Chap. 212.—-An ACT to amend the Tax Code of Virginia by adding thereto
a new section numbered 190, in relation to persons, firms and corporations
selling goods, wares and merchandise through the use of vending machines
placed in manufacturing or other establishments not frequented by the general
public, for use of employees in such establishments. [S B 181]

Approved March 19, 1938

1. Be it enacted by the General Assembly of Virginia, That the
Tax Code of Virginia be amended by adding thereto a new section to
be numbered one hundred and ninety, which new section shall read
as follows:

Section 190. Merchants Placing Vending Machines in Manutfac-
turing or Certain Other Establishments for Use of Employees.—Every
person, firm and corporation engaged in the business of selling goods,
ware and merchandise through the use of coin-operated vending ma-
chines placed in manutacturing or other establishments not frequented
by the general public, for the use of employees in such establishments,
shall be classified as a retail merchant, and shall pay an annual State
license tax for the privilege of doing business in this State of twenty
dollars; provided, however, that if any such person, firm or corpora-
tion has more than one definite place in this State at which goods, wares
or merchandise are stored, kept or assembled for supplying such vend-
ing machines, the annual State license tax hereby imposed shall be
twenty dollars additional for each such definite place in excess of one.
The license taxes aforesaid shall not be subject to proration.

Every such person, firm and corporation shall also pay a tax of
thirteen cents on every one hundred dollars of gross sales through such
vending machines in excess of two thousand dollars in each calendar
year, or part thereof. Such volume tax shall be assessed and col-
lected by the State Tax Commissioner after the first day of January
and before the last day of January following the calendar year in
which such business is done, under such rules and regulations as may
be prescribed by the said commissioner; and every such person, firm
and corporation, before commencing to do such business in this State,
shall register with the State Tax Commissioner and deposit with the
State Tax Commissioner a bond to insure the keeping of adequate
records, the filing of reports in such form and at such times as may
be prescribed by the State Tax Commissioner, and the proper payment
of the taxes imposed by this section. The form and amount of the
bond shall be determined by the State Tax Commissioner and the
surety thereon shall be approved by him. All moneys collected by the
State Tax Commissioner under this section shall be paid promptly
into the general fund of the State treasury.

The taxes imposed by this section shall be in lieu of any license
tax on the individual vending machines.

The term “vending machines’, as used in this section, includes only
such machines as vend goods, wares and merchandise and give to the
customer on every purchase his money’s worth in goods, wares or mer-
chandise. The term does not include any machine the operation of
which is prohibited by law, nor any machine which has any gambling
or amusement feature whatsoever. ,

This section shall not apply to any vending machine upon which the
license tax is paid under the provisions of section one hundred and
ninety-eight of the Tax Code as amended. i

Any person, firm or corporation violating any of the provisions of
this section shall be guilty of a misdemeanor, and on conviction shall
be punished as provided by section forty-seven hundred and eighty-
two of the Code of Virginia. .