§5517 — Title 5 Government Organization and Employees | U.S. Code

Summary

Lets states require or allow employers to withhold state income tax from employees who live in that state, so long as the state law applies generally to employers (either by making withholding mandatory for employers or by letting employers withhold when an employee asks). The United States will not agree to any state rule that treats the federal government worse than other employers or that makes the U.S. or its employees pay penalties because of withholding. A federal agency may not accept money from a state to do that withholding. State: a State, territory, possession, or commonwealth of the United States. “Serve as a member of the armed forces”: also includes National Guard duty under 32 U.S.C. §502 and Ready Reserve drills or training and active duty for training under 10 U.S.C. §10147.

Title 5, §5517

Government Organization and Employees — Source: USLM XML via OLRC

(a)When a State statute—

(1)provides for the collection of a tax either by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to the State, or by granting to employers generally the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld; and

(2)imposes the duty or grants the authority to withhold generally with respect to the pay of employees who are residents of the State;

(b)This section does not give the consent of the United States to the application of a statute 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 State for services performed in withholding State income taxes from the pay of the employees of the agency.

(c)For the purpose of this section, “State” means a State, territory, possession, or commonwealth of the United States.

(d)For the purpose of this section and section 5516 and 5520, the terms “serve as a member of the armed forces” and “service as a member of the Armed Forces” include—

(1)participation in exercises or the performance of duty under section 502 of title 32, United States Code, by a member of the National Guard; and

(2)participation in scheduled drills or training periods, or service on active duty for training, under section 10147 of title 10, United States Code, by a member of the Ready Reserve.

Notes & Related Subsidiaries

Historical and Revision Notes

DerivationU.S. CodeRevised Statutes andStatutes at Large 5 U.S.C. 84b.

July 17, 1952, ch. 940, § 1, 66 Stat. 765. Sept. 23, 1959, Pub. L. 86–371 “Sec. 1”, 73 Stat. 653. 5 U.S.C. 84c.

July 17, 1952, ch. 940, § 2, 66 Stat. 766. Sept. 23, 1959, Pub. L. 86–371 “Sec. 2”, 73 Stat. 653. In subsection (b), the words “after

March 31, 1959” are omitted as executed. Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Editorial Notes

Amendments

1997—Subsec. (c). Pub. L. 105–34 substituted “, territory, possession, or commonwealth” for “or territory or possession”. 1994—Subsec. (d)(2). Pub. L. 103–337 substituted “section 10147” for “section 270(a)”. 1987—Subsec. (d). Pub. L. 100–180 struck out “do not” before “include”. 1976—Subsec. (a). Pub. L. 94–455, § 1207(a)(1), (c), inserted in par. (1) provision relating to the grant to employers of the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld, inserted in par. (2) “or grants the authority” after “imposes the duty”, and substituted in text following par. (2) provisions that in the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made” for provision that the agreement may not apply to pay for service as a member of the armed forces. Subsec. (d). Pub. L. 94–455, § 1207(b), added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 Amendment section 1462(b) of Pub. L. 105–34 provided that: “The amendment made by subsection (a) [amending this section] shall take effect on January 1, 1998.”

Effective Date

of 1994 AmendmentAmendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an

Effective Date

note under section 10001 of Title 10, Armed Forces.

Effective Date

of 1976 AmendmentAmendment by section 1207(a)(1) of Pub. L. 94–455 applicable to wages withheld after the 120-day period following any request for an agreement after Oct. 4, 1976, see section 1207(f)(1) of Pub. L. 94–455, set out as a note under section 5516 of this title. Pub. L. 94–455, title XII, § 1207(f)(2), Oct. 4, 1976, 90 Stat. 1708, provided that: “The

Amendments

made by subsections (b) and (c) [amending this section] shall apply to wages withheld after the 120-day period following the date of the enactment of this Act [Oct. 4, 1976].”

Executive Documents

Executive Order No. 10407 Ex. Ord. No. 10407, Nov. 7, 1952, 17 F.R. 10132, which related to

Regulations

governing agreements concerning withholding of state or territorial income taxes, was revoked by Ex. Ord. No. 11968, Jan. 31, 1977, 42 F.R. 6787, formerly set out as a note under section 5520 of this title.

§5517 Withholding State income taxes

Summary

Title 5, §5517

Notes & Related Subsidiaries

Historical and Revision Notes

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Effective Date

Amendments

Executive Documents

Regulations

Citations & Metadata