Page:United States Statutes at Large Volume 53 Part 2.djvu/99

 53 STAT.] 76TH CONG., IST SESS.-CH. 59-APR. 12, 1939 political subdivision thereof, or any agency or instrumentality of any one or more of the foregoing)". SEc. 2 . Section 116 (b) of the Internal Revenue Code (exempting Teachers in Alaska compensation of teachers in Alaska and Hawaii from income tax) sation. is repealed. C.§ 116 . SEc. 3 . Section 22 (a) of the Internal Revenue Code is amended Judge" taking offie6 by adding at the end thereof a new sentence to read as follows: 932, inclusion otfcom pensation in gross in- "In the case of judges of courts of the United States who took office come. on or before June 6, 1932, the compensation received as such shall f R', p (a) be included in gross income". SEC. 4 . The United States hereby consents to the taxation of com- utaationofsentto pensation, received after December 31, 1938, for personal service Federal,etc.,officer or employee received as an officer or employee of the United States, any Territory or ater loeeembcr 3l1, possession or political subdivision thereof, the District of Columbia, 1938. or any agency or instrumentality of any one or more of the fore- going, by any duly constituted taxing authority having jurisdiction to tax such compensation, if such taxation does not discriminate Condition against such officer or employee because of the source of such compensation. TITLE II SEC. 201. Any amount of income tax (including interest, additions Income tax. to tax, and additional amounts) for any taxable year beginning prior state etc., persoelft to January 1, 1938, to the extent attributable to compensation for in designated cass personal service as an officer or employee of a State, or any political subdivision thereof, or any agency or instrumentality of any one or more of the foregoing- (a) shall not be assessed, and no proceeding in court for the collec- tion thereof shall be begun or prosecuted (unless pursuant to an assessment made prior to January 1, 1939); (b) if assessed after December 31, 1938, the assessment shall be abated, and any amount collected in pursuance of such assessment shall be credited or refunded in the same manner as in the case of an income tax erroneously collected; and (c) shall, if collected on or before the date of the enactment of this Act, be credited or refunded in the same manner as in the case of an income tax erroneously collected, in the following cases- (1) Where a claim for refund of such amount was filed before January 19, 1939, and was not disallowed on or before the date of the enactment of this Act; (2) Where such claim was so filed but has been disallowed and the time for beginning suit with respect thereto has not expired on the date of the enactment of this Act; (3) Where a suit for the recovery of such amount is pending on the date of the enactment of this Act; and (4) Where a petition to the Board of Tax Appeals has been filed with respect to such amount and the Board's decision has not become final before the date of the enactment of this Act. SEC. 202. In the case of any taxable year beginning after December Tax exemption of 31, 1937, and before January 1, 1939, compensation for personal pnsel inStdagept service as an officer or employee of a State, or any political subdivision ri o d specified. thereof, or any agency or instrumentality of any one or more of the foregoing, shall not be included in the gross income of any individual under Title I of the Revenue Act of 1938 and shall be exempt from s62st s44. Supp. taxation under such title, if such individual either- iv, §1-330b. (a) did not include in his return for a taxable year beginning after December 31, 1936, and before January 1, 1938, any amount as com- pensation for personal service as an officer or employee of a State or any political subdivision thereof, or any agency or instrumentality of any one or more of the foregoing; or 575

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