4 U.S.C. § 111 — Same; taxation affecting Federal employees; income tax

submitted 60 years ago by Pub. L. 89-554 to r/title-4-FLAG-AND-SEAL-SEAT-OF-GOVERNMENT-AND-THE-STATES · 259 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets states and local governments tax the pay of federal employees, as long as the tax doesn't single them out because they work for the government. It also sets special state tax rules for federal employees at certain hydroelectric dams on the Columbia and Missouri Rivers.

(a) General Rule: the United States agrees to let a proper state or local tax authority tax the pay of anyone working for the federal government, a territory, the District of Columbia, or an agency of any of these — as long as the tax doesn't discriminate against the employee just because their pay comes from the government. (b) Federal Hydroelectric Facilities on the Columbia River: pay for work at a federally owned hydroelectric facility on the Columbia River that is partly in Oregon and partly in Washington can be taxed by whichever of those states, or its local governments, the employee lives in. (c) Federal Hydroelectric Facilities on the Missouri River: the same rule applies to a federally owned hydroelectric facility on the Missouri River that is partly in South Dakota and partly in Nebraska — that state or its local governments can tax the employee based on where the employee lives.

the actual law source: uscode.house.gov ↗public domain

(a)General Rule.—

The United States consents to the taxation of pay or compensation for personal service as an officer or employee of the United States, a territory or possession or political subdivision thereof, the government of the District of Columbia, or an agency or instrumentality of one or more of the foregoing, by a duly constituted taxing authority having jurisdiction, if the taxation does not discriminate against the officer or employee because of the source of the pay or compensation.

(b)Treatment of Certain Federal Employees Employed at Federal Hydroelectric Facilities Located on the Columbia River.—

Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility—

(1)

which is owned by the United States;

(2)

which is located on the Columbia River; and

(3)

portions of which are within the States of Oregon and Washington,

shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident.

(c)Treatment of Certain Federal Employees Employed at Federal Hydroelectric Facilities Located on the Missouri River.—

Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility—

(1)

which is owned by the United States;

(2)

which is located on the Missouri River; and

(3)

portions of which are within the States of South Dakota and Nebraska,

shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident.

Source credit: (Added Pub. L. 89–554, § 2(c), Sept. 6, 1966, 80 Stat. 608; amended Pub. L. 105–261, div. A, title X, § 1075(b)(1), Oct. 17, 1998, 112 Stat. 2138.)

history & why it existsrecord from the source credit

1966Enacted · Pub. L. 89-554 · 80 Stat. 608
1998Amended · Pub. L. 105-261 · 112 Stat. 2138

A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-554 on 1966-09-06.

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