succeeding
calendar years, and, in the case of the calendar year nineteen hundred
and thirty-four, includes only the portion of such year after the
effective date of this chapter.

The provisions of this chapter nine-a of the Tax Code are subject
to the following qualifications, namely, as to all gifts made after De-
cember thirty-first, nineteen hundred and thirty-six, the words “ten
thousand dollars” shall be substituted for the words “five thousand
dollars” wherever used in this chapter, and the words “four thousand
dollars” shall be substituted for the words “two thousand dollars”
wherever used in this chapter.

Section 188. Merchants—Wholesale.—Every person, firm and cor-
poration engaged in the business of a wholesale merchant shall pay a
license tax for the privilege of doing business in this State to be
measured by the amount of purchases made by him or it during the
next preceding year, and all goods, wares and merchandise manu-
factured by such wholesale merchant and sold or offered for sale, in
this State, as merchandise, shall be considered as purchases within the
meaning of this section; provided, that this section shall not be con-
strued as applying to manufacturers taxed on capital by this State,
who offer for sale at the place of manufacture, goods, wares and mer-
chandise manufactured by them.

The term “wholesale merchant,” as used in this section, means every
merchant who sells to other persons for resale only.

For every license to a person, firm or corporation engaged in the
business of a wholesale merchant, the amount to be paid shall be as
follows:

If the amount of purchases throughout the then next preceding
calendar year did not exceed ten thousand dollars, the amount shall be
fifty dollars;-when such purchases exceeded ten thousand dollars, the
amount shall be fifty dollars on the first ten thousand dollars, and
thirteen cents on every one hundred dollars upon all in excess of ten
thousand dollars.

To ascertain the amount of purchases it shall be the duty of such
wholesale merchant, on the first day of January of each year, or within
ten days thereafter, to make report in writing, under oath, to the com-
missioner of the revenue for the county or city in which is located his
place of business, showing purchases as herein defined, during the next
preceding calendar year. The forms of the reports required by this
section shall be prepared by the Department of Taxation, and furnished
to each commissioner of the revenue, and by him distributed among all
wholesale merchants within his county or city.

For the purpose of ascertaining the tax to be paid by a wholesale
merchant beginning business, his purchases shall be considered to be
the amount of goods, wares and merchandise bought to commence
business with, including goods, wares and merchandise manufactured
by him to be offered for sale at the place at which he conducts his
business as a wholesale merchant, provided such place is not the place
of manufacture, also including an estimate of purchases which the
wholesale merchant will make between the date of the issuance of his
license and the thirty-first of December following, and including an
estimate of the amount of goods, wares and merchandise manufactured
by him to be offered for sale at the place at which he conducts his
business as a wholesale merchant, provided such place is not the place
of manufacture. Every under-estimate under this paragraph and the
next succeeding paragraph shall be subject to correction by the De-
partment of Taxation, whose duty it shall be to assess such wholesale
merchant with such additional taxes as may be found to be due after
the close of the license year on the basis of the true purchases.

The license tax of every wholesale merchant who was licensed at a
definite place of business for only a part of the next preceding license
year shall be computed for the then current license year on the basis
of an estimate of purchases which the wholesale merchant will make
throughout the then current license year, including an estimate of the
amount of goods, wares and merchandise manufactured by him to be
offered for sale at the place at which he conducts his business as a
wholesale merchant, provided such place is not the place of manufacture.

If, after the close of the year for which the license is issued, the
wholesale merchant should elect not to renew it, but desires the privi-
lege to sell whatever goods, wares and merchandise he may have on
hand at the time, it may be lawful for him to do so upon the payment
of a license tax upon said goods, wares and merchandise to be regarded
as purchases for the purpose of computing the license tax.

A wholesale merchant’s license, the tax on which would be two hun-
dred dollars or more were it issued for the period of one year, may be

issued quarterly, as provided in section one hundred and thirty-five;
but inasmuch as every wholesale merchant’s license tax is measured by
the purchases, no question of proration can arise.

Each wholesale merchant shall keep and preserve his invoices and a
record of all purchases, and from whom made, which record shall be
open to inspection and examination by the tax officers of the State, and
the report of purchases made by the wholesale merchant shall be taken
from that record; and he or his agents shall make oath to the correct-
ness of the report that the same is in accordance with said record, and
that the record has been accurately kept. It shall be the duty of the
commissioner of the revenue to examine the record of purchases re-
quired to be kept by the wholesale merchant and to verify the whole-
sale merchant’s report of purchases by that record.

Every wholesale merchant who does not keep the record herein
provided for shall be assessed with and pay a penalty of one hundred
dollars, in addition to such tax as may be ascertained as hereinafter
provided. Every wholesale merchant who does not keep the record
herein provided for shall be reported by the commissioner of the reve-
nue to the Department of Taxation and the Department of Taxation,
upon receiving such report, or in any case when it comes to the
knowledge of the Department of Taxation in any way that a wholesale
merchant has not kept, or is not keeping and preserving, the record
herein provided for, the Department of Taxation shall ascertain the
correct purchases of such wholesale merchant and assess such whole-
sale merchant with the State license tax provided by law upon the
purchases so ascertained, in addition to the penalty of one hundred
dollars, hereinbefore provided for. Such penalty shall in every such case
be added to the license tax, and shall become a part thereof, and shall be
collected in the same manner as taxes are collected; provided, however,
that any wholesale merchant who shall continue to violate the law re-
quiring such report to be kept, after receiving written notice from the
commissioner of the revenue or the Department of Taxation, shall be
subject to a further penalty of one hundred dollars for each month
such violation of the law shall continue after the giving of such notice,
which penalty shall be assessed and collected in the same manner as
taxes are assessed and collected.

The word “purchases,” as used in this section shall be construed to
include all goods, wares and merchandise received for sale at each
definite place of business of every wholesale merchant. The word “pur-
chases,” as so used shall not be construed to exclude any goods, wares
and merchandise otherwise coming within the meaning of the said word.
Every wholesale merchant shall keep at his each definite place of busi-
ness in this State the invoices and records required by this section to be
kept in this State; and the failure of any such wholesale merchant to
keep such invoices and records at his each definite place of business
in this State shall constitute a violation of the provisions of this section
in relation to the keeping of such invoices and records.

A manufacturer engaged in business in this State may, without a
wholesale merchant’s license, sell at the place of manufacture, the goods,
wares and merchandise manufactured by him. If a manufacturer desires
to sell, at a definite place or store, other than the place of manufacture,
to other persons for resale, the goods, wares and merchandise manu-
factured by him, then such manufacturer must take out a wholesale
merchant’s license, though this definite place or store be located in the
same county, city or town in which his place of manufacture is estab-
lished. When a manufacturer establishes a place or store for the sale
of his goods, other than at his place of manufacture, to other persons
for resale, the amount of the State license tax is to be measured not
only by the amount of purchases made by such manufacturer from
others, but also by the goods, wares and merchandise manufactured by
him and sent from the place of manufacture to his store for sale; and
he is required to report not only the amount of goods purchased by
him from others and offered for sale, but also the amount of goods
manufactured by him either within or without this State and offered
for sale by him at his store or definite place in this State other than
the place of manufacture. The cost of manufacture shall be taken as
the purchase price of the goods, wares and merchandise in the case of
a manufacturer who is also a wholesale merchant within the meaning
of the law. |

A manufacturer taxable on capital by the State may, except as in
this section provided, sell and deliver at the same time to licensed dealers
or retailers, but not to consumers, anywhere in the State, without the
payment of any license tax of any kind for such privilege to the State,
or to any city, town or county.

A wholesale merchant, who has been duly licensed by the State,
and duly licensed by the city or town, if his place of business be in a
city or town, or in lieu of a license tax to the city or town, has been
taxed by the city or town on the capital employed in business, may,
other than at a definite place of business, sell and deliver at the same
time to licensed dealers or retailers, but not to consumers, anywhere in
the State, without the payment of any additional license tax of any
kind for such privilege to the State, unless otherwise provided by law.

For every distributing house or place in this State (other than the
house or place of manufacture) operated by any person, firm or cor-
poration engaged in the business of a merchant in this State, for the
purpose of distributing goods, wares and merchandise among his or
its retail stores, a separate license shall be required, and the goods,
wares and merchandise distributed through such distributing house or
place shall be regarded as purchases for the purpose of measuring the
license tax, which tax shall be the same as the license tax imposed
hereby on a wholesale merchant.

Merchants—Retail—Every person, firm and corporation engaged
in the business of a retail merchant shall pay a license tax for the privi-
lege of doing business in this State to be measured by the amount of
sales made by him or it during the next preceding year, and all goods,
wares and merchandise manufactured by such merchant and sold in this
State, as merchandise, shall be considered as sales within the meaning

of this section; provided, that this section shall not be construed as
applying to manufacturers taxed on capital by this State, who sell at
the place of manufacture, goods, wares and merchandise manufactured
by them.

The term “retail merchant,” as used in this section, means every
merchant who sells at retail only and not for resale.

For every license to a person, firm or corporation engaged in the
business of a retail merchant, the amount to be paid shall be as follows:

If the amount of sales throughout the then next preceding calendar
year did not exceed one thousand dollars, the amount shall be ten
dollars; when such sales exceeded one thousand dollars and did not
exceed two thousand dollars, the amount shall be twenty dollars; when
such sales exceeded two thousand dollars the amount shall be twenty
dollars on the first two thousand dollars, and thirteen cents on every
one hundred dollars upon all in excess of two thousand dollars.

To ascertain the amount of sales it shall be the duty of such retail
merchant on the first day of January of each year, or within ten days
thereafter, to make report in writing, under oath, to the commissioner
of the revenue for the county or city in which is located his place of
business, showing sales as herein defined, during the next preceding
calendar year. The forms of the reports required by this section shall
be prepared by the Department of Taxation, and furnished to each
commissioner of the revenue, and by him distributed among all retail
merchants within his county or city.

For the purpose of ascertaining the tax to be paid by a retail mer-
chant beginning business, he shall estimate the sales which he will make
between the date of the issuance of his license and the thirty-first of
December following, including an estimate of the sales of goods, wares
and merchandise manufactured by him to be offered for sale at the
place at which he conducts his business as a retail merchant, provided
such place is not the place of manufacture. Every under-estimate under
this paragraph and the next succeeding paragraph shall be subject to
correction by the Department of Taxation, whose duty it shall be to
assess such retail merchant with such additional taxes as may be found
to be due after the close of the license year on the basis of the true
sales.

If the freight paid by a retail merchant on any article sold by him
shall exceed seventy-five per centum of the price paid by him for the
article itself, the amount of such freight in excess of seventy-five per
centum of the said purchase price of the article shall be eliminated from
consideration in ascertaining the amount of sales of such merchant and
the tax to be paid thereon.

The license tax of every retail merchant who was licensed at a
definite place of business for only a part of the next preceding license
year shall be computed for the then current license year on the basis
of an estimate of sales which the retail merchant will make throughout
the then current license year, including an estimate of the sales of goods,
wares and merchandise manufactured by him to be offered for sale at

the place at which he conducts his business as a retail merchant, pro-
vided such place is not the place of manufacture.

If, after the close of the year for which the license is issued, the
retail merchant should elect not to renew it, but desires the privilege to
sell whatever goods, wares and merchandise he may have on hand at the
time, it may be lawful for him to do so upon the payment of a license
tax measured by the retail sales value of such goods, wares and mer-
chandise, which value shall be estimated by the commissioner of the
revenue issuing the license, subject to review and revision by the De-
partment of Taxation.

A retail merchant’s license, the tax on which would be fifty dollars
or more were it issued for the period of one year, may be issued
quarterly, as provided in section one hundred and thirty-five; but
inasmuch as every retail merchant’s license tax is measured by sales,
no question of proration can arise.

Each retail merchant shall keep and preserve his invoices and a
record of all purchases, and from whom made, and each retail merchant
shall keep and preserve an accurate record of all sales made by him,
which records shall be open to inspection and examination by the tax
officers of the State, and the report of sales made by the retail mer-
chant shall be taken from that record; and he or his agents shall make
oath to the correctness of the report that the same is in accordance
with said record, and that the record has been accurately kept. It shall
be the duty of the commissioner of the revenue to examine the record of
sales required to be kept by the merchant and to verify the merchant’s
report of sales by that record.

Every retail merchant who does not keep the records herein provided
for shall be assessed with and pay a penalty of twenty-five dollars, in
addition to such tax as may be ascertained as hereinafter provided.
Every retail merchant who does not keep the records herein provided
for shall be reported by the commissioner of the revenue to the De-
partment of Taxation and the Department of Taxation, upon receiving
such report, or in any case when it comes to the knowledge of the
Department of Taxation in any way that a retail merchant has not kept
or is not keeping and preserving the records herein provided for, the
Department of Taxation shall estimate the probable sales of such retail
merchant to the best of its ability and assess such retail merchant with
the State license tax provided by law upon the sales so estimated, in
addition to the penalty of twenty-five dollars hereinbefore provided for.
Such penalty shall in every such case be added to the license tax, and
shall become a part thereof, and shall be collected in the same manner
as taxes are collected; provided, however, that any retail merchant who
shall continue to violate the law requiring such records to be kept, after
receiving written notice from the commissioner of the revenue or the
Department of Taxation, shall be subject to a further penalty of
twenty-five dollars for each month such violation of the law shall con-
tinue after the giving of such notice, which penalty shall be assessed
and collected in the same manner as taxes are assessed and collected.
Every retail merchant shall keep at his each definite place of business
in this State the invoices and records of sales required by this section
to be kept in this State; and the failure of any such retail merchant to
keep such invoices and record of sales at his each definite place of
business in this State shall constitute a violation of the provisions of
this section, in relation to the keeping of such invoices and records of
sales.

A manufacturer engaged in business in this State may, without a
retail merchant’s license, sell at the place of manufacture, the goods,
wares and merchandise manufactured by him. If a manufacturer desires
to sell, at a definite place or store, other than the place of manufacture,
at retail only and not for resale, the goods, wares and merchandise manu-
factured by him, then such manufacturer must take out a retail mer-
chant’s license, though this definite place or store be located in the same
county, city or town in which his place of manufacture is established.
When a manufacturer establishes a place or store for the sale of his
goods, other than at his place of manufacture, at retail only and not
for resale the amount of the State license tax is to be measured not
only by the amount of sales made by such manufacturer of goods, wares
and merchandise purchased from others, but also by the goods, wares
and merchandise manufactured by him and sent from the place of
manufacture to his store for sale and sold, and he is required to report
not only the amount of sales of goods purchased by him from others
and sold, but also the amount of sales of goods manufactured by him
either within or without this State and offered for sale by him and sold
at his store or definite place in this State other than the place of manu-
facture.

Dealers in coal, wood or ice paying a retail merchant’s license tax
under this section may peddle the same from vehicles without paying
additional tax ; provided that dealers in coal and wood in cities of forty
thousand inhabitants or more, who peddle the same from vehicles shall
pay an additional tax of fifty dollars for each vehicle thus used.

General provisions.—Any person, firm or corporation who or which
is both a wholesale merchant and a retail merchant, as defined in this
section, 1s hereby required to obtain both classes of licenses; provided,
however that any retail merchant who desires to do a wholesale business
also may elect to do such wholesale bl 1siness under his retailer’s license
by paying license taxes under this section as a retailer on both his retail
business and his wholesale business.

The sums imposed under and by virtue of this section shall be in lieu
of all taxes for State purposes on the capital actually employed by any
licensed merchant in his mercantile business, except the registration
fee and franchise tax, and except that such merchant shall not be
exempt from the payment of county, district, and road or other levies
on the amount of capital on hand on the first day of January of each
year and may be required to pay the usual city, county, district, and
road or other levies thereon, notwithstanding this section.

Merchant’s capital, which is by law segregated for local taxation ex-
clusively, is hereby defined for purposes of local taxation, as follows:

Inventory of stock on hand; the excess of bills and accounts receivable
over bills and accounts payable; money on hand and on deposit, and all
other taxable personal property of any kind whatsoever, except tangible
personal property not offered for sale as merchandise, which tangible
personal property shall be reported and assessed as such.

Goods, wares and merchandise not belonging to a merchant which
are offered for sale by the merchant or by another person at the mer-
chant’s duly licensed place of business shall require such merchant to
take out the license of a commission merchant.

No additional license, State or local, shall be required of any person,
firm or corporation licensed as a merchant in this State for engaging
in the business of selling goods, warés, or merchandise by sample, where
delivery is not made at the time of the sale and where the goods, wares
or merchandise subsequently delivered are not the samples.

This section, as hereby amended, shall be in force on and after
January first, nineteen hundred and thirty-five and shall apply to the
license year beginning January first, nineteen hundred and thirty-five
and every license year thereafter until otherwise provided by law;
provided, however, that there be, and is hereby appropriated to the State
Tax Commissioner, out of any moneys in the State treasury not other-
wise appropriated, the sum of fifteen thousand dollars for each of the
fiscal years ending June thirtieth, nineteen hundred and thirty-five and
June thirtieth, nineteen hundred and thirty-six, which said sums shall
be available for expenditure by the State Tax Commissioner for auditing
and checking the records of merchants and for enforcing the license laws.

2. Section one hundred and eighty-eight-a of the Tax Code of
Virginia shall be and the same is hereby repealed on and after the first
day of January, nineteen hundred and thirty-five.

Section 216. Taxes on railway and canal corporations——The State
tax on the rolling stock of all corporations operating railroads by steam
doing business in this State, so far as the same is taxable in this State,
shall be at the rate of two dollars and fifty cents on each one hundred
dollars of the assessed value thereof, and there shall be no local levies
assessed on such rolling stock. The rolling stock of all corporations
which now operate or which have heretofore operated railroads by
steam shall be taxed as if they have continued to operate railroads by
steam, notwithstanding the fact that they have changed or may change
the motive power by which such railroads are operated.

The State tax on the intangible personal property as assessed in the
section next preceding (other than shares of stock, and bonds issued
by counties, cities and towns or other political subdivisions of this State),
owned by every railway and canal corporation, shall be at the rate of
fifty cents on every hundred dollars of the assessed value thereof.

The State tax on the money of every railway and canal corporation
shall be twenty cents on every hundred dollars assessed value thereof.

There shall be no local levies assessed on such intangible personal
property or money.

On the real estate, rolling stock (other than the rolling stock of
corporations operating railroads by steam), and tangible personal prop-

erty of every railway and canal corporation, there shall be local levies
at the same rate or rates as are assessed upon other real estate and
tangible personal property, located in such localities, the proceeds of
which local levies shall be applied as is provided by law.

Every such railway or canal corporation shall pay to the State an
annual State franchise tax for each calendar year equal to one and
one-half per centum upon the gross transportation receipts, herein-
after specified, for the privilege of exercising its franchise in this State,
except that every such railway corporation operating an electric railway
or railways shall pay to the State an annual State franchise tax equal
to one and six-tenths per centum upon the gross transportation receipts,
hereinafter specified, for the privilege of exercising its franchise in this
State; which, with the taxes hereinbefore provided for, shall be in
lieu of all taxes or license charges whatsoever, upon the franchises of
such corporations and the shares of stock issued by them, and upon
all of their property, as hereinbefore provided; provided, that nothing
herein contained shall exempt such corporations from the annual fee
required by section one hundred and fifty-seven of the Constitution or
from assessment for street and other local improvements, which shall
be authorized by law, or from the county, city, town, district or road
levies hereinafter provided for other than a franchise tax; and, pro-
vided, further, that nothing herein contained shall annul or interfere
with, or prevent any contract or agreement by ordinance between street
railway corporations and municipalities as to compensation for use of
the streets or alleys of such municipalities by such railway corporation ;
and, provided, further, that in case of any railway or canal corporation
operated wholly within this State, whose actual operating expenses ex-
ceed its gross transportation receipts, the annual State franchise tax
shall be equal to one and three-sixteenths per centum upon the gross
transportation receipts.

The amount of such franchise tax shall be equal to one and one-half
per centum of the gross transportation receipts of such corporation for
the year ending December thirty-first preceding, except that the amount
of such franchise tax on every railway corporation operating an electric
railway or railways shall be equal to one and six-tenths per centum of
the gross transportation receipts of such corporation for the year ending
December thirty-first preceding, to be ascertained by the State Corpora-
tion Commission in the following manner :

(a) When the road or canal of the corporation lies wholly within
this State, the tax shall be equal to one and one-half per centum of the
entire gross transportation receipts of such corporation, except that
the amount of such franchise tax on every railway corporation opera-
ting an electric railway or railways shall be equal to one and six-tenths
per centum of the entire gross transportation receipts of such corpora-
tion.

(b) When the road or canal of the corporation lies partly within
and partly without this State, or is operated as a part of a line or system
extending beyond this State, the tax shall be equal to one and one-half

per centum of the gross transportation receipts earned within this State,
except that the amount of such franchise tax on every railway corpora-
tion operating an electric railway or railways shall be equal to one and
six-tenths per centum of the gross transportation receipts earned within
this State, to be determined as follows:

By ascertaining the average gross transportation receipts per mile
over its whole extent within and without this State, and multiplying
the result by the number of miles operated within this State; provided,
that from the sum so ascertained there may be deducted a reasonable
sum because of any excess of value of the terminal facilities or other
similar advantages situated in other states over similar facilities or ad-
vantages situated in this State.

Whenever such railway corporation operating an electric railway
or railways shall operate motor vehicles engaged in transporting per-
sons or property solely within the limits of any city or town in this
State, as an auxiliary to or in connection with such electric railway
operations, then the gross receipts derived from such motor vehicle
operation, shall be treated as electric railway receipts and be subject
to the same annual State franchise tax as provided for herein.

The real estate and tangible personal property (other than the rolling
stock of corporations operating railroads by steam), of such corporation,
but not its franchise, shall be assessed on the valuation fixed by the
State Corporation Commission with county, city, town, district and road
levies at the same rate as real estate and tangible personal property of
natural persons are assessed with such levies.

No State tax, county, city, town, district or road levy shall be
laid on the net income of any railway or canal corporation, nor shall
any county, city, town, district or road levy be laid on the gross trans-
portation receipts of any such company.

All the taxes and levies shall, until paid, be a lien upon the property
within this State of the corporation owning the same, and take pre-
cedence of all other liens or encumbrances.

Any such railway or canal corporation, or the State or any county
or city, at the instance of the Attorney General for the State or the
Commonwealth’s attorney for any county or city, aggrieved by the
assessment and ascertainment of such taxes, may, within thirty days
after receiving a certified copy thereof, apply for relief to the circuit
court of the city of Richmond. Notice of the application setting forth
the grounds of complaint verified by affidavit if the appeal be taken
by any such railway or canal corporation shall be served on the State
Corporation Commission, and on the Attorney General, whose duty it
shall be to represent the Commonwealth, or, if the appeal be taken by the
State or any county, or city, notice of the application, setting forth the
grounds of complaint, shall be served on such railway or canal corpora-
tion. If the court be of opinion that the assessment or tax is excessive, it
shall reduce the same, but if of the opinion that it is insufficient, it shall
increase the same. Unless the applicant paid the taxes under protest
when due, the court, if the decision is adverse to the applicant, shall, in
disallowing the application, give judgment against it for the taxes as-
sessed by the State Corporation Commission, and for a sum, by way of
damages, equal to interest at the rate of one per centum per month upon
the amount of taxes from the time the same were payable. If the decision
is in favor of such railway or canal corporation, in whole or in part,
appropriate relief shall be granted, including the right to recover any
excess of taxes that may have been paid, with legal interest thereon,
and the legally taxable costs of said application from the State or local
authorities, or both, as the case may be, the judgment to be enforced
by mandamus or other proper process issuing from the court finally
adjudicating the application. If the decision be in favor of the State
or any county or city, appropriate relief shall be granted and the court
shall enforce its judgments by mandamus or other proper process. The
Supreme Court of Appeals may, subject to the provisions of article six
of the Constitution, allow writ of error to either party; provided, how-
ever, that any steam railway company in which nine-tenths of the stock
of such company is owned by a city or county of this State and which
is operated at a loss, shall pay to the State an annual State franchise
tax of only five dollars.

The provisions of this section, as hereby amended, shall apply to the
assessment for the tax year nineteen hundred and thirty-four and an-
nually thereafter, unless otherwise provided by law.

Section 216-a. Pipe line transportation companies.—All companies
engaged in the business of transporting gas, oil or any commodity by
means of pipe lines in this State, shall report annually on or before the
first day of May, to the State Corporation Commission all of its real
and personal property of every description, as of the beginning of the
first day of January preceding; showing particularly in what city, town
or county and school district therein the property is located. This report
shall be itemized as provided for herein. Each such company shall also
report the total miles of mains located in this State.

The reports herein required shall be verified by the oath of the
president or other proper officer or person making the same.

The State Corporation Commission shall, after thirty days’ notice.
previously given the president or other proper person, assess the value
of the property of each such corporation, and shall assess the franchise
tax hereinafter provided for.

Should any such corporation fail to make the reports required by
this section on or before the first day of May of each year, the State
Corporation Commission shall, at such time as it may elect, upon the best
and most reliable information that can be procured, assess the value
of the property of such corporation, and shall, in the execution of such
duties, be authorized. and empowered to send for persons and papers.

The State Corporation Commission shall assess upon said property
the taxes imposed thereon by law.

A certified copy of the assessment when made shall be immediately
forwarded by the clerk of the State Corporation Commission to the
Comptroller and to the president or other proper officer of each such

corporation, and such corporation shall pay into the treasury of the
State by the first day of October following the taxes assessed against it.

It shall be the duty of the clerk of the State Corporation Commission
to furnish to the council of every city and town and to the board of
supervisors of every county wherein any property belonging to such
corporation is situated a certified copy of the assessment made by the
State Corporation Commission of such company’s property, which as-
sessment shall definitely show the character of the property, its value and
location for the purpose of taxation, in each city, town or county and
school district therein ; so that city, town, county and district levies may
be imposed upon the same.

Any such corporation failing to pay the tax into the treasury within
the time prescribed, shall incur a penalty thereon of five per centum,
which shall be added to the amount of said tax.

All companies falling under the provisions of this section shall re-
port the diameter in inches of their mains, length of cast iron mains,
length of steel and wrought iron mains, the depth laid of mains, the
kind of soil or rock excavated for same, the age, cost per foot, includ-
ing paving, kind of paving, and total cost as laid; the number, size, age
and cost of each installed valve and curb box, and the total cost of same.

The State tax on the intangible personal property (other than shares
of stock, and bonds issued by counties, cities and towns or other politi-
cal subdivisions of this State), owned by every company falling under
the provisions of this section, shall be at the rate of fifty cents on every
hundred dollars of the assessed value thereof.

The State tax on the money of every company coming under the
provisions of this section shall be twenty cents on every hundred dol-
lars assessed value thereof.

There shall be no local levies assessed on such intangible personal
property and money.

On the real estate and tangible personal property of every company
coming under the provisions of this section there shall be local levies
at the same rate or rates as are assessed upon other real estate and
tangible personal property, located in such localities, and proceeds of
which local levies shall be applied as is provided by law.

Every company coming within the provisions of this section, shall
pay to the State an annual State franchise tax equal to one hundred and
twenty dollars for each mile of pipe line located in this State, for the
privilege of exercising its franchise in this State, which, with the taxes
hereinbefore provided for, shall be in lieu of all State taxes or license
charges whatsoever upon the franchises of such corporation, and the
shares of stock issued by it, and upon all its property as hereinbefore
provided; provided, that nothing herein contained shall exempt such
corporation from the annual fee required by section one hundred and
fifty-seven of the Constitution, or from the county, city, town, district
or road levies.

The real estate and tangible personal property of such corporations,
but not its franchise, shall be assessed on the valuation fixed by the State

Corporation Commission, with county, city, town, district and road
levies at the same rate as real and personal property of natural persons
are assessed with such levies.

No State tax, county, city, town, district or road levy shall be laid
on the net income of any such corporation, nor shall any State, county,
city, town, district or road levy be laid on the gross receipts of any
such company. ,

All taxes and levies shall, until paid, be a lien upon the property
within this State of the corporation owning the same, and take pre-
cedence of all other liens or encumbrances.

The provisions of this section shall apply for the tax year nineteen
hundred and thirty-four and every tax year thereafter until otherwise
provided by law.

Section 223. Sleeping car, parlor car, and dining car companies.—
Each sleeping car, parlor car and dining car company doing business
between points in this State shall report annually on or before the first
day of May, to the State Corporation Commission:

(a) The total number of miles of track over which it operated its
cars in this State on the first day of January preceding.

(b) The gross receipts from operations entirely within this State,
and if operations are partly within and partly without this State the en-
tire gross receipts from operations for the year ending December thirty-
first next preceding. . ,

(c) Any and all other information, in such manner and such detail
as the State Corporation Commission shall require.

The State Corporation Commission shall, after thirty days’ notice
previously given by it to the president or other proper officer, assess
upon each such company the tax imposed thereon by law.

Should any such company fail to make the report required by this
section on or before the first day of May the said State Corporation
Commission shall, at such time as it may elect, upon the best and most
reliable information that can be procured, assess the tax imposed
thereon, and shall ascertain the information required herein, and in
the execution of the duty shall be authorized and empowered to take
testimony, summon and compel the attendance of witnesses and send
for persons and papers.

A certified copy of the assessment when made, shall be immediately
forwarded by the clerk of the State Corporation Commission to the
Comptroller and to the president or other proper officer of each such
company, and such company shall pay into the treasury of the State by
the first day of October following the taxes assessed against it.

Any such company failing to pay said tax into the treasury within
the time herein prescribed shall incur a penalty thereon of five per
centum, which shall be added to the amount of said tax.

Section 224. Tax on sleeping car, parlor car, and dining car com-
panies.—Every such sleeping car, parlor car, and dining car company
operating and doing business within this State shall pay an annual tax
as follows:

Said tax shall be equal to two per centum of the gross receipts from
operations within this State. When such company is operating partly
within and partly without this State, the gross receipts within this State
shall be deemed to be all receipts on business beginning and ending
within this State and all receipts earned in Virginia on business passing
through, into or out of this State; provided, unless otherwise clearly
shown, such last mentioned receipts shall be deemed to be that portion
of the total receipts from such business which the mileage over which
it operated within this State bears to the entire mileage over which
such business is done.

The taxes herein imposed shall be in lieu of all other taxes, State,
county and municipal, against such companies except that they shall
be required to pay to the State the annual registration fee.

The provisions of this act shall apply to the assessment for the tax
year nineteen hundred and thirty-four and annually thereafter, unless
otherwise provided by law.

Section 227. License tax on telegraph and telephone companies, and
on any firm or person operating the apparatus necessary to communicate
by telegraph or telephone.—Each telegraph company and firm, or per-
son, operating the apparatus necessary to communicate by telegraph,
shall, for the privilege of doing business between points within this
State, pay a license tax as follows, to-wit: two dollars and twenty-five
cents per mile of line of poles or conduits owned or operated by any
company, firm or person in this State and an additional charge of three
and one-eighth per centtum of the gross receipts of the company, firm
or person received (or due, though not received), from business done
within this State during the year ending thirty-first day of December.

The specific license tax to be paid by every corporation, person, or
association, for the privilege of operating the apparatus necessary to
communicate by telephone, shall be, when the gross receipts do not
exceed sixty-five thousand dollars, and when the number of miles of
poles do not exceed seven hundred miles, and a majority of the stock
or other property of such company is not owned or controlled by any
other telephone or telegraph company whose receipts exceed sixty-five
thousand dollars, a sum equal to one and one-sixteenth per centum of
the gross receipts of such corporation, person or association from busi-
ness done within this State during the year ending the thirty-first day
of December preceding; when the gross receipts from business done
within this State during any such year are in execss of sixty-five
thousand dollars. or the number of miles of poles exceeds seven hun-
dred or a majority of the stock or other property of such company is
owned or controlled by any other telephone or telegraph company whose
receipts exceed sixty-five thousand dollars, the license tax shall be
a sum equal to one and one-sixteenth per centum of such receipts up to
sixty-five thousand dollars and an additional sum equal to two and one-
half per centum of such receipts exceeding sixty-five thousand dollars,
and, in addition, a sum equal to two dollars and twenty-five cents per
mile of line of poles or conduits, owned or operated by such corporation,
person, or association in this state; when the number ot miles of poles
exceeds seven hundred and no license tax is paid upon gross receipts the
license tax shall be a sum equal to ten dollars per mile of line of poles
or conduits, owned or operated by such corporation, person, or associa-
tion in this State; provided that no license tax shall be charged against
any telephone company, chartered in this State for the privilege of
prosecuting its business when such company is purely a local mutual
association, and does not charge others for transmitting messages over
its line or lines, and is not designed to accumulate profits for the bene-
fit of or to pay dividends to, the stockholders or members thereof.

The license tax to be paid by any firm or person, not incorporated,
transacting a telegraph or telephone business, or owning or operating
a telegraph or telephone instrument, line or conduit, shall be assessed
by the commissioner of the revenue for the county or city wherein the
principal office of such firm or person is located, or in which such firm
or person resides.

The provisions of this section, as hereby amended, shall apply to
the assessment for the tax year nineteen hundred and thirty-four and
annually thereafter, unless otherwise provided by law.

Section 228. (1) All corporations doing in Virginia the business
of furnishing water or heat, light and power, whether by means of
electricity or gas, shall, on or before the first day of May of each year,
report to the State Corporation Commission all of its real and personal
property of every description in this State belonging to it as of the
beginning of the first day of January preceding; showing particularly
in what city, town or county and school district therein the property
is located. This report shall include all water power rights and privi-
leges, dams, flumes and canals, and shall be itemized as provided in
paragraphs two, three and four of this section. Each such corporation
shall also report its gross receipts from all business done in Virginia
for the year ending December thirty-first preceding. The gross receipts
to be reported and subject to taxation, shall include those received from
incidental operations as well as those derived from the sale of water
or heat, light and power. The reports herein required shall be verified
by the oath of the president or other proper officer or person making
the same. The State Corporation Commission shall, after thirty days’
notice, previously given to the president or other proper person, assess
the value of the property of each such corporation, and shall assess
the franchise tax hereinafter provided for. Should any such corpora-
tion fail to make the reports required by this section on or before the
first day of May of each year, the State Corporation Commission shall,
at such time as it may elect, upon the best and most reliable information
that can be procured, assess the value of the property of such corpora-
tion, and shall, in the execution of such duties, be authorized and em-
powered to send for persons and papers, and administer an oath to
witnesses and examine the same. The State Corporation Commission
shall, after thirty days’ notice, previously given by it to the president,
treasurer or other proper officer of such corporation, proceed to ascer-

tain the value of the property and gross receipts so reported upon the
best and most reliable information that can be procured, and to this
end shall be authorized and empowered to send for persons and papers.
The State Corporation Commission shall assess upon said property and
gross receipts the taxes imposed thereon by law. A certified copy of
the assessment when made shall be immediately forwarded by the clerk
of the State Corporation Commission to the Comptroller and to the
president or other proper officer of each such corporation, and such
corporation shall pay into the treasury of the State by the first day of
October following the taxes assessed against it. It shall be the duty
of the clerk of the State Corporation Commission to furnish to the
council of every city and town and to the board of supervisors of every
county wherein any property belonging to such corporation is situated
a certified copy of the assessment made by the State Corporation Com-
mission of such company’s property, which assessment shall definitely
show the character of the property, its value and location for the
purpose of taxation, in each city, town or county, and school district
therein; so that city, town, county and district levies may be imposed
upon the same. Any such corporation failing to pay the tax into the
treasury within the time herein prescribed, shall incur a penalty thereon
of five per centum, which shall be added to the amount of said tax.

(2) All electric light and power companies shall, to the extent that
the property hereinafter particularly set forth is situated in Virginia,
report to the State Corporation Commission the following property,
which shall be particularly set forth in said report: The number of feet
of conductor or cable, number of conductors, insulators, size of con-
ductor and standard of guage, total cost of conductor installed, number,
kind, height, diameter at top, average (age), cost including arms and
insulators of poles carrying conductors; number, kind and total cost of
lamp poles erected ; number of arc lamps, type, capacity in amperes, and
total cost of same; number of incandescent lamps, candle power and total
cost of same; number of transformers, capacity of each in kilowatts, and
the total cost of same installed; length in feet and size of each conduit,
number of ducts, type of ducts, number of duct feet in each size condutt,
character of excavation, manner in which the ducts are laid, number of
manholes and handholes, size and character of manholes and hand-
holes, character and number of square yards of paving, and total cost
of each conduit; the number of feet of cable in each conduit, number of
conductors, character of insulation, working pressure, size and standard
of guage, total cost of cable installed with junction boxes and the num-
ber, type and total cost of junction boxes installed; the number and
capacity each in kilowatts of subway transformers and the total cost of
subway transformers installed.

(3) All corporations manufacturing and furnishing gas shall re-
port the diameter in inches of their mains, length of cast iron mains,
length of steel and wrought iron mains, the depth laid of mains, the
kind of soil or rock excavated for same, the age, cost per foot, includ-
ing paving, kind of paving, and total cost as laid ; the number, size, age

and cost of each installed valve and curb box, and the total cost of
same; the number, diameter in inches, length in feet, cost per foot, in-
cluding paving, and the total cost of services, including meters; number
of street lamps, cost of same installed.

(4) All corporations furnishing and selling water shall report the
diameter in inches of mains, length of cast iron mains, length of steel
and wrought iron mains, the depth laid and the kind of soil or rock
excavated, the age and cost per foot, including paving, kind of paving,
and total cost of said mains; the number, size, age and cost of each gate
installed, and the total cost of gates installed; the number, size, age and
cost of each hydrant and the total cost of hydrants installed; the num-
ber, diameter in inches, length in feet, cost per foot, including paving,
of each service, and the total cost of service.

(5) Railway companies, which, in addition to operating a railroad,
also sell heat, light or power within this State, shall come within the
provisions of this section. The value of the plant of each such com-
pany shall be apportioned as between its heating, lighting and power
business on the one hand, and its railroad business on the other, upon the
basis of its gross receipts from each department, and each such company
shall segregate its gross receipts from the sale of heat, light and power
from its gross receipts from its railroad and report its gross receipts
from the sale of heat, light and power to the State Corporation Com-
mission, and pay the property and franchise tax as herein provided.

Section 229. The State tax on the intangible personal property
(other than shares of stock, and bonds issued by counties, cities and
towns or other political subdivisions of this State) owned by every
corporation doing in this State the business of furnishing water or
heat, light and power, whether by means of electricity or gas, shall be
at the rate of fifty cents on every hundred dollars of the assessed value
thereof.

The State tax on the money of every corporation doing in this
State the business of furnishing water or heat, light and power, whether
by means of electricity or gas, shall be twenty cents on every one hun-
dred dollars assessed value thereof.

There shall be no local levies assessed on such intangible personal
property or money.

On the real estate and tangible personal property of every corpora-
tion doing in this State the business of furnishing water or heat, light
and power, whether by means of electricity or gas, there shall be local
levies at the same rate or rates as are assessed upon other real estate
and tangible personal property, located in such localities, and proceeds
of which local levies shall be applied as is provided by law.

Every corporation coming within the provisions of this and the pre-
ceding section, shall pay to the State for each of the tax years nineteen
hundred and thirty-four, nineteen hundred and thirty-five and nineteen
hundred and thirty-six, an annual State franchise tax equal to one and
one-eighth per centum of its gross receipts from all sources up to one
hundred thousand dollars for such gross receipts and three per centum of
all such gross receipts in excess of one hundred thousand dollars, and for
the tax year nineteen hundred and thirty-seven and every tax year there-
after until otherwise provided by law, an annual State franchise tax
equal to one and one-eighth per centum of its gross receipts, from all
sources, for the privilege of exercising its franchise in this State, which,
with the taxes hereinbefore provided for, shall be in lieu of the annual
State merchants license tax required under gection one hundred and
eighty-eight of the Tax Code of Virginia, and|jall State taxes or license
charges whatsoever upon the franchises of such corporation, and the
shares of stock issued by it, and upon all its property as hereinbefore
provided ; provided, that nothing herein contained shall exempt such cor-
poration from the annual fee required by section one hundred and fifty-
seven of the Constitution, or from assessments |for street and other local
improvements, which shall be authorized by law] or from the county, city,
town, district or road levies; provided, that any|city or town may impose
a license tax upon such corporation for the privilege of doing business
therein, which shall not exceed one-half of |one per centum of the
gross receipts of such business accruing to such corporation from said
business in such city or town; and, provided, further, that from the
amount of any such license tax there shall be deducted any sum or sums
paid by such corporations to such city or town as a merchants license
tax, and license taxes; and, provided, further, |that nothing herein con-
tained shall annul or interfere with or prevent any contract or agree-
ment by ordinance between such corporations |and municipalities as to
compensation for the use of streets or alleys gf such municipalities by
such corporations.

The real estate and tangible personal property of such corporations,
but not its franchise, shall be assessed on the valuation fixed by the
State Corporation Commission, with county, |city, town, district, and
road levies, at the same rate as real and personal property of natural
persons are assessed with such levies.

No State tax, county, city, town, district or road levy shall be laid
on the net income of any such corporations ndr shall any county, city,
town, district or road levy be laid on the grdss receipts of any such
company.

All taxes and levies shall, until paid, be aj lien upon the property
within this State of the corporation owning the same, and take pre-
cedence of all other liens or encumbrances.

Any such corporation or the State or any county, or city, at the
instance of the Attorney General of the State, or of the Common-
wealth’s attorney for any county or city aggrieved by the assessment
and ascertainment of such taxes, may, within thirty days after receiving
a certified copy thereof, apply for relief to the|circuit court of the city
of Richmond. Notice of the applications setting forth the grounds of
complaint verified by affidavit, if the appeal be taken by such corporation,
shall be served on the State Corporation Commission, and on the At-
torney General, whose duty it shall be to represent the Commonwealth,
or if the appeal be taken by the State or any dounty or city, notice of

the application, setting forth the grounds of complaint, shall be served
on such corporation. If the court be of the opinion that the assessment
or tax is excessive it shall reduce the same, but if of the opinion that
+ is insufficient, it shall increase the same. Unless the applicant pay
the taxes under protest when due, the court, if the decision is adverse
to the applicant, shall, in disallowing the application, give judgment
against it for the taxes assessed by the State Corporation Commission,
and for a sum, by way of damages, equal to interest at the rate of one
per centum per month upon the amount of the taxes from the time
same were payable. If the decision is in favor of such corporation, in
whole or in part, appropriate relief shall be granted, including the right
to recover any excess of taxes that may have been paid with legal
‘nterest thereon, and the legally taxable cost of said application from
the State or local authorities, or both, as the case may be, the judgment
to be enforceable by mandamus or other proper process issuing from
the court finally adjudicating the application. If the decision be in
favor of the State or any county or city, appropriate relief shall be
granted, and the court shall enforce its judgment by mandamus or other
proper process.

The Supreme Court of Appeals may, subject to the provisions of
article six of the Constitution, allow a writ of error to either party.

The provisions of this section, as hereby amended, shall apply to
the assessment for the tax year nineteen hundred and thirty-four and
annually thereafter, unless otherwise provided by law.

3. The State revenue derived from this act shall be paid into the
general fund of the State treasury ; and there is hereby appropriated,
out of the general fund of the State treasury, to the State Board of
Education, for the maintenance of public free schools, such sum as
may be derived from this act not to exceed the sum of one million dol.
lars for the year ending June thirtieth, nineteen hundred and thirty-five.
and such sum as may be derived from this act not to exceed the surr
of one million dollars for the year ending June thirtieth, nineteen, hun-
dred and thirty-six.

The appropriation hereby made is in addition to the appropriatior
made by the general appropriation act of nineteen hundred and thirty-
four in aid of the public free schools. The appropriation hereby made
shall be apportioned by the State Board of Education among the schoo
divisions in terms of the number of teachers needed for each group 0!
twenty-five to forty pupils in average daily attendance depending upor
the density of school population.