Internal Revenue Code:Sec. 3321. Imposition of tax

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle C - Employment Taxes
       CHAPTER 23A - RAILROAD UNEMPLOYMENT REPAYMENT TAX
     

Statute

    Sec. 3321. Imposition of tax
 
    (a) General rule
      There is hereby imposed on every rail employer for each calendar
    month an excise tax, with respect to having individuals in his
    employ, equal to 4 percent of the total rail wages paid by him
    during such month.
    (b) Tax on employee representatives
      (1) In general
        There is hereby imposed on the income of each employee
      representative a tax equal to 4 percent of the rail wages paid to
      him during the calendar month.
      (2) Determination of wages
        The rail wages of an employee representative for purposes of
      paragraph (1) shall be determined in the same manner and with the
      same effect as if the employee organization by which such
      employee representative is employed were a rail employer.
    (c) Termination if loans to railroad unemployment fund repaid
      The tax imposed by this section shall not apply to rail wages
    paid on or after the 1st day of any calendar month if, as of such
    1st day, there is -
        (1) no balance of transfers made before October 1, 1985, to the
      railroad unemployment insurance account under section 10(d) of
      the Railroad Unemployment Insurance Act, and
        (2) no unpaid interest on such transfers.
 

Sources

    (Added Pub. L. 98-76, title II, Sec. 231(a), Aug. 12, 1983, 97
    Stat. 426; amended Pub. L. 99-272, title XIII, Sec. 13301(a), Apr.
    7, 1986, 100 Stat. 325; Pub. L. 100-647, title I, Sec. 1018(u)(17),
    title VIII, Sec. 7106(a), Nov. 10, 1988, 102 Stat. 3590, 3772.)
 

References in Text

                             REFERENCES IN TEXT
      Section 10(d) of the Railroad Unemployment Insurance Act,
    referred to in subsec. (c)(1), is classified to section 360(d) of
    Title 45, Railroads.
 

Miscellaneous

                                 AMENDMENTS
      1988 - Pub. L. 100-647, Sec. 7106(a), amended section generally,
    revising and restating provisions of subsecs. (a) and (b) and
    specifying imposition of 4 percent tax on rail wages rather than a
    tax based on the ''applicable percentage'' of rail wages, and in
    subsec. (c) substituting provisions relating to termination if
    loans to railroad unemployment fund repaid for provisions relating
    to rates of tax.
      Pub. L. 100-647, Sec. 1018(u)(17), added a period at end of par.
    (4).
      1986 - Subsec. (c). Pub. L. 99-272 amended subsec. (c)
    generally.  Prior to amendment subsec. (c) read as follows:
      ''(c) Rate of Tax. - For purposes of this section -
        ''(1) For taxable period july 1 through december 31, 1986. -
      The applicable percentage for the taxable period beginning on
      July 1, 1986, and ending on December 31, 1986, shall be 2
      percent.
        ''(2) Subsequent taxable periods. - The applicable percentage
      for any taxable period beginning after 1986 shall be the sum of -
          ''(A) 2 percent, plus
          ''(B) 0.3 percent for each preceding taxable period.
      In no event shall the applicable percentage exceed 5 percent.''
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by section 1018(u)(17) of Pub. L. 100-647 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 1019(a) of Pub. L. 100-647, set out as a note
    under section 1 of this title.
      Section 7106(d) of Pub. L. 100-647 provided that: ''The
    amendments made by this section (amending this section and sections
    3322, 6157, 6201, 6317, 6513, and 6601 of this title, omitting
    section 3323 of this title, and amending provisions set out as a
    note under section 231n of Title 45, Railroads), and the provisions
    of subsection (b) (set out below), shall apply to remuneration paid
    after December 31, 1988.''
                               EFFECTIVE DATE
      Section 231(d) of Pub. L. 98-76 provided that: ''The amendments
    made by this section (enacting this chapter and amending sections
    6157, 6201, 6317, 6513, and 6601 of this title) shall apply to
    remuneration paid after June 30, 1986.''
                  CONTINUATION OF SURTAX RATE THROUGH 1990
      Section 7106(b) of Pub. L. 100-647 provided that:
      ''(1) In general. - In the case of any calendar month beginning
    before January 1, 1991 -
        ''(A) there shall be substituted for '4 percent' in subsections
      (a) and (b) of section 3321 of the 1986 Code the percentage equal
      to the sum of -
          ''(i) 4 percent, plus
          ''(ii) the surtax rate (if any) for such calendar month, and
        ''(B) subsection (c) of such section shall not apply to so much
      of the tax imposed by such section as is attributable to the
      surtax rate.
      ''(2) Surtax rate. - For purposes of paragraph (1), the surtax
    rate shall be -
        ''(A) 3.5 percent for each month during a calendar year if, as
      of September 30, of the preceding calendar year, there was a
      balance of transfers (or unpaid interest thereon) made after
      September 30, 1985, to the railroad unemployment insurance
      account under section 10(d) of the Railroad Unemployment
      Insurance Act (45 U.S.C. 360(d)), and
        ''(B) zero for any other calendar month.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 45 section 358; title 49
    section 24104.