Chap. 196.—An ACT to amend and re-enact Sections 35, 35-b, 35-d, 36, and 36-c of
Chapter 342 of the Acts of Assembly of 1932, as heretofore amended by Chap-
ter 377 of the Acts of 1942, said chapters of said acts and amendments thereto
being known and designated as the “Motor Vehicle Code of Virginia”, and to
further amend said Act by adding thereto a new section to said Motor Vehicle
Code designated as Section 35-aa, said sections amended and added relating
to fees for registration, licenses of motor vehicles, reduction of fees after certain
periods, registration of dealers; fees therefor; gross receipts taxes upon cer-
tain motor vehicle carriers, registration of certain vehicles; fees therefor ;
certain reciprocal agreements; to amend and re-enact Section 5 of Chapter 212
of the Acts of 1932, as amended, and being known as the “Motor Fuel Tax
Act”; and to amend ‘and re-enact Section 4 of Chapter 307 of the Acts of As-
sembly of 1940, known as the “Use Fuel Tax Act’, the latter two sections
relating to the taxes upon motor fuels; and to amend and re-enact Chapter
153 of the Acts of Assembly of nineteen hundred and forty-two relating to the
apportionment of the motor fuels tax. [H B 235]

Approved March 22, 1946

Be it enacted by the General Assembly of Virginia:

1. That sections thirty-five, thirty-five-b, thirty-five-d, thirty-six,
and thirty-six-c of chapter three hundred forty-two of the Acts of As-
sembly of nineteen hundred thirty-two, as heretofore amended, section
five of chapter two hundred twelve of the Acts of Assembly of nineteen
hundred thirty-two, as amended, and section four of chapter three hun-
dred seven of the Acts of Assembly of nineteen hundred forty, and that
chapter one hundred fifty-three of the Acts of Assembly of nineteen hun-
dred forty-two, are hereby amended and re-enacted, as follows; and said
act of nineteen hundred thirty-two is further amended by adding a new
section thereto designated as section thirty-five-aa, as hereinafter set
forth:

Section 35. Registration of passenger carrying vehicles; fees there-
for—(a) All motor vehicles, trailers, and semi-trailers designed and
used for the transportation of passengers shall be licensed according to
weight, and the manufacturer’s shipping weight shall be used in deter-
mining the license fees herein prescribed. Except as provided in section
thirty-five-aa after March fifteenth, nineteen hundred forty-seven, and
except as hereinafter provided, the fee for the certificate of registration
and license plates, to be paid to the Commissioner by the owner of the
motor vehicle, shall be seventy cents per hundred pounds of weight or
major fraction thereof; provided that no fee for an automobile shall be
less than six dollars ($6.00) per year, and no fee for a motorcycle shall
be less than three dollars ($3.00) per year and two dollars ($2.00) ad-
ditional for each side car; provided further, that the fees for the certifi-
cate of registration and license plates to be paid by the owner of any
private motor vehicle, other than a motorcycle, designed and used for the
transportation of passengers not for compensation shall be thirty cents per
hundred pounds of weight, or major fraction thereof.

(b) For the operation of each motor vehicle, trailer or semi-trailer
kept or used for rent or hire for transportation of passengers, or op-
erated by a contract carrier by motor vehicle of passengers operating, or
which should operate, under a permit issued by the State Corporation
Commission as provided by law, or operated by a contract carrier by
motor vehicle of passengers operating, or which should operate, under
a permit issued by the Interstate Commerce Commission as provided by
law, there shall be paid to the Commissioner in addition to the fees pro-
vided in subsection (a) of this section, the sum of five dollars ($5.00) for
each revenue producing seat.

(c) Persons who operate as common carriers or restricted com-
mon carriers by motor vehicle of passengers under certificates issued by
the State Corporation Commission or by the Interstate Commerce Com-
mission, may use any of their regularly licensed vehicles, of a seating
capacity of more than twelve, for infrequent trips, for the transportation
of special parties, either on or off their regular routes, upon the written
permission of the Commissioner, and upon payment to the Commissioner
of a fee of five dollars (5.00) for each such trip, for each vehicle so em-
ployed. Every such trip shall be made in accordance with such reasonable
rules and regulations prescribed by the State Corporation Commission
as may elsewhere be provided for by law.

(d) Every person engaged in hiring or renting motor vehicles for
the transportation of passengers or property and every contract carrier
by motor vehicle of passengers or property who operates, or who’ should
operate, under a permit issued by the State Corporation Commission or
by the Interstate Cornmerce Commission, as provided by law, shall fur-
nish to the Commissioner, whenever required so to do, a list of motor
vehicles used or employed in such business, with a description thereof,
when and as may be required by the Commissioner.

(e) The fees required by subsection (b) of this section to be paid
or certificates of registration and license plates for the operation of motor
ehicles used for rent or hire shall not be required for the operation of
ny motor vehicle with a normal seating capacity of not more than six
dult persons while used not for profit in transporting persons who, as a
ommon undertaking, bear or agree to bear all or a part of the actual
osts of such operation; and for the purpose of subsection (a) of this
ection every such motor vehicle shall be treated as a private motor ve-
icle for which the fee for the annual certificate of registration and li-
onse plates shall be thirty cents per hundred pounds of weight, or major
‘action thereof. Provided that the fee for the annual certificate of reg-
tration and license plates on each contract school bus shall be thirty
nts per hundred pounds of weight, or major fraction thereof.

(f}) The Commissioner may issue appropriately designated tags for
issenger carrying vehicles to applicants who keep or use such vehicles
r rent or hire for the transportation of passengers for private trips.
he Commissioner shall issue appropriately designated tags to appli-
nts who operate as contract carriers or common carriers or restricted
mmon carriers by motor vehicle of passengers under permits or certifi-
tes issued by the State Corporation Commission or by the Interstate
ommerce Commission, as provided by law.

(zg) Any person who operates, or who permits the operation of,
y motor vehicle, trailer, or semi-trailer over any highway of this State
- the transportation of passengers for rent or for hire, or as a contract
rrier or common carrier or restricted common carrier by motor vehicle
of passengers operating, or which should operate, under a permit or cer-
tificate issued by the State Corporation Commission or by the Interstate
Commerce Commission as provided by law, without first having paid to
the Commissioner the fee prescribed by this section, shall be guilty of a
misdemeanor and, upon conviction thereof, shall be punished by a fine
of not less than fifty dollars ($50.00) nor more than five hundred dollars
($500.00), or by imprisonment in jail for a period not to exceed six
months, or by both such fine and imprisonment.

(h) This amendment and re-enactment of section thirty-five shall
become effective July first, nineteen hundred forty-six.

Section 35-b. Fees reduced after certain periods.—One-half of the
annual fees prescribed by sections thirty-five, thirty-five-a and thirty-
five-aa shall be collected whenever any registration certificate and license
plates are issued during the period beginning on the first day of October
in any year, and ending on the fifteenth day of January in the same li-
cense year, and one-third of such fees shall be collected whenever any
registration certificate and license plates are issued after the fifteenth day
of January in any license year.

Section 35-d. Registration of dealers, et cetera; fees therefor.—
Every manufacturer, agent or dealer in motor vehicles, trailers or semi-
trailers, on or before the first day of April in each year, or before he com-
mences to operate vehicles to be sold by him, shall make application to
the Commissioner for a dealer’s certificate of registration and license.
The application shall state the make of the machines handled by the
manufacturer, agent or dealer. On the payment of the fee of twenty-five
dollars a certificate of registration and license shall be issued to the dealer
in such form as may be prescribed by the Commissioner. For such fee the
Commissioner shall issue to such dealer two (2) sets of license plates, and
for each additional set in excess of two (2) a fee of six dollars ($6.00)
per set shall be paid provided that the fee for a motorcycle dealer shall
be fifteen dollars ($15.00) for the first three (3) sets of plates and four
dollars ($4.00) for each additional set of plates. If the application of
such manufacturer, agent, or dealer in motor vehicles, as herein provided,
be made after the first day of December of any year, then the amount or
amounts he shall be required to pay for the certificate of registration and
license, provided for hereunder, shall be half, only, of the fee hereir
prescribed.

It shall be unlawful for any such manufacturer, dealer, agent, o1
any other person to use such license plates otherwise than on motor ve.
hicles, trailers and semi-trailers used in connection with their business
provided that dealer's tags shall not be used on motor vehicles for th
use or operation of which dealers charge or receive compensation, such a:
wrecking cranes or other service motor vehicles. Any person wh«
violates any provision of this section is guilty of a misdemeanor and
upon conviction thereof shall be punished by a fine of not less than twen
tv-five dollars ($25.00), and not more than one hundred dollar
($100.00).

Section 36. Gross receipts tax.—(a) Except as hereinafter other
wise provided, every person who operates, or causes to be operated, o:
any highway in Virginia, any motor vehicle, trailer or semi-trailer as a
common carrier of passengers for compensation, shall pay quarterly to
the State Treasurer, on or before the fifteenth day of April, July, Octo-
ber and January of each year, in addition to any other fees and taxes im-
posed by law upon motor vehicles, trailers and semi-trailers, and upon
the operation thereof, and in addition to any motor fuel tax paid or pay-
able by such person, a road tax calculated on the gross receipts derived
from such operations during the quarter year ending with the preceding
month, according to the following schedule:

(1) Two per centum (2%) of the gross receipts derived by such
person from all intrastate operations ; and

(2) Two per centum (2%) of such proportion of the gross re-
ceipts derived by such person from all interstate operations as the total
number of miles traveled in interstate operations by the vehicle of such
person on the public highways of Virginia bears to the total number of
miles traveled in interstate operations by the vehicles of such person both
within and without Virginia, exclusive in each case of the miles traveled
in Virginia on any street maintained exclusively by any city or town.
All taxes so collected shall be credited to the highway maintenance and
construction fund.

(b) Each person subject to the tax imposed by subsection (a) of
this section and operating exclusively as a common carrier shall be en-
titled to an annual exemption of one thousand dollars ($1,000.00).

(c) Every person subject to the tax imposed by subsection (a) of
this section shall make to the State Corporation Commission, hereinafter
called the Commission, such reports, with respect to the operations of
motor vehicles, trailers and semi-trailers operated or caused to be op-
erated by him, as the Commission may require, from time to time; pro-
vided, that no person shall be required to make any such report unless
and until his gross receipts for the calendar year have exceeded the
amount upon which he 1s exempted pursuant to subsection (b) of this
section.

(d) The Commission, and its authorized agents and representatives,
shall have the right, at any reasonable time, to inspect the books and
records of any person engaged in any of the operations described in sub-
section (a) of this section.

(e) The Commission may, after a hearing had upon notice, duly
served not less than ten days prior to the date set for such hearing, im-
pose a penalty, not exceeding five hundred dollars ($500.00), upon any
person who violates any provision of this section, or who fails to comply
with any regulation of the Commission promulgated pursuant to this
section, which penalty shall be collectible by the process of the Commis-
sion as provided by law. In addition to imposing such penalty, or with-
out imposing any penalty, the Commission may suspend or revoke any
certificate or other evidence of right issued by the Commission which
the person so found in default holds. Any person convicted under this
subsection (e) shall have the right of appeal to the Supreme Court of
Appeals as in other case of appeal of right from the Commission.

({) This section thirty-six shall not apply to motor vehicles en-
gaged exclusively in transporting persons solely within the limits of any
city or town in this State, nor to any person, firm or corporation operat-
ing taxicabs or passenger motor vehicles equipped with taximeters or to
taxicabs or passenger motor vehicles without taximeters operated at a
flat rate whose business originates wholly within the corporate limits of
any city or town in this State, but who may occasionally operate beyond
said limits, nor to public passenger vehicles offered for hire and not con-
forming to the definition of a taxicab.

The amendment and re-enactment of this section thirty-six shall
become effective March fifteenth, nineteen hundred forty-seven.

Section 35-aa. Registration of common and contract carriers of
property ; fees therefore—(a) Every person who operates, or causes to
be operated, on the highways of Virginia, any motor vehicle, trailer or
semi-trailer for the transportation of property for compensation, whether
for rent or for hire as a contract carrier, shall pay to the Commissioner
for the certificates of registration and license plates on each such vehicle
a fee according to the schedule of fees herein set forth upon the gross
weight as defined in section thirty-five-a; provided that in no case shall
the fee be less than eighteen dollars.

Gross Weight Fee Per Hundred
Groups Pounds of Gross
(Pounds) Weight
10,000 and less 18 cents
10,001-11.000 191% cents
11,001-12,000 21 ~—scents
12,001-13,000 22144 cents
13.001-14,000 2+ cents
14,001-15,000 251% cents
15,001-16,000 27 ~— cents
16,001-17.000 30 ~—s cents
17.001-18,000 33 cents
18,001-19,000 36 cents
19,001-20,000 39s cents
20),001-21 000 42 cents
21.001-22,000 45 cents
22.001-23,000 48 cents
23,.001-24,000 51 cents
24,001-25.000 54 cents
25,001-26,000 57 cents
26,001-27 000 60 cents
27 O01-28,000 63 cents
28 001 -29,000 66 cents
29 001-40 000 67% cents
40,001-45,000 75 cents
45.001-50.000 90 _—cents

(b) Every person who operates, or causes to be operated, on the
highways of Virginia, any motor vehicle, trailer or semi-trailer for the
transportation of property for compensation as a common carrier, shall
pay to the Commissioner for the certificates of registration and license
on each such vehicle a fee according to the schedule of fees herein
th upon the gross weight as defined in section thirty-five-a; pro-
that in no case shall the fee be less than thirty dollars.

Gross Weight Fee Per Hundred
Groups Pounds of Gross
(Pounds) Weight
10,000 and less 30 ~—s cents
10,001-11,000 32! cents
11,001-12,000 35 cents
12,001-13,000 37 cents
13,001-14,000 40 scents
14,001-15,000 4214 cents
15,001-16,000 45 _ cents
16,001-17,000 50 scents
17,001-18,000 55 _ cents
18,001-19,000 60 ~—s cents
19,001-20,000 65 cents
20,001-21,000 70 scents
21,001-22,000 75 ~—scents
22,001-23,000 80 ~—s cents
23,001-24,000 85 cents
24,001-25,000 90 —cents
25,001-26,000 95 _— cents
26,001-27 ,000 100 ~—s cents
27 ,001-28,000 105 scents
28,001-29,000 110 —_—scents
29 ,001-40,000 112'% cents
40,001-45,000 125 cents
45,001-50,000 150 ~— cents

-) The provisions of this section shall not apply to for-hire, com-
r contract carriers of property who operate less than three motor
‘s, trailers or semi-trailers of the one and one-half ton rating or
hich do not exceed fifteen thousand pounds gross load on the road
and whose gross yearly earnings from the operations of said ve-
do not exceed five thousand dollars, and the provisions of this act
eference to the placing of such owners under the regulation of the
Corporation Commission shall not apply, but in all other respects
nefits and obligations of this act shall apply to such carriers.

1) The amendment and re-enactment of this section thirty-five-aa
ecome effective March fifteenth, nineteen hundred forty-seven.
ection 36-c. Governor may make certain reciprocal agreements ;
city board created, its powers prescribed.—(a) There is hereby
shed a board, to be known as the Reciprocity Board, hereinafter
the Board. The Board shall consist of three ex-officio members,
y, the principal administrative officer of the agency whose duty it is
1inister the provisions of this act relating to the registration and
ng of motor vehicles, the State Highway Commissioner, and one
members of the State Corporation Commission who shall be desig-
by the State Corporation Commission. A majority of the members
of the Board shall constitute a quorum, and the action of the majority of
the members in attendance at any meeting shall be the action of the Board.
Whenever a member of the Board is absent from a meeting of the Board,
he may designate one of his assistants or employees to attend on his be-
half. Any such assistant or employee shall be entitled to participate in
the discussions and proceedings of the Board, but he shall not be entitled
to vote.

(b) The Governor shall have the power, with the advice of the
Board, to enter into reciprocal agreements, on behalf of the Common-
wealth, with the appropriate authorities of any state in the United States,
or of the District of Columbia, with respect to all taxes imposed by this
State and by any such other state on motor vehicles, or on the operation
of motor vehicles, or upon any transaction incident to the operation of
motor vehicles.

(c) All authority heretofore vested in the Director of the Division
of Motor Vehicles with reference to the making of reciprocal agree-
ments, except with respect to chauffeurs’ and operators’ permits and
licenses, is hereby transferred to, and vested in the Governor, subject,
however, to the provisions of paragraphs (a) and (b) next above.

(d) All agreements entered into by the Governor with respect to
any subject of reciprocity as to which provision is expressly made by
statute shall conform to the provisions of such statute. As to any other
subject of reciprocity appropriate to the powers vested in the Governor
by this section, the Governor shall have full authority, with the advice of
the Board, to agree to such terms and conditions as in his judgment are
best calculated to promote the interests of the Commonwealth.

Section 5 of Chapter 212, Acts 1932

Section 5. Amount of tax; reports, payments; exemptions.—(a)
There is hereby levied a tax of six cents per gallon on all motor fuel as
herein defined, which is sold and delivered or used in this State, including
all motor fuel as herein defined, sold by or through post exchanges, ship
stores, ship service stores, commissaries, filling stations, licensed traders
and other similar agencies located on United States military or other
reservations, within the boundaries of the State, when such fuels are not
for the exclusive use of the United States, and is not under the protection
of the interstate commerce clause of the Constitution of the United States;
provided, that the tax herein imposed and assessed shall be collected by
and paid to the State of Virginia but once in respect to any motor fuel.
Nothing herein shall be construed to exempt from this tax any dealer in
motor fuel on the motor fuel used in making such distribution. The tax
herein levied shall be collected in the manner hereinafter provided.

(b) On or before the last day of each calendar month, each dealer
in motor fuel shall render to the Commissioner a statement on forms pre-
pared and furnished by the Commissioner, which shall be sworn to by
one of the principal officers in the case of domestic corporations, or by
the resident general agent or attorney-in-fact; by chief accountant or
officer in case of foreign corporations; by the managing agent or owner
in case of a firm or association of persons; or by the dealer in all other
cases; which statement shall show the quantity of motor fuel on hand
on the first and last day of the preceding calendar month; the quantity of
motor fuel received, produced, manufactured, refined or compounded
during the preceding calendar month; and the quantities of motor fuel
sold and delivered or used within the State of Virginia during the preced-
ing calendar month, and such dealer shall at the time of rendering such
report, pay to the Commissioner the tax or taxes herein levied on all mo-
tor fuel sold and delivered or used within the State of Virginia during
the preceding calendar month. Provided that no dealer shall pay such
tax on motor fuel received by such dealer from a point within the State,
from another duly licensed dealer who has paid or assumed the payment
of such tax.

(c) Bills shall be rendered to all purchasers of motor fuels by deal-
ers selling the same. Such bills shall contain a statement thereon in a
conspicuous place that the liability to the State for the tax or taxes here-
by imposed has been assumed, and that the dealer will pay the tax or taxes
thereon on or before the last day of the following month. |

(d) The tax shall be payable upon motor fuel sold and delivered
to or used by the State of Virginia and every political subdivision thereof.

(e) Motor fuel used by the United States or any of the govern-
mental agencies thereof shall not be subject to tax hereunder.

Section 4, Chapter 307, Acts 1940

Section 4. Levy of tax and exemptions.—A tax is hereby imposed
on all users of fuel upon the use of such fuel by any person within this
State only when such fuel is used in an internal combustion engine for
the generation of power to propel motor vehicles of any kind or character
on the public highways at the rate of six cents per gallon, to be computed
in the manner hereinafter set forth.

Fuel used by the United States or any of the governmental agencies
thereof shall not be subject to tax hereunder.

Chapter 153, Acts 1942

Section 4. From and after July first, nineteen hundred thirty-two,
the amount on hand from, and the proceeds of, the motor vehicle fuel tax
available for apportionment among the several counties of the State under
the law with reference to the levy, collection and expenditure of motor
vehicle fuel taxes, shall be set aside as a fund for the secondary system of
State highways and disbursed by the State under the supervision of the
State Highway Commissioner for the maintenance and improvement, in-
cluding construction and reconstruction, of the secondary system of State
highways. An amount equal to the aggregate of such tax apportion-
ment among the several counties of the State for the calendar year nine-
teen hundred thirty-one, including the additional amount for equalization
as provided by law for that year, shall be allocated for expenditure and
expended in the maintenance and improvement, including construction
and reconstruction, of the secondary system of State highways in the
several counties of the State, upon the same basis of apportionment upon
which the motor vehicle fuel tax was apportioned among the several coun-
ties of the State for the calendar year of nineteen hundred thirty-one, in-
cluding such equalization. The State Highway Commission is authorized
and directed to allocate during each year from State Highway main-
tenance or construction funds, such sums, not less than two million dol-
lars ($2,000,000), as it may deem reasonable and necessary for the best
interests of the several counties of the State and of the State at large, to
be expended under the provisions of this act, together with any additional
amounts available therefor, in the maintenance and improvement, in-
cluding construction and reconstruction of the secondary system of State
highways as may be allocated by the State Highway Commission; pro-
vided, however, that all funds spent upon the secondary system of high-
ways for the maintenance and improvement, including construction and
reconstruction, shall not be less than thirty per centum of the funds avail-
able to the State Highway Commission in any one fiscal year for main-
tenance and improvement, including construction and reconstruction,
for both the primary and secondary systems; and provided further that
in addition to the sum of twelve million and five hundred thousand dol-
lars appropriated in item three hundred of House Bill twenty-five for
maintenance and improvement, including construction and reconstruction
of the secondary system of highways, an additional sum of two million
and five hundred thousand dollars ($2,500,000.00) of the revenue pro-
duced by the increase of one cent per gallon on motor fuel imposed by
this act also shall be expended in each fiscal year on the roads in the
secondary system, and provided further that the counties of Henrico,
Arlington and Warwick shall also receive their proportionate share of the
revenue produced by the increases of one cent per gallon on motor fuel
imposed by this act upon the same basis of apportionment upon which the
motor vehicle fuel tax was apportioned among the several counties of the
State for the calendar year nineteen hundred thirty-one, and provided
further that the State Highway Commission shall expend such sums upon
the secondary system of highways as shall be necessary to completely and
adequately maintain the said secondary system of highways which said
expenditure for maintenance and construction of the said secondary
system of highways shall be at least the sum of eight million and five hun-
dred thousand dollars in each fiscal year.