                                 CODE OF VIRGINIA

IMPOSITION OF TAX (§ 58.1-936)

A. A tax is hereby imposed upon every generation skipping transfer, where the
original transferor is a resident of the Commonwealth of Virginia at the date of
original transfer, in an amount equal to the amount allowable as credit for
state legacy taxes under &#xA7; 2604 of the Internal Revenue Code, to the extent
such credit exceeds the aggregate amount of all taxes on the same transfer
actually paid to the several states of the United States, other than the
Commonwealth of Virginia.

B. A tax is hereby imposed upon every generation skipping transfer where the
original transferor is not a resident of Virginia at the date of the original
transfer, but where the generation skipping transfer includes real or personal
property having a situs in Virginia, in an amount equal to the amount allowable
as a credit for state legacy taxes under &#xA7; 2604 of the Internal Revenue
Code, reduced by an amount which bears the same ratio to the total state tax
credit allowable for federal generation skipping transfer tax purposes as the
value of the transferred property taxable by all other states bears to the value
of the gross generation skipping transfer for federal generation skipping
transfer tax purposes. In any case in which a tax is imposed on a generation
skipping transfer by Virginia and by one or more other states or the District of
Columbia, the Commissioner shall negotiate with the taxing authorities of such
other state, states, or District of Columbia so that the aggregate amount of
taxes imposed by Virginia and such other state, states or the District of
Columbia on a generation skipping transfer does not exceed 100 percent of the
amount allowable as credit for state legacy taxes under &#xA7; 2604 of the
Internal Revenue Code.

HISTORY: Code 1950, § 58-238.37; 1979, c. 559; 1984, c. 675; 1987, c. 484.