Chap. 116.—An ACT to amend and re-enact Section 198 of the Tax Code of Vir-
_. ginia, as heretofore amended, relating to slot machines. [H B 254]

Approved March 6, 1942

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

Section 198. Slot machines—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 merchandise, 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 1s
hereby levied a State license tax of three dollars per year for each ma-
chine; and except such vending machines as are used solely for the sale
of candy and operated on the premises of moving picture or other theaters,
on which there is hereby levied a State license tax of five dollars per
year for each such machine; and except also vending machines operated
on premises for which a tobacco retailer’s license has 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, peanut candy 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 nickels or coins of larger denominations are used, on
which thére 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 fifteen cents per year for each re-
ceptacle that is operated on the coin-in-the-slot principle; and on amuse-
ment 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 con-
strued as permitting any such person, firm or corporation to keep, main-
tain, 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, or to machines vending
sanitary napkins.

Neither the State Tax Commissioner nor any commissioner. of
revenue shall issue any license under this section for slot machines which
are unlawful under the provisions of section forty-six hundred and
ninety-four-a of the Code of Virginia.

The State Tax Commissioner mav prepare and furnish to the com-
missioners of the revenue stickers which, when signed by the commis-
sioner 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 Commissioner.

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 machines
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, or who owns one or more slot
machines shall be deemed to be a slot machine operator. Every slot ma-
chine operator, as herein defined, 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 oper-
ator’s license tax levied by this paragraph shall not be applicable to
operators of weighing machines, automatic baggage or parcel checking
machines, or receptacles, nor to vending machines which machines are so
constructed as to do nothing but vend merchandise or postage stamps, or
provide service only, nor to operators of coin operated musical machines
or musical devices that operate on the coin-in-the-slot principle; nor to
operators of viewing machines or photomat machines; provided further,
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 regula-
tions prescribed by the said department, and the said operator shall, before
commencing operations in the State, deposit with the State Tax Commis-
sioner a bond to insure the proper payment of the taxes, the form, and
cus. 116,:117] ACTS OF ASSEMBLY 157

amount of the bond to be determined 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 otherwise
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 Commonwealth.

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 incor-
porated 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.