Chap. 398.—An ACT to amend and re-enact Section 198 of the Tax Code of
Virginia, as heretofore amended, relating to license tax upon slot machines.
[H B 300]

Approved March 30, 1936

1. Be it enacted by the General Assembly of Virginia, That section
one hundred and ninety-eight of the Tax Code of Virginia, as hereto-
fore amended, be amended and re-enacted so as to read as follows:

Section 198. Any person, firm or corporation having anywhere
in this State a slot machine of any description into which are inserted
nickels or coins of larger denominations to dispose of articles of mer-
chandise, or for the purpose of operating devices that operate on the
coin-in-the-slot principle, used for gain, except as a pay telephone,
shall pay for every such slot machine or device, as the case may be, a
State license tax of twenty-five dollars per year; except for each coin
operated musical machine or musical device that operates on the
coin-in-the-slot principle, on which there is hereby levied a State
license tax of five dollars per year for each such musical machine or
musical device; except such vending machines as are used solely for
the sale of agricultural products, soft drinks or cigars, on which there
is hereby levied a State license tax of three dollars per year for each
machine; and except also vending machines operated on premises for
which a merchants’ license and tobacco retailers’ license have been
obtained and used solely for the sale of cigarettes, on which there is
hereby levied a State license tax of three dollars per year for each
machine; and except also weighing machines and machines used
solely for the purpose of selling shoe strings, chewing gum, peanuts
or postage stamps on which there is hereby levied a State license tax of
one dollar per year for each machine; and except also miniature pool
tables, in the operation of which nickles or coins of larger denomina-
tions are used, on which there is hereby levied a State license tax of
ten dollars per year on each such coin-operated miniature pool table;
and except also automatic baggage or parcel checking machines or
receptacles, which are used for the storage of baggage or parcels of
any character, on which there is hereby levied a State license tax of
twenty-five cents per year for each receptacle that is operated on the
coin-in-the-slot principle; and on amusement machines operated by the
insertion of one cent there is hereby levied a State license tax of two
dollars per year for each machine; and on vending machines operated
by the insertion of one cent there is hereby levied a State license tax
of one dollar per year for each machine, provided, however, that
nothing contained in this section shall be construed as permitting any
such person, firm or corporation to keep, maintain, exhibit or operate
any slot machine or other device, the operation of which is prohibited
by law. This section shall not apply to slot machines that are used
solely for the purpose of selling individual sanitary drinking cups or
sanitary drinking cups and natural water at one cent.

No commissioner of the revenue shall issue any license under this
section unless and until the applicant states on oath that no element
of chance enters into the operation of the machine for which a license
is desired.

The State Tax Commissioner may prepare and furnish to the com-
missioners of the revenue stickers which, when signed by ‘the com-
missioner of the revenue issuing any slot machine license, shall evidence
the payment of the license tax; and it shall be the duty of every
licensee to whom any such sticker is issued by the commissioner of the
revenue to attach the same to the slot machine covered thereby and
to keep the same so attached throughout the license period. The form
of the stickers aforesaid shall be prescribed by the State Tax Com-
missioner.

It shall be unlawful for any proprietor, owner, operator, bailee,
licensee, or custodian of any slot machine, other than vending machines
which do nothing except to vend merchandise, and other than ma-
chines which provide service only, knowingly to permit any person
under the age of sixteen years to operate the same.

Every person, firm or corporation selling, leasing, renting or other-
wise furnishing a slot machine or slot machines to others, or placing
a slot machine or slot machines with others, shall be deemed to be a
slot machine operator. Every slot machine operator, as herein de-
fined, shall pay for the privilege an annual State license tax of one
thousand dollars. The license tax imposed by this paragraph is not in
lieu of, but is in addition to, the other license taxes imposed by this
section; provided, however, that the slot machine operator’s license
tax levied by this paragraph shall not be applicable to operators of
weighing machines, automatic baggage or parcel checking machines, or
receptacle, nor to machines vending cigarettes, soft drinks, shoe strings,
chewing gum, peanuts or postage stamps, which machines are so con-
structed as to do nothing but vend such merchandise, or postage
stamps, or provide service only, nor to operators of vending machines
operated by the insertion of one cent nor to operators of coin operated
musical machines or musical devices that operate on the coin-in-the-
slot principle; nor to pin tables that are pure amusement devices and
which make no return of any kind as the result of either the insertion
of a coin in a slot or from the playing of the machine; provided fur-
ther, however, that operators of cigarette vending machines shall pay
a tax of thirteen cents on every one hundred dollars of gross sales,
the said tax to be assessed and collected by the State Department of
Taxation after the first day of January and before the fifteenth day
of January following the calendar year in which such business is done,
under rules and regulations prescribed by the said department, and
the said operator shall, before commencing operations in the State,
deposit with the State Tax Commissioner a bond to insure the proper
payment of the taxes, the form, and amount of the bond to be deter-
mined by the State Tax Commissioner and the security or surety
thereon to be approved by him.

Any person, firm or corporation having any such slot machine or
other device and failing to procure a State license therefor, or other-
wise violating this section, shall be subject to a fine of not less than
fifty dollars nor more than five hundred dollars for each offense, and
such machine or other device shall become forfeited to the Common-
wealth.

In addition to the tax herein imposed, the board of supervisors of
each county and the council or other governing body of any city or
incorporated town may impose and collect a license tax upon slot
machines.

No license tax shall be imposed by the State or any city or town
on or on account of any candy vending machines under the ownership
and supervision of any State commission or State agency.