§ 3321. Imposition of tax

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1983

   Railroad Retirement Solvency Act of 1983

   Pub. L. 98–76 title II § 231(a) · 97 Stat. 411

   Enacted · 26 U.S.C. § 3321

   Added Pub. L. 98–76, title II, § 231(a), Aug. 12, 1983, 97 Stat. 426

   Source evidence

   Code source credit
   Added Pub. L. 98–76, title II, § 231(a), Aug. 12, 1983, 97 Stat. 426

   Enacted provision · exact public law section
   (a) General Rule.— Subtitle C of the Internal Revenue Code of 1954 (relating to employment taxes) is amended by inserting after chapter 23 the following new chapter: “CHAPTER 23A— RAILROAD UNEMPLOYMENT REPAYMENT TAX “Sec. 3321. Imposition of tax. “Sec. 3322. Taxable period. “Sec. 3323. Other definitions. “SEC. 3321. IMPOSITION OF TAX. “(a) General Rule.— There is hereby imposed on every rail employer for each taxable period an excise tax, with respect to having individuals in his employ, equal to the applicable percentage of the total rail wages paid by him during the taxable period. “(b) Tax on Employee Representatives.— “(1) In general.— There is hereby imposed on the income of each employee representative a tax equal to the applicable percentage of the rail wages paid to him during the taxable period. “(2) Determination of wages.— The rail wages of an em ployee 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) Rate of Tax.— For purposes of this section— “(1) For taxable period july i 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 percent age 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. “SEC. 3322. TAXABLE PERIOD. “(a) General Rule.— For purposes of this chapter, except as provided in subsection (b), the term ‘taxable period’ means— “(1) the period beginning on July 1, 1986, and ending on December 31, 1986, “(2) each calendar year after 1986 and before 1990, and “(3) the period beginning on January 1, 1990, and ending on September 30, 1990. “(b) Earlier Termination if Loans to Rail Unemployment Fund Repaid.— The tax imposed by this chapter shall not apply to any rail wages paid on or after the first January 1 after 1986 as of which there is— “(1) no balance of transfers to the railroad unemployment insurance account under section 10(d) of the Railroad Unemployment Insurance Act, and “(2) no unpaid interest on such transfers. “SEC. 3323. OTHER DEFINITIONS. “(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.— “(1) In general.— For purposes of this chapter, the term ‘rail wages’ means wages as defined in section 3306(b) with the 26 USC 3306. modifications specified in paragraph (2). “(2) Modifications.— In applying subsection (b) of section 3306 for purposes of paragraph (1)— “(A) Only railroad employment taken into account.— Such subsection (b) shall be applied— “(i) by substituting ‘rail employment’ for ‘employment’ each place it appears, and “(ii) by substituting ‘rail employer’ for ‘employer’ each place it appears. “(B) Wage base for first taxable period.— In the case of the taxable period beginning on July 1, 1986, and ending on December 31, 1986, such subsection (b) shall be applied by substituting ‘$3,500’ for ‘$7,000’ each place it appears in paragraph (1) thereof. “(C) Wage base for last taxable period.— In the case of the taxable period beginning on January 1, 1990, and ending on September 30, 1990, such subsection (b) shall be applied by substituting ‘$5,250’ for ‘$7,000’ each place it appears in paragraph (1) thereof. “(c) Rail Employment.— For purposes of this chapter, the term ‘rail employment’ means services performed by an individual as a rail employee or employee representative. “(d) Rail Employee and Employee Representative.— For purposes of this chapter— “(1) Rail employee.— The term ‘rail employee’ means any person who is an employee as defined in section 1 of the 45 USC 351. Railroad Unemployment Insurance Act. “(2) Employee representative.— The term ‘employee representative’ has the meaning given such term by section 1 of the Railroad Unemployment Insurance Act. “(e) Concurrent Employment by 2 or More Rail Employers.— For purposes of this chapter, if 2 or more related corporations which are rail employers concurrently employ the same individual and compensate such individual through a common paymaster which is 1 of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations. “(f) Certain Rules Made Applicable.— For purposes of this chapter, rules similar to the rules of sections 3307 and 3308 shall apply.”

2. 1986

   Consolidated Omnibus Budget Reconciliation Act of 1985

   Pub. L. 99–272 title XIII § 13301(a) · 100 Stat. 82

   Amended · 26 U.S.C. § 3321(c)

   Pub. L. 99–272 amended subsec. (c) generally. Prior to amendment subsec. (c) read as follows:

   Source evidence

   Code amendment note
   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.”

   Enacted provision · exact public law section
   (a) Rate of Tax.— Subsection (c) of section 3321 of the Internal Revenue Code of 1954 (relating to rate of railroad unemployment 26 USC 3321. repayment tax) is amended to read as follows: “(c) Rate of Tax.— For purposes of this section— “(1) In general.— The applicable percentage for any taxable period shall be the sum of— “(A) the basic rate for such period, and “(B) the surtax rate (if any) for such period. “(2) Basic rate.— For purposes of paragraph (1)— “(A) For periods before 1989.— The basic rate shall be— “(i) 4.3 percent for the taxable period beginning on July 1, 1986, and ending on December 31, 1986, “(ii) 4.7 percent for the 1987 taxable period, and “(iii) 6 percent for the 1988 taxable period. “(B) For periods after 1988.— For any taxable period beginning after December 31, 1988, the basic rate shall be the sum of— “(i) 2.9 percent, plus “(ii) 0.3 percent for each preceding taxable period after 1988. In no event shall the basic rate under this subparagraph exceed 5 percent. “(3) Surtax rate.— For purposes of paragraph (1), the surtax rate shall be— “(A) 3.5 percent for any taxable period 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, and 45 USC 360. “(B) zero for any other taxable period. “(4) Basic rate not to apply to rail wages paid after September 30, 1990.— The basic rate under paragraph (1)(A), shall not apply to rail wages paid after September 30, 1990”

3. 1988

   Railroad Unemployment Insurance and Retirement Improvement Act of 1988

   Pub. L. 100–647 § 7106(a) · 102 Stat. 3342

   Substituted · 26 U.S.C. § 3321

   Pub. L. 100–647, § 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

   Source evidence

   Code amendment note
   Pub. L. 100–647, § 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.

   Enacted provision · exact public law section
   (a) In General.— Chapter 23A of the 1986 Code (relating to railroad unemployment repayment tax) is amended to read as follows: “CHAPTER 23A. RAILROAD UNEMPLOYMENT REPAYMENT TAX “Sec. 3321. Imposition of tax. “Sec. 3322. Definitions. “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. “SEC. 3322. DEFINITIONS. “(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.”

   Effective date note
   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. Pub. L. 100–647, title VII, § 7106(d), Nov. 10, 1988, 102 Stat. 3774, 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.”

4. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1018(u)(17) · 102 Stat. 3342

   Added · 26 U.S.C. § 3321

   Pub. L. 100–647, § 1018(u)(17), added a period at end of par. (4)

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 100–647, § 1018(u)(17), added a period at end of par. (4).

   Enacted provision · exact public law section
   (17) Paragraph (4) of section 3321(c) of the 1986 Code is amended by adding a period at the end thereof.

   Effective date note
   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. Pub. L. 100–647, title VII, § 7106(d), Nov. 10, 1988, 102 Stat. 3774, 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.”

4 of 4 references resolved to an enrolled provision