CHAPTER 454

An Act to amend and reenact § 58-108, as amended, of the Code of
Virginia, relating to credit for income taxes paid other states by rest-
dent individuals of this State; and to amend the Code of Virginia by
adding thereto a new section numbered 58-104.1, relating to a special
case in which a nonresident need not file a Virginia return. rH 899)

Approved March 31, 1964

Be it enacted by the General Assembly of Virginia:
1. That § 58-103, as amended, of the Code of Virginia be amended and
reenacted, and that the Code of Virginia be amended by adding thereto a
new section numbered 58-104.1, the amended and reenacted section and the
new section being as follows: oo

§ 58-103. Credit for taxes paid other states by resident individuals
of this State-——Whenever a resident individual of this State has become
liable to income tax to another state, as a nonresident of such state, upon
his net income, or any part thereof, for the taxable year, derived from
sources without this State and subject to taxation under this chapter, the
amount of income tax payable by him under this chapter shall be credited
on his return with the income tax so paid by him to such other state upon
his producing to the proper assessing officer satisfactory evidence of the
facts and of such payment; provided, however, that the credit allowable
under this section shall not exceed such proportion of the income tax
otherwise payable by him under this chapter as his net income upon which
the tax imposed by such other state was computed bears to his net income
upon which the tax imposed by this State was computed. The credit pro-
vided for by this section shall not be granted to a taxpayer when the laws
of another state, under which the income in question is subject to tax
assessment, provide for a credit to such taxpayer substantially similar to
that granted by § 58-104 of this chapter.

This section, as amended, shall apply with respect to taxable years
beginning after December thirty-first, nineteen hundred and sixty-three.

§ 58-104.1. Special case in which a nonresident need not file a
Virginia return.—A nonresident individual of this State who had no
actual place of abode in this State at any time during the taxable year
and commuted on a daily basis from his place of residence in another
State to his place of employment in this State is hereby relieved of filing
am income return to this State for that taxable year provided: (1) his only
income from sources within this State was from salaries and wages, and
(2) such salaries and wages were subject to income taxation by the State
of his residence under a net income tax law substantially similar in prin-
ciple to this chapter, and (8) the laws of such other State contain a pro-
vision substantially similar in effect to that contained in § 58-104 and ap-
plicable to residents of this State, and (4) the laws of such other State
accord like treatment to a resident of this State who commuted on a daily
basis from his place of residence in this State to his place of employment in
such other State.

This section shall apply with respect to taxable years beginning after
December thirty-first, nineteen hundred and sixty-two.