CHAPTER 425

An Act to amend and reenact §§ 58-516, 58-517, 58-519, 58-524, as amended,

and 58-531, as amended, of the Code of Virginia; and to repeal

§§ 58-584 and 58-535 of the Code of Virginia, all relating to the tax-
ation of railway and canal corporations.

[H 262]

Approved March 31, 1964

Be it enacted by the General Assembly of Virginia:
1. That §§ 58-516, 58-517, 58-519, 58-524, as amended, and 58-531, as
amended, of the Code of Virginia, be amended and reenacted as follows:

§ 58-516. * Intangible personal property.—The State franchise tax
hereinafter provided for shall be in lieu of a State tax on the intangible
personal property * owned by every railway and canal corporation. *
This section, as amended, shall apply to the assessment for the tax
year nineteen hundred and sixty-five and annually thereafter until other-
wise provided by law.

-517. * Money.—The State franchise tax hereinafter provided
for shall be in leu of a State tax on the money of every railway and canal
corporation. *

This section, as amended, shall apply to the assessment for the tax
year nineteen hundred and sixty-five and annually thereafter until other-
wise provided by law.

§ 58-519. State franchise tax.—Every such railway or canal cor-
poration shall pay to the State an annual State franchise tax for each
calendar year equal to two per centum upon the gross transportation
receipts, hereinafter specified, for the privilege of exercising its franchise
in this State; provided, however, the rate of such annual State franchise
tax for the calendar year nineteen hundred and sixty-six shall be one and
nine-tenths per centum; for the calendar year nineteen hundred and sixty-
seven, one and eight-tenths per centum; for the calendar year nineteen
hundred and sixty-eight, one and seven-tenths per centum; for the calendar
year nineteen hundred and sixty-nine, one and six-tenths per centum,
and for the calendar year nineteen hundred and seventy and for each
calendar year thereafter, one and five-tenths per centum; and provided
further * that every such railway corporation operating an electric railway
or railways shall pay to the State an annual State franchise tax equal to
two and one-tenth per centum upon the gross transportation receipts,
hereinafter specified, for the privilege of exercising its franchise in this
State. Such franchise tax, with the taxes hereinbefore provided for, shall
be in lieu of all taxes or license charges whatsoever upon the franchises
of such corporations and the shares of stock issued by them and upon all
of their property, as hereinbefore provided; provided:

(1) That nothing herein contained shall exempt such corporations
from the annual fee required by section one hundred and fifty-seven of the
Constitution or from assessment for street and other local improvements
which shall be authorized by law, or from the county, city, town, district
or road levies hereinafter provided for other than a franchise tax;

(2) That nothing herein contained shall annul, interfere with or
prevent any contract or agreement by ordinance between street railway
corporations and municipalities as to compensation for use of the streets
or alleys of such municipalities by such railway corporation;

3) That in case of any railway or canal corporation operated wholly
within this State, whose actual operating expenses exceed its gross trans-
portation receipts, the annual State franchise tax shall be equal to one
and three-sixteenths per centum upon the gross transportation receipts; and

(4) That any steam railway company in which nine-tenths of the
stock of such company is owned by a city or county of this State and which
is operated at a loss shall pay to the State an annual State franchise tax
of only five dollars.

§ 58-524. Annual property report required.—Every railway and
canal corporation of this State, not exempt from taxation by virtue of its
charter, and every railway and canal corporation incorporated under the
laws of any other state doing business in this State shall report on or before
the fifteenth day of April, to the State Corporation Commission, all of its
real and personal property of every description (other than the property
mentioned in §§ 58-516 and 58-517), as of the thirty-first day of December
preceding, the fair cash value thereof, showing particularly in what county
or corporation and school district in this State such property is located,
except only such part thereof as is segregated exclusively for State tax-
ation and in what county or corporation the principal office or agency of
such corporation is located. The lien of the State or subdivision thereof for
taxes levied on such property for all purposes for the year nineteen
hundred sixty-*five and each year thereafter shall attach to such property
on the thirty-first day of December next preceding.

The report shall classify such property under the following heads:

(1) Right-of-way, terminal and yard lands, and roadbed and trackage
or canal bed, bridges, trestles and tunnels and all signals (tract and
crossing), and interlockers, buildings, structures and other improvements
thereon, except only such improvements as are provided for in classes
below mentioned;

(2) Depot and shop grounds and lots and all other lands used for
common carrier purposes, except those included in class (1) above, and
all buildings, structures and other improvements thereon, except only such
improvements as are provided for in classes below mentioned;

(3) Real estate not included in other classes and all buildings, struc-
tures and other improvements thereon, except only such improvements
as are provided for in classes below mentioned;

(4) Telephone and telegraph lines, together with telephone apparatus
and equipment, power transmission and power distribution lines, with
apparatus and equipment for use in connection therewith, and water pipe
lines, as a part of all which shall be included poles, wire, cable, under-
ground conduits and all other integral parts thereof and rights-of-way,
wherever the rights-of-way are not reported under above classifications of
real estate;

(5) Rolling stock, which shall include all locomotives, of whatever
motive power, autocars, cars of every kind and description, canal boats
and all other equipment which it is reasonably proper to class as rolling
stock; provided, that foreign railway and canal corporations doing busi-
ness in this State shall report and be assessed on the average amount of
rolling stock habitually used by them in this State;

(6) Boats, and all other floating property and equipment, except canal
boats, machinery in shops, engine houses, power plants, substations, pump
houses and all other machinery of every class and description and all
furniture and office equipment of every kind and description;

(7) Stores, fuel, materials and supplies of every class and description;

* (8) All other personal property of such company not enumerated
in either of the foregoing heads, which would be taxable if the same
belonged to an individual. Such report shall not include intangible personal
property mentioned in § 58-516 nor money mentioned in § 58-517.

This section, as amended, shall apply to the assessment for the tax
year nineteen hundred and sixty-five and annually thereafter until other-
wise provided by law.

58-531. Assessment when corporation fails to make reports.—The
State Corporation Commission shall, at such time as it may elect, on or
before the fifteenth day of May of each year, proceed to ascertain and
assess the gross transportation receipts of any railway or canal corporation
which has failed to make the reports herein required and shall also assess
the value of the property of any such corporation, except its franchise
and * the property mentioned in §§ 58-516 and 58-517 at a fair cash
valuation, upon the best and most reliable information that can be procured
and to this end may send for persons and papers, and the Commission
shall assess upon such gross transportation receipts and property the
taxes imposed thereon by law. A certified copy of the assessment when
made shall be immediately forwarded by the clerk of the State Corporation
Commission to the Comptroller and to the president or other proper officer
of such railway or canal corporation so assessed, whose duty it shall be
to pay into the State treasury within fifteen days after receiving the
certified copy of the assessment, the taxes upon its property and the
franchise tax upon its gross transportation receipts as shown by the copy
of the assessment.
This section, as amended, shall apply to the assessment for the tax
year nineteen hundred and sixty-five and annually thereafter untiu other-
wise provided by law. a
2. at §§ 58-534 and 58-535 of the Code of Virginia are repealed,
effective as of January first, nineteen hundred and sixty-five.