§111 — Title 4 Flag and Seal; Seat of Government; States | U.S. Code

Summary

A tax authority that has the legal right to tax may tax pay or wages for personal services when someone works as an officer or employee of the United States, a territory or possession, a local government unit, the District of Columbia, or an agency or instrumentality. The tax must not treat that person unfairly just because their pay comes from the United States. The rule also covers pay the United States gives to its employees at U.S.-owned hydroelectric facilities on the Columbia River that are partly in Oregon and Washington, and at U.S.-owned hydroelectric facilities on the Missouri River that are partly in South Dakota and Nebraska.

Title 4, §111

Flag and Seal; Seat of Government; States — Source: USLM XML via OLRC

(a)The United States consents to the taxation of pay or compensation for personal service as an officer or employee of the United States, a territory or possession or political subdivision thereof, the government of the District of Columbia, or an agency or instrumentality of one or more of the foregoing, by a duly constituted taxing authority having jurisdiction, if the taxation does not discriminate against the officer or employee because of the source of the pay or compensation.

(b)Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility—

(1)which is owned by the United States;

(2)which is located on the Columbia River; and

(3)portions of which are within the States of Oregon and Washington,

(c)Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility—

(1)which is owned by the United States;

(2)which is located on the Missouri River; and

(3)portions of which are within the States of South Dakota and Nebraska,

Notes & Related Subsidiaries

Historical and Revision Notes

DerivationU.S. CodeRevised Statutes andStatutes at Large 5 U.S.C. 84aApr. 12, 1939, ch. 59, § 4, 53 Stat. 575. The words “received after December 31, 1938,” are omitted as obsolete. The words “pay or” are added before “compensation” for clarity as the word “pay” is used throughout title 5, United States Code, to refer to the remuneration, salary, wages, or compensation for the personal services of a Federal employee. The word “territory” is not capitalized as there are no longer any “Territories.” The words “to tax such compensation” are omitted as unnecessary.

Editorial Notes

Amendments

1998—Pub. L. 105–261 designated existing provisions as subsec. (a), inserted heading, and added subsecs. (b) and (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 Amendment Pub. L. 105–261, div. A, title X, § 1075(b)(2), Oct. 17, 1998, 112 Stat. 2139, provided that: “The amendment made by this subsection [amending this section] shall apply to pay and compensation paid after the date of the enactment of this Act [Oct. 17, 1998].”

§111 Same; Taxation Affecting Federal Employees; Income Tax