Chap. 33.—An ACT to amend the Tax Code of Virginia by adding a new section
thereto, to be numbered Section 216-b, in relation to the taxation of persons,
firms, associations and corporations engaged in the business of operating motor
vehicles for the transportation of persons or property, or both, over fixed routes
within the limits of any city or town within this State. [H B 21]

Approved February 12, 1940

1. Be it enacted by the General Assembly of Virginia, That the
Tax Code of Virginia be amended by adding a new section thereto,
which new section shall be numbered two hundred and sixteen-b,
and which shall read as follows: _
Section 216-b. Motor bus transportation companies in cities
and towns.—All corporations engaged in the business of operating
motor vehicles for the transportation of persons or property, or both,
over fixed routes within the limits of any city or town 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, tangible and intangible, (including rolling stock) used
in such business, as of the beginning of the first day of January pre-
ceding, showing particularly in what city, town or county and school
district therein such. property is located. Each such corporation
shall also report its gross transportation receipts from such motor
vehicle operations in this State for the twelve months ending Decem-
ber thirty-first next preceding.

The report required herein shall be made on forms and in the
manner prescribed by the State Corporation Commission and shall
be certified by the oath of the president or other proper 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 license
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 the license tax
provided for herein, and shall in the execution of such duties be au-
thorized and empowered to send for persons and papers.

The State Corporation Commission shall assess upon said prop-
erty the State taxes, if any, imposed thereon by law.

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

It shall be the duty of the clerk of the State Corporation Com-
mission 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 of
the value thereof made by the State Corporation Commission of such
corporation’s real and tangible personal 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 by the proper local authorities.

Any such corporation failing to pay the State taxes 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 taxes.

The State tax on the intangible personal property (other than
shares of stock, and bonds issued by counties, cities and towns o1
other political subdivisions of this State) owned by every corporatior
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 corporation coming unde:
the provisions of this section shall be twenty cents on every one
hundred dollars of the 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 corpora-
tion 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 in such localities, which taxes shall be
paid in the same manner and shall be subject to the same penalties
for non-payment as is provided by law for other real and tangible
personal property in the county, city or town in which said property
is located.

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

Each corporation coming within the provisions of this section
shall pay to the State an annual State license tax for the privilege of
engaging in the business herein described equal to one and six-tenths
per centum upon the gross transportation receipts from such business
for the year ending December thirty-first next preceding.

There shall not be included in the gross transportation receipts
upon which the license tax imposed on any corporation by this section
is computed, any gross transportation receipts from motor vehicles
transporting persons or property within the limits of any city or
town and operated by such corporation as an auxiliary to or in con-
nection with its electric railway operations where such gross trans-
portation receipts are included in computing the franchise tax imposed
upon and paid by such corporation under section two hundred and
fifteen and two hundred and sixteen of this chapter, it being the
intent of this section that as to such corporations the license tax
herein imposed shall apply only to operation of motor vehicles for
the transportation of persons and property within cities and towns
where such motor vehicles are not operated as an auxiliary to or in
connection with the electric-railway operations of such corporations
and where the gross transportation receipts from the operation of
such motor vehicles are not included in the base of the franchise tax
imposed upon and paid by such corporation under sections two hun-
dred and fifteen and two hundred and sixteen of this chapter.

Nor shall there be included in the gross receipts upon which the
license tax imposed on any corporation by this section is computed,
any gross transportation receipts from motor vehicles operated by
such corporation as a motor vehicle carrier as defined by law where
such corporation is subject to and pays the road tax imposed by law
on such gross transportation receipts, it being the intent of this
section that as to such motor vehicle carriers the license tax herein
imposed shall apply only to the gross transportation receipts from the
transportation of persons or property within the limits of cities or
towns.

No state tax, county, city, town or district levy shall be laid on
the net income of any corporation from its business coming within
the provisions of this section, but nothing herein shall be construed
to prohibit any city or town from imposing a license tax upon any
such corporation for the privilege of engaging in business in such city
or town; nor shall anything herein annul or interfere with or prevent
any contract or agreement by ordinance between such corporations
and municipalities as to compensation for the use of the streets or
alleys of such municipalities by such corporations.

The provisions of this section shall not apply to the operation of
taxicabs or other motor vehicles performing a bona fide taxicab
service, having a capacity of not more than six passengers and not
operated on a regular route or between fixed termini.

The provisions of this section shall apply to every person, firm
or association engaged in the business of operating motor vehicles for
the transportation of persons or property over fixed routes within
the limits of any city or town in this State.

This section insofar as it relates to property taxes shall apply to
the tax year nineteen hundred and forty and to every tax year there-
after until otherwise provided by law; and as to license taxes it shall
be effective for the period beginning July first, nineteen hundred and
forty, and expiring December thirty-first, nineteen hundred and forty,
and for the license year beginning January first, nineteen hundred
and forty-one and every license year thereafter until otherwise pro-
vided by law; and for the period beginning July first, nineteen hun-
dred and forty and expiring December thirty-first, nineteen hundred
and forty the license tax imposed hereby shall be equal to one and
six-tenths per centum upon the gross transportation receipts from
the business herein described for the calendar year nineteen hundred
and thirty-nine; and in nineteen hundred and forty the reports re-
quired to be made to the State Corporation Commission shall be
made on or before July fifteenth, nineteen hundred and forty.

Nothing herein contained shall exempt any such person, firm,
association or corporation from motor vehicle license taxes or motor
vehicle fuel taxes.