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26 USC CHAPTER 23A - RAILROAD UNEMPLOYMENT REPAYMENT TAX 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23A - RAILROAD UNEMPLOYMENT REPAYMENT TAX

-HEAD-

CHAPTER 23A - RAILROAD UNEMPLOYMENT REPAYMENT TAX

-MISC1-

Sec.

3321. Imposition of tax.

3322. Definitions.

AMENDMENTS

1990 - Pub. L. 101-508, title XI, Sec. 11704(a)(18), Nov. 5,

1990, 104 Stat. 1388-519, substituted "23A - " for "23A." in

chapter heading.

1988 - Pub. L. 100-647, title VII, Sec. 7106(a), Nov. 10, 1988,

102 Stat. 3772, reenacted chapter heading and item 3321 without

change, substituted "Definitions" for "Taxable period" in item

3322, and omitted item 3323 "Other definitions".

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 6513 of this title.

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26 USC Sec. 3321 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23A - RAILROAD UNEMPLOYMENT REPAYMENT TAX

-HEAD-

Sec. 3321. Imposition of tax

-STATUTE-

(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.

-SOURCE-

(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.)

-REFTEXT-

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.

-MISC1-

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."

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 45 section 358; title 49

section 24104.

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26 USC Sec. 3322 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23A - RAILROAD UNEMPLOYMENT REPAYMENT TAX

-HEAD-

Sec. 3322. Definitions

-STATUTE-

(a) Rail employer

For purposes of this chapter, the term "rail employer" means any

person who is an employer as defined in section 1 of the Railroad

Unemployment Insurance Act.

(b) Rail wages

For purposes of this chapter, the term "rail wages" means, with

respect to any calendar month, so much of the remuneration paid

during such month which is subject to contributions under section

8(a) of the Railroad Unemployment Insurance Act.

(c) Employee representative

For purposes of this chapter, the term "employee representative"

has the meaning given such term by section 1 of the Railroad

Unemployment Insurance Act.

(d) Certain rules made applicable

For purposes of this chapter, rules similar to the rules of

section 3307 and 3308 shall apply.

-SOURCE-

(Added Pub. L. 98-76, title II, Sec. 231(a), Aug. 12, 1983, 97

Stat. 427; amended Pub. L. 99-272, title XIII, Sec. 13301(d), Apr.

7, 1986, 100 Stat. 327; Pub. L. 100-647, title VII, Sec. 7106(a),

Nov. 10, 1988, 102 Stat. 3773.)

-REFTEXT-

REFERENCES IN TEXT

Section 1 of the Railroad Unemployment Insurance Act, referred to

in subsecs. (a) and (c), is classified to section 351 of Title 45,

Railroads.

Section 8(a) of the Railroad Unemployment Insurance Act, referred

to in subsec. (b), is classified to section 358(a) of Title 45.

-MISC1-

AMENDMENTS

1988 - Pub. L. 100-647 amended section generally, substituting

present provisions for former provisions relating to taxable

period, which had provided, in subsec. (a), for a general rule and,

in subsec. (b), for earlier termination if loans to rail

unemployment fund repaid.

1986 - Subsec. (a)(2), (3). Pub. L. 99-272, Sec. 13301(d)(1),

struck out "and before 1990, and" after "1986" in par. (2) and

struck out par. (3) relating to the period beginning on Jan. 1,

1990, and ending on Sept. 30, 1990.

Subsec. (b). Pub. L. 99-272, Sec. 13301(d)(2), substituted "The

basic rate under section 3321(c)(1)(A) of the tax imposed by

section 3321 shall not apply" for "The tax imposed by this chapter

shall not apply" in introductory provision, and inserted "made

before October 1, 1985," in par. (1).

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to remuneration paid

after Dec. 31, 1988, see section 7106(d) of Pub. L. 100-647, set

out as a note under section 3321 of this title.

EXCLUSION FROM WAGES AND COMPENSATION OF REFUNDS REQUIRED FROM

EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY

HEALTH CARE BENEFITS PROVIDED BY EMPLOYERS

For purposes of this chapter, the term "rail wages" shall not

include the amount of any refund required under section 421 of Pub.

L. 100-360, 42 U.S.C. 1395b note, see section 10202 of Pub. L.

101-239, set out as a note under section 1395b of Title 42, The

Public Health and Welfare.

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26 USC [Sec. 3323 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23A - RAILROAD UNEMPLOYMENT REPAYMENT TAX

-HEAD-

[Sec. 3323. Omitted]

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Section, added Pub. L. 98-76, title II, Sec. 231(a), Aug. 12,

1983, 97 Stat. 427; amended Pub. L. 99-272, title XIII, Sec.

13301(b), Apr. 7, 1986, 100 Stat. 326, contained definitions, prior

to the general amendment of this chapter by Pub. L. 100-647, Sec.

7106(a). See section 3322 of this title.

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