CHAPTER 672

An Act to amend and reenact § 58-86.4 of the Code of Virginia, as
amended, relating to certain credits allowed on income tax. tH
592

Approved April 7, 1954
Be it enacted by the General Assembly of Virginia:

1. That § 58-86.4 of the Code of Virginia, as amended, be amended and
reenacted as follows:

§ 58-86.4. The report submitted to the Governor on August first,
nineteen hundred and fifty-two, and on August first of each year there-
after shall show the total amount of the credits allowed under § 58-86.3
or under this section during the fiscal year of the Commonwealth ending
on June thirtieth of the year in which the report is submitted in addition
to showing the information required by § 58-86.2.

If the report submitted to the Governor by the Comptroller on
August first, nineteen hundred and fifty-two, under the provisions of
§ 58-86.2 shows that the amounts received into the State treasury during
the fiscal year of the Commonwealth ending on June thirtieth, nineteen
hundred and fifty-two, from the sources specified in § 58-86.2, that is to
Say, general fund revenues, exceeds the amount shown in the budget for
the biennium beginning July first, nineteen hundred and fifty-two, sub-
mitted to the General Assembly by the Governor, as estimated to be
received from the said sources for the said fiscal year, then, each indi-
vidual and fiduciary liable for State income taxes under the provisions
of this chapter shall be entitled to a credit upon the State income tax of
such individual or fiduciary otherwise payable by him for the calendar
year nineteen hundred and fifty-one or for his fiscal year beginning in
the calendar year nineteen hundred and fifty-one and each corporation
liable for State income taxes under the provisions of this chapter shall
be entitled to a credit upon the State income tax of such corporation
otherwise payable by it for the calendar year nineteen hundred and fifty-
two or for its fiscal year beginning in the calendar year nineteen hundred
and fifty-two, provided, the amount of such excess is at least five per
centum of the amounts shown in the said budget as estimated to be
received from income taxes on individuals and corporations for the fiscal
year of the Commonwealth ending June thirtieth, nineteen hundred and
fifty-three. The credit to be allowed shall be the percentage, disregard-
ing fractions of one per centum, which the amount of such excess is of
the amount shown in the said budget as estimated to be received from
the income tax on individuals and corporations for the fiscal year of the
Commonwealth ending June thirtieth, nineteen hundred and fifty-three.

If the report submitted to the Governor by the Comptroller on
August first, nineteen hundred and fifty-three, or * August * one, *
nineteen hundred and fifty-four, under the provisions of § 58-86.2 shows
that the amounts received into the State treasury during the fiscal year
of the Commonwealth ending on June thirtieth of * that year in which
the report is submitted from the sources specified in § 58-86.2, that
is to say, general fund revenues, plus the total of the credits allowed
during such fiscal year under the provisions of this section exceeds
the amount shown in the biennial budget submitted to the General
Assembly by the Governor covering the recommended appropriations for
such fiscal year, as estimated to be received from the said sources for
the said fiscal year, then, each individual and fiduciary liable for State
income taxes under the provisions of this chapter shall be entitled to a
credit upon the State income tax of such individual or fiduciary other-
wise payable by him for the calendar year preceding the year in which
such report is submitted or for his fiscal year beginning in such calendar
year, and each corporation liable for State income taxes under the pro-
visions of this chapter shall be entitled to a credit upon the State income
tax of such corporation otherwise payable by it for the calendar year in
which such report is submitted, or for its fiscal year beginning in such
calendar year, provided the amount of such excess is at least five per
centum of the amount shown in the said budget as estimated to be
received from income taxes on individuals and corporations for the fiscal
year of the Commonwealth beginning July first of the year in which the
report is submitted. The credit to be allowed shall be the percentage,
disregarding fractions of one per centum, which the amount of such
excess is of the amount shown in the said budget as estimated to be
received from income tax on individuals and corporations for the fiscal
year of the Commonwealth beginning July first of the year in which the
report is submitted.

If the report submitted to the Governor by the Comptroller on
August first, nineteen hundred and fifty-five, or on August first in any
year thereafter, under the provisions of § 58-86.2 shows that the amounts
received into the State treasury during the fiscal year of the Common-
wealth ending on June thirtieth of that year in which the report is sub-
mitted from the sources specified in § 58-86.2, that is to say, general
fund revenues, plus the total of the credits allowed during such fiscal
year under the provisions of this section exceeds the amount shown in
the biennial budget submitted to the General Assembly by the Governor
covering the recommended appropriations for such fiscal year, as esti-
mated to be received from the said sources for the said fiscal year, then,
each individual and fiduciary liable for State income taxes under the pro-
visions of this chapter shall be entitled to a credit upon the State income
tax of such individual or fiduciary otherwise payable by him for the
calendar year preceding the year in which such report is submitted or
for his fiscal year beginning in such calendar year, and each corporation
liable for State income taxes under the provisions of this chapter shall
be entitled to a credit upon the State income tax of such corporation
otherwise payable by it for the calendar year in which such report ts
submitted, or for its fiscal year beginning in such calendar year, pro-
vided the amount of such excess is at least ten per centum of the amount
shown in the said budget as estimated to be received from income taxes
on individuals and corporations for the fiscal year of the Commonwealth
beginning July first of the year in which the report 1s submitted. The
credit to be allowed shall be the percentage in excess of five per centum,
disregarding fractions of one per centum, which the amount of such
excess 1s of the amount shown in the said budget as estimated to be
received from income tax on individuals and corporations for the fiscal
year of the Commonwealth beginning July first of the year in which the
report is submitted.

The word “‘tax’’, as used in this article, includes the automatic pen-
alty imposed by law on an individual or a fiduciary for his failure to file
his return within the time prescribed by law, but it does not include the
penalty imposed by law for his failure to pay his tax within the time
prescribed by law.

Any individual or fiduciary reporting on a fiscal year basis who was
not entitled to the full twenty per centum income tax reduction credit
proclaimed by the Governor in August, nineteen hundred and fifty-one,
for the taxable year nineteen hundred and fifty, under § 58-86.3, because
one or more of the months of the fiscal year of the individual or fiduciary
fell in the calendar year nineteen hundred and forty-nine, is hereby
declared to be entitled on his income tax for the taxable year nineteen
hundred and fifty-one, that is to say, for his fiscal year ending in the
calendar year nineteen hundred and fifty-one, to that proportion of a
credit of twenty per centum of such tax as the number of months of the
calendar year nineteen hundred and fifty which was not included in the
whole fiscal year of the individual or fiduciary ending in the calendar
year nineteen hundred and fifty, bears to the whole number of months
of the fiscal year of the individual or fiduciary ending in the calendar
year nineteen hundred and fifty-one. Any corporation reporting on a
fiscal year basis which was not entitled to the full twenty per centum
income tax reduction credit proclaimed by the Governor in August, nine-
teen hundred and fifty-one, for the taxable year nineteen hundred and
fifty-one, under § 58-86.3, because one or more of the months of the fiscal
year of the corporation fell in the calendar year nineteen hundred and
fifty, shall be entitled on its income tax for the taxable year nineteen
hundred and fifty-two, that is to say, for its fiscal year ending in the
calendar year nineteen hundred and fifty-two, to that proportion of a
credit of twenty per centum of such tax as the number of months of the
calendar year nineteen hundred and fifty-one which was not included in
the whole fiscal year of the corporation ending in the calendar year nine-
teen hundred and fifty-one, bears to the whole number of months of the
fiscal year of the corporation ending in the calendar year nineteen hun-
dred and fifty-two.

§§ 58-1118 and 58-1119 are applicable to such refunds and exonera-
tions as may be necessary under this section or § 58-86.3, except as to
the limitation of two years.