Chap. 38.—An ACT to amend and re-enact Section 237 of the Tax Code of
Virginia, as heretofore amended, relating to taxes on insurance companies.
[

H B 269]
Approved March 1, 1938

1. Be it enacted by the General Assembly of Virginia, That sec-
tion two hundred and thirty-seven of the Tax Code of Virginia, as
heretofore amended, be amended and re-enacted so as to read as fol-
lows: |

Section 237. Taxes on insurance companies.—Every person, part-
nership, company or corporation, which contracts on his, their or its
account to issue policies or contracts for or agreements for life, fire,
marine, surety, guaranty, fidelity, employer’s liability, liability, credit,
health, accident, disability, accidental death, live-stock, plate glass, tor-
nado, automatic sprinkler, burglary, steam boiler, motor vehicle, air-
craft and all like insurance, shall pay an annual license tax based on
the gross premium income, derived from business in this State during
each year ending the thirty-first day of December prior to the year for
which such license tax is to be paid for the privilege of doing business
in this State.

The license year shall expire on the thirtieth day of April of each
year. No license shall be issued for less than a year, except to a per-
son, partnership, company or corporation, when he, they, or it first
commenced business in this State, in which case the license shall be
issued for that part of the year from the date of the issuance of the
license to the thirtieth of April following, and the tax thereon shall be
two hundred dollars if the said license period be one year, otherwise
the first year’s license tax shall be such proportion of the two hundred
dollars license tax as the space of time between the issuance of the
license and the thirtieth of April following bears to the whole year.

The license tax herein provided shall be paid into the State treas-
ury on or before the first day of April of each year.

Every such person, partnership, company or corporation which con-
tracts on his, their or its account to issue policies or contracts for or
agreements for fire, marine, surety, fidelity, employers’ liability, liability,
credit, health, accident, disability, accidental death, live-stock, plate
glass, tornado, automatic sprinkler, burglary, steam boiler, motor ve-
hicle, aircraft and all like insurance shall pay into the State treasury,
as hereinabove provided, a license tax of two and three-quarters
per centum upon the gross amount of all premiums, assessments, dues
and fees collected, received or derived, or obligations taken therefor,
from business in this State during each year ending the thirty-first day
of December, except premiums received for reinsurance assumed, with-
out any deduction for dividends, paid, or deduction on any other account,
except for premiums returned upon cancelled policies or on account of
reduction in rates or reduction in the amount insured.

And every such person, partnership, company or corporation which
contracts on his, their, or its account to issue policies or contracts for
or agreements for life insurance, and all like insurance, shall pay into
the State treasury, as hereinabove provided, a license tax of two and
one-fourth per centum upon the gross amount of all premiums, assess-
ments, dues and fees collected, received or derived, or obligations taken
therefor. from business in this State during each year ending the
thirty-first day of December, except premiums received for reinsur-
ance assumed, without any deduction for dividends paid or deduction
on any other account, except for premiums returned upon cancelled
or reduced policies.

Provided. that any such insurance companies chartered by and doing
business solely in this State which are purely mutual and have no
capital stock, and are not designed to accumulate profits for the bene-
fit of, or pay dividends to, the members thereof, or any insurance com-
pany chartered by and doing business solely in this State, with a capital
stock not exceeding twenty-five thousand dollars and which pays losses
from assessments against its policvholders or members, shall pay a li-
cense tax of one per centum upon the gross amount of all premiums,
assessments, dues and fees collected, received or derived, or obligations
taken therefor. from business in this State during the year ending the
thirty-first day of December, without any reduction for dividends paid,
or deduction on any other account, except for premiums returned upon
cancelled or reduced policies.

Provided, further, that nothing herein shall be construed to apply
to mutual fire insurance companies chartered in this State and doing
a local business in this State, as defined by law, nor to industrial sick
benefit companies, as defined by law, nor to fraternal beneficiary asso-
ciations, as defined by law. And provided, further, that nothing herein
shall be construed to apply to the law providing that the expenses of
maintaining the insurance section of the bureau of insurance and bank-
ing shall be paid by the insurance companies doing business in this
State, and providing that the expense of keeping the bonds deposited
with the Treasurer of the State shall be paid by the insurance com-
pany depositing same.

This chapter shall not be construed as changing the law concerning
the taxation of reciprocal or interinsurance exchanges, mutual assess-
ment fire insurance companies, mutual insurance companies other than
life, nor any other class of insurance companies or insurance business
(including workmen’s compensation) which is otherwise specifically
taxed by law or specifically exempt from taxation.

2. An emergency existing, this act shall be in force from its pas-
sage.