CHAPTER 331

An Act to amend and reenact § 58-153, as amended, of the Code of Vir-
ginia, relating to classification and exemptions of beneficiaries for
purposes of taxation of inheritances and rates of tax.

(S 155]

Approved March 30, 1962

Be it enacted by the General Assembly of Virginia:

1. That § 58-153, as amended, of the Code of Virginia, be amended
and reenacted as follows:

§ 58-153. For the purposes of this chapter, the classification of
beneficiaries, their exemptions and the rates of taxation shall be as

ollows:

Class A. The father, mother, grandfathers, grandmothers, husband,
wife, children by blood or by legal adoption, stepchildren, grandchildren
and all other lineal ancestors and lineal descendants of the decedent shall
constitute class A.

So much of such property as has the actual value of five thousand
dollars and so passes to or for the use of any class A beneficiary shall
be exempt from taxation hereunder.

So much of such property as shall so pass to or for the use of a
class A beneficiary shall be subject: To a tax of one per centum of the
actual value of so much thereof as is in excess of five thousand dollars
and is not in excess of fifty thousand dollars; to a tax of two per centum
upon so much thereof as is in excess of fifty thousand dollars and is not
in excess of one hundred thousand dollars; to a tax of three per centum
upon so much thereof as is in excess of one hundred thousand dollars
and is not in excess of five hundred thousand dollars; to a tax of four
per centum upon so much thereof as is in excess of five hundred thousand
dollars and is not in excess of one million dollars; and to a tax of five
per centum upon all in excess of one million dollars.

Class B. The brothers, sisters, nephews and nieces of the whole
or half blood of the decedent shall constitute class B.

So much of such property as has the actual value of two thousand
dollars and so passes to or for the use of any class B beneficiary shall be
exempt from taxation hereunder.

So much of such property as shall so pass to or for the use of a
class B beneficiary shall be subject to a tax of two per centum of the
actual value of so much thereof as is in excess of two thousand dollars
and is not in excess of twenty-five thousand dollars; to a tax of four per
centum upon so much thereof as is in excess of twenty-five thousand
dollars and is not in excess of fifty thousand dollars; to a tax of six per
centum upon so much thereof as is in excess of fifty thousand dollars
and is not in excess of one hundred thousand dollars; to a tax of eight
per centum upon so much thereof as is in excess of one hundred thousand
dollars and is not in excess of five hundred thousand dollars; and to a
tax of ten per centum upon all in excess of five hundred thousand dollars.

Class C. Grandnephews and grandnieces of the decedent and all
persons other than members of classes A and B and all firms, institutions,
associations and corporations shall constitute class C.

So much of such property as has the actual value of one thousand
dollars and so passes to or for the use of any class C beneficiary shall be
exempt from taxation hereunder.

So much of such property as shall so pass to or for the use of a
class C beneficiary shall be subject to a tax of five per centum of the
actual value of so much thereof as is in excess of one thousand dollars
and is not in excess of twenty-five thousand dollars; to a tax of seven
per centum upon so much thereof as is in excess of twenty-five thousand
dollars and is not in excess of fifty thousand dollars; to a tax of nine per
centum upon so much thereof as is in excess of fifty thousand dollars
and is not in excess of one hundred thousand dollars; to a tax of twelve
per centum upon so much thereof as is in excess of one hundred thousand
dollars and is not in excess of five hundred thousand dollars; and to a
tax of fifteen per centum upon all in excess of five hundred thousand
dollars.

In the computation of the property passing to a beneficiary there
shall be excluded from such computation the value of any annuity or
survivors benefit payable under the Railroad Retirement Act of 1937
(45 USCA § 228a et seq.) to such beneficiary, or the value of any annuity
payable to such beneficiary under § 2259 (g) of Chapter 30, Title 5 of
the United States Code, as now or hereafter amended.

Where a parcel of real property is owned by husband and wife as

tenants by the entireties or joint tenants, with the right of survivorship,
and such parcel is a single family residential property occupied by such
husband and wife as their home place at the time of the decedent’s death,
one-half of the full value of such property shall be included in the sur-
viving tenant’s share, unless a lesser portion of the full value is found to
be so includible in such share under clause (5) of § 58-152, as amended;
but the amount of any deed of trust or other lien outstanding upon such
property at the time of the decedent’s death, shall be first deducted from
the full value of such property prior to the computation of such one-half,
or such lesser portion, as the case may be, and the amount of any such
deed of trust or other lien shall not be otherwise deductible. The term
“single-family residential property’, as herein used, means the dwelling-
house, limited in design to the accommodation of a single family, and the
land it actually occupies, together with only such additional adjacent
land as may be necessary for the convenient use of the dwelling-house
as a dwelling-house.
2. This act shall apply to the estates of persons dying on or after the
first day of July, nineteen hundred and sixty-four and to the estates of
deceased persons which shall come into possession of beneficiaries by the
exercise or relinquishment of powers after such date.