Termination of Rail Employer Excise Tax

§ 3321. Imposition of tax(a) General ruleThere is hereby imposed on every rail employer for each calendar month an excise tax, with respect to having individuals in his employ, equal to 4 percent of the total rail wages paid by him during such month. (b) Tax on employee representatives(1) In generalThere is hereby imposed on the income of each employee representative a tax equal to 4 percent of the rail wages paid to him during the calendar month. (2) Determination of wagesThe rail wages of an employee representative for purposes of paragraph (1) shall be determined in the same manner and with the same effect as if the employee organization by which such employee representative is employed were a rail employer. (c) Termination if loans to railroad unemployment fund repaidThe tax imposed by this section shall not apply to rail wages paid on or after the 1st day of any calendar month if, as of such 1st day, there is—(1) no balance of transfers made before October 1, 1985, to the railroad unemployment insurance account under section 10(d) of the Railroad Unemployment Insurance Act, and (2) no unpaid interest on such transfers. (Added Pub. L. 98–76, title II, § 231(a), Aug. 12, 1983, 97 Stat. 426; amended Pub. L. 99–272, title XIII, § 13301(a), Apr. 7, 1986, 100 Stat. 325; Pub. L. 100–647, title I, § 1018(u)(17), title VIII, § 7106(a), Nov. 10, 1988, 102 Stat. 3590, 3772.) Editorial Notes References in TextSection 10(d) of the Railroad Unemployment Insurance Act, referred to in subsec. (c)(1), is classified to section 360(d) of Title 45, Railroads. Amendments1988—Pub. L. 100–647, § 7106(a), amended section generally, revising and restating provisions of subsecs. (a) and (b) 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. Pub. L. 100–647, § 1018(u)(17), added a period at end of par. (4). 1986—Subsec. (c). Pub. 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.”