Title 5 — Government Organization and Employees
Part III · Chapter 55 — Pay Administration
§ 5520. Withholding of city or county income or employment taxes
Statutory text
When a city or county ordinance—
provides for the collection of a tax by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to a designated city or county officer, department, or instrumentality; and
imposes the duty to withhold generally on the payment of compensation earned within the jurisdiction of the city or county in the case of employees whose regular place of employment is within such jurisdiction;
the Secretary of the Treasury, under regulations prescribed by the President, shall enter into an agreement with the city or county within 120 days of a request for agreement by the proper city or county official. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the city or county ordinance in the case of any employee of the agency who is subject to the tax and (i) whose regular place of Federal employment is within the jurisdiction of the city or county with which the agreement is made or (ii) is a resident of such city or county. The agreement may not apply to pay for service as a member of the Armed Forces (other than service described in section 5517(d) of this title). The agreement may not permit withholding of a city or county tax from the pay of an employee who is not a resident of, or whose regular place of Federal employment is not within, the State in which that city or county is located unless the employee consents to the withholding.
This section does not give the consent of the United States to the application of an ordinance 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 city or county for services performed in withholding city or county income or employment taxes from the pay of employees of the agency.
For the purpose of this section—
“city” means any unit of general local government which—
is classified as a municipality by the Bureau of the Census, or
is a town or township which, in the determination of the Secretary of the Treasury—
possesses powers and performs functions comparable to those associated with municipalities,
is closely settled, and
contains within its boundaries no incorporated places, as defined by the Bureau of the Census,
within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government;
“county” means any unit of local general government which is classified as a county by the Bureau of the Census and within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government;
“ordinance” means an ordinance, order, resolution, or similar instrument which is duly adopted and approved by a city or county in accordance with the constitution and statutes of the State in which it is located and which has the force of law within such city or county; and
“agency” means—
an Executive agency;
the judicial branch; and
the United States Postal Service.
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.
Pub. L. 93–340 § 1(a) · 88 Stat. 294
Enacted · 5 U.S.C. § 5520
Added Pub. L. 93–340, § 1(a), July 10, 1974, 88 Stat. 294
Source evidence
Code source credit
Added Pub. L. 93–340, § 1(a), July 10, 1974, 88 Stat. 294Pub. L. 94–358 § 1 · 90 Stat. 910
Substituted · 5 U.S.C. § 5520(c)(1)
Pub. L. 94–358 substituted provision defining a city, for purposes of this section, as any unit of general local government which is classified a municipality by the Bureau of the Census, or is a town or township which in the opinion of the Secretary of the Treasury possesses powers and performs functions comparable to those associated with municipalities, is closely settled, and contains within its boundaries no incorporated places, as defined by the Bureau of the Census, within the political boundaries of which five hundred or more persons are regularly employed by all agencies of the Federal Government, for provision defining a city, for purposes of this section, as a city which is duly incorporated under the laws of a State and within the political boundaries of which five hundred or more persons are regularly employed by all agencies of the Federal Government
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 94–358 substituted provision defining a city, for purposes of this section, as any unit of general local government which is classified a municipality by the Bureau of the Census, or is a town or township which in the opinion of the Secretary of the Treasury possesses powers and performs functions comparable to those associated with municipalities, is closely settled, and contains within its boundaries no incorporated places, as defined by the Bureau of the Census, within the political boundaries of which five hundred or more persons are regularly employed by all agencies of the Federal Government, for provision defining a city, for purposes of this section, as a city which is duly incorporated under the laws of a State and within the political boundaries of which five hundred or more persons are regularly employed by all agencies of the Federal Government.Tax Reduction and Simplification Act of 1977
Pub. L. 95–30 § 408(a)(1) · 91 Stat. 126
Inserted · 5 U.S.C. § 5520
Pub. L. 95–30, § 408(a)(1), inserted “or county” after “city” in section catchline
Source evidence
Code amendment note
Pub. L. 95–30, § 408(a)(1), inserted “or county” after “city” in section catchline.Enacted provision · exact public law section
(1) by inserting “or county” after “city” in the heading of such section;Tax Reduction and Simplification Act of 1977
Pub. L. 95–30 § 408(a)(2) · 91 Stat. 126
Substituted · 5 U.S.C. § 5520(a)
Pub. L. 95–30, § 408(a)(2), (3), substituted “city or county” for “city” in introductory provisions preceding par. (1), in par. (2), and in provisions following par. (2), and, in par. (1)
Substituted · 5 U.S.C. § 5520(a)
Pub. L. 95–30, § 408(a)(2), (3), substituted “a designated city or county officer, department, or instrumentality” for “the city”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 95–30, § 408(a)(2), (3), substituted “city or county” for “city” in introductory provisions preceding par. (1), in par. (2), and in provisions following par. (2), and, in par. (1), substituted “a designated city or county officer, department, or instrumentality” for “the city”.Enacted provision · exact public law section
(2) by inserting “or county” after “city” each place it appears in subsections (a) and (b) (other than in subsection (a)(1));Tax Reduction and Simplification Act of 1977
Pub. L. 95–30 § 408(a)(2) · 91 Stat. 126
Substituted · 5 U.S.C. § 5520(b)
Pub. L. 95–30, § 408(a)(2), substituted “city or county” for “city”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 95–30, § 408(a)(2), substituted “city or county” for “city”.Enacted provision · exact public law section
(2) by inserting “or county” after “city” each place it appears in subsections (a) and (b) (other than in subsection (a)(1));Tax Reduction and Simplification Act of 1977
Pub. L. 95–30 § 408(a)(4) · 91 Stat. 126
Added · 5 U.S.C. § 5520(c)
Pub. L. 95–30, § 408(a)(4), (5), added pars. (2) and (3)
Redesignated · 5 U.S.C. § 5520(c)
Pub. L. 95–30, § 408(a)(4), (5), redesignated former par. (2) as (4)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 95–30, § 408(a)(4), (5), added pars. (2) and (3) and redesignated former par. (2) as (4).Enacted provision · exact public law section
(4) by striking out “and” at the end of subsection (c) (1);Pub. L. 95–365 § 1 · 92 Stat. 599
Amended · 5 U.S.C. § 5520(a)
Pub. L. 95–365 designated existing provisions as cl. (i)
Inserted · 5 U.S.C. § 5520(a)
Pub. L. 95–365 inserted “, or whose regular place of Federal employment is not within,” after “not a resident of”
Added · 5 U.S.C. § 5520(a)
Pub. L. 95–365 added cl. (ii)
Source evidence
Code amendment note
Subsec. (a). Pub. L. 95–365 designated existing provisions as cl. (i), inserted “, or whose regular place of Federal employment is not within,” after “not a resident of”, and added cl. (ii).Effective date note
Pub. L. 95–365, § 2, Sept. 15, 1978, 92 Stat. 599, provided that: “The amendments made by the first section of this Act [amending this section] shall take effect on the 90th day after the date of the enactment of this Act [Sept. 15, 1978].”National Defense Authorization Act for Fiscal Years 1988 and 1989
Pub. L. 100–180 div. A title V § 505(2) · 101 Stat. 1019
Inserted · 5 U.S.C. § 5520(a)
Pub. L. 100–180 inserted “(other than service described in section 5517(d) of this title)” after “Armed Forces” in penultimate sentence
Source evidence
Code amendment note
Subsec. (a). Pub. L. 100–180 inserted “(other than service described in section 5517(d) of this title)” after “Armed Forces” in penultimate sentence.Enacted provision · exact public law section
(2) by inserting “(other than service described in section 5517(d) of this title)” in the third sentence of section 5520(a) after “Armed Forces”.
7 of 12 references resolved to an enrolled provision · 5 partial
Editorial Notes
Amendments1976–1987 · 4 rounds
1987
Subsec. (a). Pub. L. 100–180 inserted “(other than service described in section 5517(d) of this title)” after “Armed Forces” in penultimate sentence.
1978
Subsec. (a). Pub. L. 95–365 designated existing provisions as cl. (i), inserted “, or whose regular place of Federal employment is not within,” after “not a resident of”, and added cl. (ii).
1977
Pub. L. 95–30, § 408(a)(1), inserted “or county” after “city” in section catchline.
Subsec. (a). Pub. L. 95–30, § 408(a)(2), (3), substituted “city or county” for “city” in introductory provisions preceding par. (1), in par. (2), and in provisions following par. (2), and, in par. (1), substituted “a designated city or county officer, department, or instrumentality” for “the city”.
Subsec. (b). Pub. L. 95–30, § 408(a)(2), substituted “city or county” for “city”.
Subsec. (c). Pub. L. 95–30, § 408(a)(4), (5), added pars. (2) and (3) and redesignated former par. (2) as (4).
1976
Subsec. (c)(1). Pub. L. 94–358 substituted provision defining a city, for purposes of this section, as any unit of general local government which is classified a municipality by the Bureau of the Census, or is a town or township which in the opinion of the Secretary of the Treasury possesses powers and performs functions comparable to those associated with municipalities, is closely settled, and contains within its boundaries no incorporated places, as defined by the Bureau of the Census, within the political boundaries of which five hundred or more persons are regularly employed by all agencies of the Federal Government, for provision defining a city, for purposes of this section, as a city which is duly incorporated under the laws of a State and within the political boundaries of which five hundred or more persons are regularly employed by all agencies of the Federal Government.
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Pub. L. 95–365, § 2, , 92 Stat. 599, provided that: “The amendments made by the first section of this Act [amending this section] shall take effect on the 90th day after the date of the enactment of this Act [].”
Effective Date of 1977 Amendment
Pub. L. 95–30, title IV, § 408(c), , 91 Stat. 157, provided that: “The amendments made by this section [amending this section] shall take effect on the date of enactment of this Act [].”
Effective Date of 1976 Amendment
Pub. L. 94–358, § 2, , 90 Stat. 910, provided that: “The amendment made by the first section of this Act [amending this section] shall take effect on the date of the enactment of this Act [].”
Effective Date
Pub. L. 93–340, § 3, , 88 Stat. 295, provided that: “This section shall become effective on the date of enactment of this Act []. The provisions of the first section and section 2 of this Act [enacting this section and amending section 410 of Title 39, Postal Service] shall become effective on the ninetieth day following the date of enactment.”
Executive Documents
Executive Order No. 11833
Ex. Ord. No. 11833, , 40 F.R. 2673, which related to the withholding of city income or employment taxes by Federal agencies, was revoked by Ex. Ord. No. 11863, , 40 F.R. 25413, formerly set out below.
Executive Order No. 11863
Ex. Ord. No. 11863, , 40 F.R. 25431, which related to the withholding of city income or employment taxes by Federal agencies, was revoked by Ex. Ord. No. 11968, , 42 F.R. 6787, formerly set out below.
Executive Order No. 11968
Ex. Ord. No. 11968, , 42 F.R. 6787, which related to the withholding of District of Columbia, State and city income or employment taxes, was revoked by Ex. Ord. No. 11997, , 42 F.R. 31759, set out below.
Ex. Ord. No. 11997. Withholding of District of Columbia, State, City and County Income or Employment Taxes
Ex. Ord. No. 11997, , 42 F.R. 31759, provided:
By virtue of the authority vested in me by Sections 5516, 5517 and 5520 of Title 5 of the United States Code, and Section 301 of Title 3 of the United States Code, and as President of the United States of America, in order to authorize the Secretary of the Treasury to provide for the withholding of county income or employment taxes as authorized by Section 5520 of Title 5 of the United States Code as amended by Section 408 of Public Law 95–30, as well as to provide for the withholding of District of Columbia, State and city income or employment taxes, it is hereby ordered as follows:
Section 1. Whenever the Secretary of the Treasury enters into an agreement pursuant to Sections 5516, 5517 or 5520 of Title 5 of the United States Code, with the District of Columbia, a State, a city or a county, as the case may be, with regard to the withholding, by an agency of the United States, hereinafter referred to as an agency, of income or employment taxes from the pay of Federal employees or members of the Armed Forces, the Secretary of the Treasury shall ensure that each agreement is consistent with those sections and regulations, including this Order, issued thereunder.
Sec. 2. Each agreement shall provide (a) when tax withholding shall begin, (b) that the head of an agency may rely on the withholding certificate of an employee or a member of the Armed Forces in withholding taxes, (c) that the method for calculating the amount to be withheld for District of Columbia, State, city or county income or employment taxes shall produce approximately the tax required to be withheld by the District of Columbia or State law; or city or county ordinance, whichever is applicable, and (d) that procedures for the withholding, filing of returns, and payment of the withheld taxes to the District of Columbia, a State, a city or a county shall conform to the usual fiscal practices of agencies. Any agreement affecting members of the Armed Forces shall also provide that the head of an agency may rely on the certificate of legal residence of a member of the Armed Forces in determining his or her residence for tax withholding purposes. No agreement shall require the collection by an agency of delinquent tax liabilities of an employee or a member of the Armed Forces.
Sec. 3. The head of each agency shall designate, or provide for the designation of, the officers or employees whose duty it shall be to withhold taxes, file required returns, and direct payment of the taxes withheld, in accordance with this Order, any regulations prescribed by the Secretary of the Treasury, and the new applicable agreement.
Sec. 4. The Secretary of the Treasury is authorized to prescribe additional regulations to implement Sections 5516, 5517 and 5520 of Title 5 of the United States Code, and this Order.
Sec. 5. Executive Order No. 11968 of , is hereby revoked. However, all actions heretofore taken by the President or his delegates in respect of the matters affected by this Order and in force at the time of the issuance of this Order, including any regulations prescribed or approved by the President or his delegates in respect of such matters and any existing agreements approved by his delegates, shall, except as they may be inconsistent with the provisions of this Order, remain in effect until amended, modified, or revoked pursuant to the authority conferred by this Order, unless sooner terminated by operation of law.
Jimmy Carter.
Credits
1974–1987 · 5 acts
- 1974Added Pub. L. 93–340, § 1(a), , 88 Stat. 294
- 1976amended Pub. L. 94–358, § 1, , 90 Stat. 910
- 1977Pub. L. 95–30, title IV, § 408(a), , 91 Stat. 157
- 1978Pub. L. 95–365, § 1, , 92 Stat. 599
- 1987Pub. L. 100–180, div. A, title V, § 505(2), , 101 Stat. 1086.
Show as published
(Added Pub. L. 93–340, § 1(a), , 88 Stat. 294; amended Pub. L. 94–358, § 1, , 90 Stat. 910; Pub. L. 95–30, title IV, § 408(a), , 91 Stat. 157; Pub. L. 95–365, § 1, , 92 Stat. 599; Pub. L. 100–180, div. A, title V, § 505(2), , 101 Stat. 1086.)