CHAPTER 189

An Act to amend and reenact § 58-648 as amended, of the Code of
Virginia and to amend the Code of Virginia by adding a section
numbered 58-648.1, relating respectively to inapplicability of the
road tax on urban bus systems based on certain gross receipts and
computation of the road tax on urban bus systems based on certain
gross receipts, and to repeal §§ 58-646 to 58-659, inclusive, of the
Code of Virginia, relating to State license and property taxes on
motor vehicle transportation companies in cities and towns.

H 554

Approved March 9, 1954
Be it enacted by the General Assembly of Virginia:

1. That § 58-643 as amended, of the Code of Virginia be amended and
reenacted and the Code of Virginia be amended by adding a section num-
bered 58-643.1 as follows:

§ 58-6438. This article shall not apply to gross receipts taxable
under Article 4 * of this chapter nor to gross receipts of an urban bus
system derived from transporting passengers from a point within a city
or town to another point within the same city or town.

The provisions of this section shall apply for the tax year beginning
January first, nineteen hundred fifty-siz, and annually thereafter until
otherwise provided by law.

§ 58-648.1. An urban bus system which includes in addition to oper-
ations exempt by § 58-648 the transportation of passengers between con-
tiguous cities or towns or from points within a city or town to points
without said city or town, or both, shall be taxable on the gross recetpts
derived from such additional operations calculated as follows:

(1) The gross receipts derived from transporting passengers across
the corporate limits of contiguous cities or towns, which may be calcu-
lated by making periodic traffic counts and multiplying the number of
such passengers by the average fare collected from such passengers; and

(2) Such proportion of the gross receipts derived from all opera-
tions both within and without cities or towns in this State (exclusive of
the gross receipts derived from transporting passengers across the cor-
porate limits of contiguous cities or towns) as the total number of mtles
traveled by the vehicles of such urban bus system without cities or towns
bears to the total number of miles traveled by the vehicles of such urban
bus system both within and without cities or towns.

An urban bus system means a system that serves the public on routes
extending generally throughout the territory of a city or town and is
engaged in intracity or intratown operations. If an urban bus system
transports passengers over a route outside cities or towns and between
noncontiguous cities or towns in this State, the gross receipts derived
from such operations are subject to the tax imposed by § 58-638.

2. §§ 58-646 to 58-659, inclusive, of the Code of Virginia are repealed
effective December thirty-one, nineteen hundred fifty-five.