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PUBLIC LAW 93-340-JULY 10, 1974

Public Law 93-340 July 10, 1974 —'•"• ^ ' ^^^°J

[88 STAT.

v:

AN ACT To amend title 5 of the United States Code (relating to Government organization and employees) to assist Federal employees in meeting their tax obligations under city ordinances.

Be it enacted by the Senate and House of Representatives of the pZyteT.^ ^'"' United States of America in Congress assembled, That (a) subchapter Withholding II of chapter 55 of title 5, United States Code, is amended by adding certain city at the end thereof the following new section: taxes "§ 5520. Withholding of city income or employment taxes " (a) When a city ordinance— " (1) 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 the city; and "(2) imposes the duty to withhold generally on the payment of compensation earned within the jurisdiction of the city in the case of employees whose regular place of employment is within such jurisdiction; the Secretary of the Treasury, under regulations prcocribed by the Agreement with Prcsidcut, shall cutcr into an agreement with the city within 120 days city of a request for agreement by the proper city official. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the city ordinance in the case of employees of the agency who are subject to the tax and whose regular place of Federal employment is within the jurisdiction of the city with which the agreement is made. The agreement may not apply to pay for service as a member of the Armed Forces. The agreement may not permit withholding of a city tax from the pay of an employee who is not a resident of the State in which that city is located unless the employee consents to the withholding. " (b) 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 for services performed in withholding city income or employment taxes from the pay of employees of the agency. "(c) For the purpose of this section— "City." "(1) 'city' means a city which is duly incorporated under the laws of a State and within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government; and "Agency." a^g) 'agency'meaus— " (A) an Executive agency; " (B) the judicial branch; and " (C) the United States Postal Service." (b) The analysis of subchapter II of chapter 55 of title 5, United States Code, is amended by adding at the end thereof— "5520. Withholding of city income or employment taxes.".

^"^''^' 5 USC 5532.

SEC. 2. Section 410(b) of title 39, United States Code, is amended by striking out the words "and section 5532 (dual p a y) " and inserting in lieu thereof "section 5520 (withholding city income or employment taxes), and section 5532 (dual p a y) ".

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