CHAPTER 70

AN ACT to amend and reenact § 58-292 of the Code of Virginia, as
amended, relating to the taxation of certain wholesale merchandise
brokers, so as to authorize the local taxation of certain tangible
personal property belonging to wholesale merchandise brokers.

{S 134]
Approved February 20, 1958

Be it enacted by the General Assembly of Virginia:

1. That § 58-292 of the Code of Virginia, as amended, be amended
and reenacted as follows:

§ 58-292. Certain wholesale merchandise brokers.—Every whole-
sale merchandise broker dealing in food products and other commodities,
who sells only to wholesalers, manufacturers, governmental units, indus-
trial users and others only at wholesale prices, and whose gross profits
are measured 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 three thousand dollars; but
when the gross commissions and gross profits exceed three thousand dol-
lars, the tax shall be fifty dollars on the first three thousand dollars of
gross commissions and gross profits, and thirty-five cents per one hundred
dollars on all gross commissions and gross profits in excess of three
thousand dollars. The license tax on every such wholesale merchandise
broker beginning business shall be the initial tax of fifty dollars 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 tax prescribed by this section shall be in lieu of
a State tax on the capital actually used or employed by every such whole-
sale 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. Nothing in this section shall be construed as
exempting from local taxation as tangible personal property the tangible
personal property belonging to a wholesale merchandise broker and not
held or offered for sale as merchandise. This section shall apply to per-
sons, firms and corporations.

2. This act shall be in force on and after January 1, 1959.