Page:United States Statutes at Large Volume 84 Part 2.djvu/170

 1500

PUBLIC LA\^ 91-569-DEC. 23, 1970 "EXEMPTION

OF

CERTAIN

COMPENSATION

OF

EMPLOYEES

[84 STAT. FROM

WITH-

H O L D I N G FOR I N C O M E T A X PURPOSES FOR OTHER THAN STATE OR SUBDIVISION OF RESIDENCE OR STATE OR SUBDIVISION WHEREIN MORE THAN FIFTY PER CENTUM OF COMPENSATION IS EARNED

"SEC. 26. (a) No part of the compensation p)aid by any railroad, express company, or sleeping car company, subject to the provisions of this part, to an employee (1) who performs his regularly assigned duties as such an employee on a locomotive, car, or other track-borne vehicle in more than one State, or (2) who is engaged principally in maintaining roadways, signals, communications, and structures or in operating motortrucks out of railroad terminals in more than one State, shall be withheld for income tax purposes pursuant to the laws of any State or subdivision thereof other than the State or subdivision wherein more than 50 per centum of the compensation paid by the carrier to such employee is earned: Provided, however, That if the employee did not earn more than 50 per centum of his compensation from said carrier in any one State or any subdivision thereof during the preceding calendar year, then withholding shall be required only for the State or subdivision of the employee's residence, as shown on the employment records of any such carrier; nor shall any such carrier file any information return or other report for income tax purposes with respect to such compensation with any State or subdivision thereof other than such State or subdivision of residence and the State or subdivision for which the withholding of such tax has been required under this subsection. " (b)(1) For the purposes of subsection (a)(1), an employee shall be deemed to have earned more than 50 per centum of his compensation in any State or subdivision thereof in which the mileage traveled by him in such State or subdivision is more than 50 per centum of the total mileage traveled by him in the calendar year while so employed. "(2) For the purposes of subsection (a)(2), an employee shall be deemed to have earned more than 50 per centum of his compensation in any State or subdivision thereof in which the time worked by him in such State or subdivision is more than 50 per centum of the total timie worked by him in the calendar year while so employed. "State." "(c) For the purposes of this section the term 'State' also means the ««compensation."District of Columbia; and the term 'compensation' shall mean all moneys received for services rendered by an employee, as defined in subsection (a) in the performance of his duties and shall include wages and salary." 54*stau 920?' SEC. 2. (a) Section 202(b) of^ the Interstate Commerce Act is 79 Stat! 648'. amended by inserting after "Nothing in this part" a comma and the 49 USC 302. following: "except as provided in section 226A,". Tg'^usc 301. (b) Part II of the Interstate Commerce Act is amended by inserting after section 226 a new section as follows: " E X E M P T I O N OF CERTAIN C O M P E N S A T I O N OF E M P L O Y E E S F R O M WITHHOLD-

ING FOR I N C O M E T A X PURPOSES FOR OTHER THAN STATE OR SUBDIVISION OF RESIDENCE OR STATE OR SUBDIVISION WHEREIN MORE THAN FIFTY PER CENTUM OF COMPENSATION IS EARNED

"SEC. 226A. (a) No part of the compensation paid by any motor carrier subject to the provisions of this part, or by any private carrier of property by motor vehicle, to any employee who performs his regularly assigned duties as such an employee on a motor vehicle in more than one State, shall be withheld for income tax purposes pursuant to the laws

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