Chap. 469.—An ACT to amend and re-enact Section 198 of the Tax Code of Vir-
ginia, as heretofore amended, relating to slot machines. [S B 197]

Approved April 6, 1942

1. Beit enacted by the General Assembly of Virginia, That section
one hundred and ninety-eight of the Tax Code of Virginia, as hereto-
fore amended, be amended and re-enacted, as follows:

Section 198. 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 mer-
chandise, 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 is hereby levied a State
license tax of three dollars per year for each machine; 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 such candy vending machines as are operated on the prem-
ises of any person conducting any other lawful business, on which there
is hereby levied a State license tax of ten dollars per year for each such
machine; and except also vending machines operated on premises for
which a tobacco retailers’ license have been obtained and used solely for
the sale of cigarettes, on which there is hereby levied a State license tax
f three dollars per year for each machine; and except also weighing
nachines and machines used solely for the purpose of selling shoe
trings, chewing gum, peanuts or peanut candy or postage stamps on
vhich there is hereby levied a State license tax of one dollar per year
‘or each machine; and except also miniature pool tables, in the opera-
fon of which aickels or coins of larger denominations are used, on
which there is hereby levied a State license tax of ten dollars per year
yn each such coin-operated miniature pool table; and except also auto-
matic baggage or parcel checking machines or receptacles, which are
ised 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 receptacle that is operated on the coin-in-the-slot principle ; and on
amusement 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 sani-
tary 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 may 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 sticker:
aforesaid shall he prescribed by the State Tax Commissioner.

It shall be unlawful for any proprietor, owner, operator, batlee
licensee, or custodian of any slot machine, other than vending machine:
which do nothing except to vend merchandise, and other than machine:
which provide service only, knowingly to permit any person under th
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 placin;
a slot machine or slot machines with others, shall be deemed to be a slo
machine operator. Every slot machine operator, as herein defined, shal
pay for the privilege an annual State license tax of one thousand dollar:
The license tax imposed by this paragraph is not in lieu of, but is 1
addition to, the other license taxes imposed by this section; providec
however, that the slot machine operator's license tax levied by this pare
graph shall not be applicable to operators of weighing machines, autc
matic baggage or parcel checking machines, or receptacles, nor to vend-
ing 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 oper-
ators 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 regulations pre-
scribed by the said department, and the said operator shall, before com-
mencing operations in the State, deposit with the State Tax Commis-
sioner a bond to insure the proper payment of the taxes, the form, and
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 in-
corporated 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 machine under the ownership
and supervision of any State commission or State agency.