Chap. 342.—An ACT to amend and re-enact section 203 of the Tax Code of
Virginia, in relation to the license taxation of vendors of patent, proprietary
or domestic medicines, salves, liniments or compounds of like kind, spices,
extracts, toilet articles and other articles of like kind. [H B 285]

Approved March 29, 1934

I. Be it enacted by the General Assembly of Virginia, That section
203 of the Tax Code of Virginia be amended and re-enacted so as
to read as follows:

Section 203. Vendors of medicines, salves, liniments, et cetera —
No person shall sell any patent, proprietary or domestic medicines,
salve, liniment or compound of like kind, spices, extracts, toilet ar-
ticles or other articles of like kind, unless he be a licensed merchant,
whether he be the manufacturer thereof or not, without a license,
such license to be graduated by the amount of sales made by such
vendor during the next preceding year, and all such goods, wares and

merchandise manufactured by such vendor and sold or offered for
sale, in this State, 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 offer
for sale at the place of manufacture, goods, wares and merchandise
manufactured by them.

For every license to such vendor engaged in selling merchandise
of the kind described in this section, the amount to be paid shall be
graduated as follows:

If the amount of sales throughout the then next preceding calen-
dar year did not exceed five thousand dollars, the amount shall be
fifty dollars; when such sales exceed five thousand dollars, the amount
shall be fifty dollars on the first five thousand dollars, and twenty
cents on every hundred dollars in excess of five thousand dollars.

To ascertain the amount of sales it shall be the duty of such ven-
dor on the first day of January of each year or within ten days there-
after, to make a report in writing, under oath, to the commissioner
of the revenue for the county or city in which he was licensed, show-
ing sales as herein defined, during the next preceding twelve months.

The form of the report required by this section shall be prepared
by the Department of Taxation, and furnished to each commissioner
of the revenue, and by him distributed to each vendor.

For the purpose of ascertaining the tax to be paid by such vendor
beginning business, he shall estimate the sales which he will make be-
tween 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. Every
underestimate 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 vendor 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.

The license tax of every vendor who was licensed for only a part
of the next preceding license year shall be computed for the then cur-
rent license year on the basis of an estimate of sales which the vendor
will make throughout the then current license year, including an es-
timate of the sales of goods, wares, and merchandise manufactured
by him to be offered for sale.

If after the close of the year for which the license is issued, the ven-
dor 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, if
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 rev-
enue issuing the license, subject to review and revision by the De-
partment of Taxation.
_A vendor’s license, the tax on which would be fifty dollars or
more were it issued for the period of one year, may be issued quar-
terly, as provided in section one hundred and thirty-five.

Each vendor shall comply with and be subject to all of the pro-
visions of section one hundred and eighty-eight respecting the keeping
of invoices and records of purchases and sales and be subject to pen-
alties for failure so to do in the same manner as is therein required
for merchants; provided, however, that in case of any vendor whose
sales shall not exceed five thousand dollars for the preceding year, a
license shall be issued to him upon the payment by him of fifty dollars
and upon his making an oath in manner and form prescribed by the
Department of Taxation truthfully setting forth that said sales did not
exceed the sum of five thousand dollars, whereupon the provisions
hereof and of section one hundred and eighty-eight with respect to
the keeping of records, other than invoices, and the penalties for fail-
ure so to do shall not apply.

The license provided in this section shall be the only license re-
quired of such vendor for the privilege of vending the merchandise
in this section referred to.