Chap. 182.—An ACT to amend Sections 171l-a and 174 of the Tax Code of Vir-
ginia, in relation to license taxes on wholesale merchandise brokers and com-
mission merchants and brokers. [fH B 316]

Approved March 11, 1942

1. Beit enacted by the General Assembly of Virginia, That sections
one hundred and seventy-one-a and one hundred and seventy-four of the
Tax Code of Virginia be amended and re-enacted so as to read as follows:

Section 171l-a. Brokers—Wholesale Merchandise Brokers Who
Sell Only to Wholesalers or Manufacturers, And Whose Gross Profits
Are Measured Principally By Commissions.—Every wholesale merchan-
dise broker dealing in food products and other commodities, who sells
only to wholesalers or manufacturers, and whose gross profits are meas-
ured principally by commissions, shall annually pay for the privilege of
doing such business a license tax of fifty dollars, provided the gross
commissions and gross profits of such wholesale merchandise broker for
the preceding year did not exceed one thousand dollars; but when the
gross commissions and gross profits exceeded one thousand dollars, the
tax shall be fifty dollars on the first one thousand dollars of gross com-
missions and gross profits, fifty cents per one hundred dollars on the next
nine thousand dollars of gross commissions and gross profits, and one
dollar per one hundred dollars on all gross commissions and gross profits
in excess of ten thousand dollars. The license tax on every such whole-
sale merchandise broker beginning business shall be the initial tax above
prescribed, plus a tax in accordance with the foregoing scale measured
by the gross commissions and gross profits which it is estimated he will
receive from the time he commences business to the following December
thirty-first. The license taxes prescribed by this section shall be in lieu
of a tax on the capital actually used or employed by every such wholesale
merchandise broker in the business described in this section. The word
“capital”, as herein used, shall be construed to mean the capital which,
but for this section, would be taxable for State purposes under the laws
of this State. This section shall apply to persons, firms and corporations.
This section, as hereby amended, shall be in force on and after the first
day of January, nineteen hundred and forty-three.

Section 174. Commission Merchants And Brokers.—Every person,
cHS. 182, 183] ACTS OF ASSEMBLY 230

firm or corporation, doing business in this State who receives or dis-
tributes provisions and merchandise, including flour, hay or grain, shipped
to such person, firm or corporation for distribution on account. of the
shipper, or who participates in the profits, ensuing from or accruing out
of the sales of such provisions or merchandise, including flour, hay or
grain, or who invoices such sales or collects the money therefor, shall be
deemed to be a broker who receives or distributes provisions and mer-
chandise, including flour, hay or grain.

Every person, firm or corporation, buying or selling for another any
kind of merchandise, on commission, except associations or organizations
of farmers, including produce exchanges, organized and maintained by
farmers for mutual help in the marketing of their produce and not for
profit, shall be a commission merchant. Any person, firm or corporation
licensed as a commission merchant may sell any personal property which
may be left with, or consigned to him for sale, except gold or silver coin,
bonds, certificates of public or private debts or other securities ; provided,
however, that any such merchant may sell gold or silver coin, certificates
of public or private debts or other securities, by taking out the license
therefor prescribed in the case of stock brokers.

Every person, firm or corporation shall pay for the privilege of
transacting the business of a commission merchant or broker the sum of
twenty-five dollars, provided the commissions for the preceding year did
not exceed two thousand dollars, but when the commissions exceeded two
thousand dollars, the tax shall be twenty-five dollars on the first two
thousand dollars of commissions, fifty cents per one hundred dollars on
the next. eight thousand dollars of commissions, and one dollar per one
hundred dollars on all commissions in excess of ten thousand dollars;
and if the license is to include the privilege of selling gold or silver coins,
bonds, certificates of public or private debts, or other securities, there
shall be paid, in addition, the amounts required in each case to be paid
by stock brokers and in like manner. ,

The license tax on every commission merchant or broker beginning
business shall be the initial tax above prescribed, plus a tax in accordance
with the foregoing scale measured by the commissions which it is esti-
mated he will receive from the time he commences business to the follow-
ing December thirty-first. .

This section, as hereby amended, shall be in force on and after the
first day of January, nineteen hundred and forty-three.