§ 5517. Withholding State income taxes

Statutory text

When a State statute—

provides for the collection of a tax either by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to the State, or by granting to employers generally the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld; and

imposes the duty or grants the authority to withhold generally with respect to the pay of employees who are residents of the State;

the Secretary of the Treasury, under regulations prescribed by the President, shall enter into an agreement with the State within 120 days of a request for agreement from the proper State official. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the State withholding statute in the case of employees of the agency who are subject to the tax and whose regular place of Federal employment is within the State with which the agreement is made. In the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made”.

This section does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on other employers, or which subjects the United States or its employees to a penalty or liability because of this section. An agency of the United States may not accept pay from a State for services performed in withholding State income taxes from the pay of the employees of the agency.

For the purpose of this section, “State” means a State, territory, possession, or commonwealth of the United States.

For the purpose of this section and sections 5516 and 5520, the terms “serve as a member of the armed forces” and “service as a member of the Armed Forces” include—

participation in exercises or the performance of duty under section 502 of title 32, United States Code, by a member of the National Guard; and

participation in scheduled drills or training periods, or service on active duty for training, under section 10147 of title 10, United States Code, by a member of the Ready Reserve.

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.

1966
Pub. L. 89–554 · 80 Stat. 378
Enacted · 5 U.S.C. § 5517
Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 478
Source evidence
Code source credit
Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 478
1976
Pub. L. 94–455 § 1207(a)(1) · 90 Stat. 1520
1. Inserted · 5 U.S.C. § 5517(a)
  Pub. L. 94–455, § 1207(a)(1), (c), inserted in par. (1) provision relating to the grant to employers of the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld
2. Inserted · 5 U.S.C. § 5517(a)
  Pub. L. 94–455, § 1207(a)(1), (c), inserted in par. (2) “or grants the authority” after “imposes the duty”
3. Substituted · 5 U.S.C. § 5517(a)
  Pub. L. 94–455, § 1207(a)(1), (c), substituted in text following par. (2) provisions that in the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made” for provision that the agreement may not apply to pay for service as a member of the armed forces
Source evidence
Code amendment note
Subsec. (a). Pub. L. 94–455, § 1207(a)(1), (c), inserted in par. (1) provision relating to the grant to employers of the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld, inserted in par. (2) “or grants the authority” after “imposes the duty”, and substituted in text following par. (2) provisions that in the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made” for provision that the agreement may not apply to pay for service as a member of the armed forces.
Enacted provision · exact public law section
(1) Withholding of state income taxes.— The last sentence of section 5517(a) of title 5, United States Code, is amended to read as follows: “In the case of pay for Service as a member of the armed forces, the preceding sentence shall be applied by substituting ‘who are residents of the State with which the agree-ment is made’ for ‘whose regular place of Federal employment is within the State with which the agreement is made’.”
1976
Pub. L. 94–455 § 1207(b) · 90 Stat. 1520
Added · 5 U.S.C. § 5517(d)
Pub. L. 94–455, § 1207(b), added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 94–455, § 1207(b), added subsec. (d).
Enacted provision · exact public law section
(b) Withholding State and City Income Taxes From the Compensation of Members of the National Guard or the Ready Reserve.— Section 5517 of title 5, United States Code, is amended by adding at the end thereof the following new subsection: “(d) For the purpose of this section and sections 5516 and 5520, the Definitions. 5 USC 5516, 5520. terms ‘serve as a member of the armed forces’ and ‘service as a member of the Armed Forces’ do not include— “(1) participation in exercises or the performance of duty under section 502 of title 32, United States Code, by a member of the National Guard; and “(2) participation in scheduled drills or training periods, or service on active duty for training, under section 270(a) of title 10, United States Code, by a member of the Ready Reserve.”
1987
National Defense Authorization Act for Fiscal Years 1988 and 1989
Pub. L. 100–180 div. A title V § 505(1) · 101 Stat. 1019
Struck · 5 U.S.C. § 5517(d)
Pub. L. 100–180 struck out “do not” before “include”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 100–180 struck out “do not” before “include”.
Enacted provision · exact public law section
(1) by striking out “do not” in section 5517(d); and
1994
Reserve Officer Personnel Management Act
Pub. L. 103–337 div. A title XVI § 1677(a)(1) · 108 Stat. 2663
Substituted · 5 U.S.C. § 5517(d)(2)
Pub. L. 103–337 substituted “section 10147” for “section 270(a)”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 103–337 substituted “section 10147” for “section 270(a)”.
Enacted provision · exact public law section
(1) Section 5517(d)(2) is amended by striking out “section 270(a) of title 10” and inserting in lieu thereof “section 10147 of title 10”.
1997
Pub. L. 105–34 title XIV § 1462(a) · 111 Stat. 788
Substituted · 5 U.S.C. § 5517(c)
Pub. L. 105–34 substituted “, territory, possession, or commonwealth” for “or territory or possession”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 105–34 substituted “, territory, possession, or commonwealth” for “or territory or possession”.
Enacted provision · exact public law section
(a) In General.— Subsection (c) of section 5517 of title 5, United States Code, is amended by striking “or territory or possession” and inserting “, territory, possession, or commonwealth”.
Effective date note
Section 1462(b) of Pub. L. 105–34 provided that: “The amendment made by subsection (a) [amending this section] shall take effect on January 1, 1998.”

7 of 8 references resolved to an enrolled provision · 1 partial

Notes

historicalAndRevision

Historical and Revision Notes
Derivation	U.S. Code	Revised Statutes andStatutes at Large
	5 U.S.C. 84b.	July 17, 1952, ch. 940, § 1, 66 Stat. 765.
		Sept. 23, 1959, Pub. L. 86–371 “Sec. 1”, 73 Stat. 653.
	5 U.S.C. 84c.	July 17, 1952, ch. 940, § 2, 66 Stat. 766.
		Sept. 23, 1959, Pub. L. 86–371 “Sec. 2”, 73 Stat. 653.

In subsection (b), the words “after March 31, 1959” are omitted as executed.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Editorial Notes

Amendments1976–1997 · 4 rounds

1997

Subsec. (c). Pub. L. 105–34 substituted “, territory, possession, or commonwealth” for “or territory or possession”.

1994

Subsec. (d)(2). Pub. L. 103–337 substituted “section 10147” for “section 270(a)”.

1987

Subsec. (d). Pub. L. 100–180 struck out “do not” before “include”.

1976

Subsec. (a). Pub. L. 94–455, § 1207(a)(1), (c), inserted in par. (1) provision relating to the grant to employers of the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld, inserted in par. (2) “or grants the authority” after “imposes the duty”, and substituted in text following par. (2) provisions that in the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made” for provision that the agreement may not apply to pay for service as a member of the armed forces.

Subsec. (d). Pub. L. 94–455, § 1207(b), added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 1997 Amendment

Section 1462(b) of Pub. L. 105–34 provided that: “The amendment made by subsection (a) [amending this section] shall take effect on January 1, 1998.”

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of Title 10, Armed Forces.

Effective Date of 1976 Amendment

Amendment by section 1207(a)(1) of Pub. L. 94–455 applicable to wages withheld after the 120-day period following any request for an agreement after Oct. 4, 1976, see section 1207(f)(1) of Pub. L. 94–455, set out as a note under section 5516 of this title.

Pub. L. 94–455, title XII, § 1207(f)(2), Oct. 4, 1976, 90 Stat. 1708, provided that: “The amendments made by subsections (b) and (c) [amending this section] shall apply to wages withheld after the 120-day period following the date of the enactment of this Act [Oct. 4, 1976].”

Executive Documents

Executive Order No. 10407

Ex. Ord. No. 10407, Nov. 7, 1952, 17 F.R. 10132, which related to regulations governing agreements concerning withholding of state or territorial income taxes, was revoked by Ex. Ord. No. 11968, Jan. 31, 1977, 42 F.R. 6787, formerly set out as a note under section 5520 of this title.

Credits

1966–1997 · 5 acts

1966Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 478
1976Pub. L. 94–455, title XII, § 1207(a)(1), (b), (c), Oct. 4, 1976, 90 Stat. 1704, 1705
1987Pub. L. 100–180, div. A, title V, § 505(1), Dec. 4, 1987, 101 Stat. 1086
1994Pub. L. 103–337, div. A, title XVI, § 1677(a)(1), Oct. 5, 1994, 108 Stat. 3019
1997Pub. L. 105–34, title XIV, § 1462(a), Aug. 5, 1997, 111 Stat. 1057.

Show as published

(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 478; Pub. L. 94–455, title XII, § 1207(a)(1), (b), (c), Oct. 4, 1976, 90 Stat. 1704, 1705; Pub. L. 100–180, div. A, title V, § 505(1), Dec. 4, 1987, 101 Stat. 1086; Pub. L. 103–337, div. A, title XVI, § 1677(a)(1), Oct. 5, 1994, 108 Stat. 3019; Pub. L. 105–34, title XIV, § 1462(a), Aug. 5, 1997, 111 Stat. 1057.)