Page:United States Statutes at Large Volume 90 Part 2.djvu/237

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1705

ment is made' for 'whose regular place of Federal employment is within the State with which the agreement is made'." (2)

W I T H H O L D I N G OF DISTRICT INCOME TAXES.—Subsection

(a)

of section 5516 of title 5, United States Code, is amended— (A) by striking out in the t h i r d sentence " p a y for service as a member of the armed forces, or to "; and (B) by a d d i n g after the t h i r d sentence the following new sentence: " I n the case of p a y for service as a member of the armed forces, the second sentence of this subsection shall be applied by substituting 'who are residents of the District of Columbia for 'whose regular place of employment is within the District of Columbia'." (b) W I T H H O L D I N G STATE AND C I T Y I N C O M E T A X E S F R O M THE C O M PENSATION or MEMBERS OF THE NATIONAL GUARD OR THE READY R E -

SERVE.—Section 5517 of title 5, United States Code, is amended by a d d i n g at the end thereof the following new subsection: " (d) For the purpose of this section and sections 5516 and 5520, the terms 'serve as a member of the armed forces' and 'service as a member of the A r m e d Forces' do not include— " (1) participation in exercises or the performance of d u t y under section 502 of title 32, United States Code, by a member of the National G u a r d; and " (2) participation in scheduled drills or t r a i n i n g periods, or service on active duty for t r a i n i n g, under section 270(a) of title 10, United States Code, by a member of the Ready Reserve."

Definitions, 5 USC 5516, 5520.

(c) VOLUNTARY W I T H H O L D I N G OF STATE I N C O M E TAXES F R O M THE COMPENSATION OF FEDERAL E M P L O Y E E S. — Paragraph s (1) and (2) of

section 5517(a) of title 5, United States Code, are amended to read as follows: " (1) provides for the collection of a tax either by imposing on employers generally the duty of withholding sums from the p a y of employees and making returns of the sums to the State, or by r a n t i n g to employers generally the authority to withhold sums rom the p a y of employees if any employee voluntarily elects to have such sums withheld; and " (2) imposes the d u t y or g r a n t s the authority to withhold generally with respect to the p a y of employees who are residents of the State; ".

f

(d) W I T H H O L D I N G T A X ON CERTAIN GAMBLING W I N N I N G S. — S e c t i o n

3402 (relating to income tax collected a t source) is amended by a d d i n g a t the end thereof the following new subsection: " (q) EXTENSION or NINGS.—

W I T H H O L D I N G TO CERTAIN GAMBLING

WIN-

" (1) GENERAL RULE.—Every person, including the Government of the United States, a State, or a political subdivision thereof, or any instrumentalities of the foregoing, making any payment of winnings which are subject to withholding shall deduct and withhold from such payment a tax in an amount equal to 20 percent of such payment. "(2)

E X E M P T I O N WHERE TAX OTHERWISE W I T H H E L D. — I n

the

case of any payment of winnings which are subject to withholding made to a nonresident alien individual or a foreign corporation, the tax imposed under paragraph (1) shall not apply to any such payment subject to tax under section 1441(a) (relating to withholding on nonresident aliens) or tax under section 1442(a) (relating to withholding on foreign corporations).

26 USC 3402.

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