Internal Revenue Code · 26 U.S.C.
§ 3321. Imposition of tax
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 3321
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- August 12, 1983 by Pub. L. 98–76
- Last amended
- November 10, 1988 by Pub. L. 100–647
- Amendments
- 2 dated changes in the source credit
- Length
- 3 subsections · 238 words · about 1 min to read
- Cross-references
- cites 0; cited by 0 Code sections and 3 other regulations
There 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.
There 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.
The 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.
(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.)
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited in 3 regulations not issued under it
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 100–647
- Amended by Pub. L. 99–272Parts changed in 1986: (c)
- Added by Pub. L. 98–76
Where it sits in the Code
Nearby sections
- § 3321 Imposition of tax
- § 3322 Definitions
- § 3323 Omitted
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
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—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.”
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by section 1018(u)(17) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Pub. 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 (b) [set out below], shall apply to remuneration paid after December 31, 1988.”
Effective Date
Pub. 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
Pub. L. 100–647, title VII, § 7106(b), 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 (b) 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.”