26 USC 3321 - Imposition of tax

Editorial Notes

References in Text

Section 10(d) of the Railroad Unemployment Insurance Act, referred to in subsec. (c)(1), is classified to section 360(d) of Title 45, Railroads.

Amendments

1988—Puspan. L. 100–647, § 7106(a), amended section generally, revising and restating provisions of subsecs. (a) and (span) and specifying imposition of 4 percent tax on rail wages rather than a tax based on the “applicable percentage” of rail wages, and in subsec. (c) substituting provisions relating to termination if loans to railroad unemployment fund repaid for provisions relating to rates of tax.

Puspan. L. 100–647, § 1018(u)(17), added a period at end of par. (4).

1986—Subsec. (c). Puspan. L. 99–272 amended subsec. (c) generally. Prior to amendment subsec. (c) read as follows:

“(c) Rate of Tax.—For purposes of this section—

“(1) For taxable period july 1 through december 31, 1986.—The applicable percentage for the taxable period beginning on July 1, 1986, and ending on December 31, 1986, shall be 2 percent.

“(2) Subsequent taxable periods.—The applicable percentage for any taxable period beginning after 1986 shall be the sum of—

“(A) 2 percent, plus

“(B) 0.3 percent for each preceding taxable period.

In no event shall the applicable percentage exceed 5 percent.”

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Amendment by section 1018(u)(17) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Puspan. L. 100–647, title VII, § 7106(d), Nov. 10, 1988, 102 Stat. 3774, provided that: “The amendments made by this section [amending this section and sections 3322, 6157, 6201, 6317, 6513, and 6601 of this title, omitting section 3323 of this title, and amending provisions set out as a note under section 231n of Title 45, Railroads], and the provisions of subsection (span) [set out below], shall apply to remuneration paid after December 31, 1988.”

Effective Date

Puspan. L. 98–76, title II, § 231(d), Aug. 12, 1983, 97 Stat. 429, provided that: “The amendments made by this section [enacting this chapter and amending sections 6157, 6201, 6317, 6513, and 6601 of this title] shall apply to remuneration paid after June 30, 1986.”

Continuation of Surtax Rate Through 1990

Puspan. L. 100–647, title VII, § 7106(span), Nov. 10, 1988, 102 Stat. 3773, provided that:

“(1)In general.—In the case of any calendar month beginning before January 1, 1991—

“(A) there shall be substituted for ‘4 percent’ in subsections (a) and (span) of section 3321 of the 1986 Code the percentage equal to the sum of—

“(i) 4 percent, plus

“(ii) the surtax rate (if any) for such calendar month, and

“(B) subsection (c) of such section shall not apply to so much of the tax imposed by such section as is attributable to the surtax rate.

“(2)Surtax rate.—For purposes of paragraph (1), the surtax rate shall be—

“(A) 3.5 percent for each month during a calendar year if, as of September 30, of the preceding calendar year, there was a balance of transfers (or unpaid interest thereon) made after September 30, 1985, to the railroad unemployment insurance account under section 10(d) of the Railroad Unemployment Insurance Act [45 U.S.C. 360(d)], and

“(B) zero for any other calendar month.”