
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-90 Section 203(a)]
[Document affected by Public Law 107-90 Section 204(b)]
[Document affected by Public Law 107-90 Section 203(c)]
[CITE: 26USC3211]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                      Subtitle C--Employment Taxes
 
                 CHAPTER 22--RAILROAD RETIREMENT TAX ACT
 
              Subchapter B--Tax on Employee Representatives
 
Sec. 3211. Rate of tax


(a) Imposition of taxes

                           (1) Tier 1 tax

        In addition to other taxes, there is hereby imposed on the 
    income of each employee representative a tax equal to the applicable 
    percentage of the compensation received during any calendar year by 
    such employee representative for services rendered by such employee 
    representative. For purposes of the preceding sentence, the term 
    ``applicable percentage'' means the percentage equal to the sum of 
    the rates of tax in effect under subsections (a) and (b) of section 
    3101 and subsections (a) and (b) of section 3111 for the calendar 
    year.

                           (2) Tier 2 tax

        In addition to other taxes, there is hereby imposed on the 
    income of each employee representative a tax equal to the following 
    percentage of the compensation received during any calendar year by 
    such employee representatives for services rendered by such employee 
    representative:

  In the case of compensation
    received during:                                  The rate shall be:
            1985................................                  13.75 
            1986 or thereafter..................                  14.75.
                         (3) Cross reference

            For application of different contribution bases with respect 
        to the taxes imposed by paragraphs (1) and (2), see section 
        3231(e)(2).

    (b) In addition to other taxes, there is hereby imposed on the 
income of each employee representative a tax at a rate equal to the rate 
of excise tax imposed on every employer, provided for in section 
3221(c), for each man-hour for which compensation is paid to him for 
services rendered as an employee representative.

(Aug. 16, 1954, ch. 736, 68A Stat. 432; Aug. 31, 1954, ch. 1164, pt. II, 
Sec. 206(a), 68 Stat. 1040; Pub. L. 86-28, pt. II, Sec. 201(c), May 19, 
1959, 73 Stat. 29; Pub. L. 88-133, title II, Sec. 201, Oct. 5, 1963, 77 
Stat. 221; Pub. L. 89-97, title I, Secs. 105(b)(2), 111(c)(2), July 30, 
1965, 79 Stat. 335, 342; Pub. L. 89-212, Secs. 4, 5(b), Sept. 29, 1965, 
79 Stat. 861; Pub. L. 89-699, title III, Sec. 301 (b), (d), Oct. 30, 
1966, 80 Stat. 1078; Pub. L. 89-700, title III, Sec. 301(v), (vi), Oct. 
30, 1966, 80 Stat. 1088, 1089; Pub. L. 91-215, Sec. 4, Mar. 17, 1970, 84 
Stat. 70; Pub. L. 93-69, title I, Sec. 102(c), July 10, 1973, 87 Stat. 
162; Pub. L. 94-93, title II, Sec. 202, Aug. 9, 1975, 89 Stat. 466; Pub. 
L. 94-455, title XIX, Sec. 1903(a)(8), Oct. 4, 1976, 90 Stat. 1807; Pub. 
L. 97-34, title VII, Sec. 741(b), Aug. 13, 1981, 95 Stat. 347; Pub. L. 
98-76, title II, Secs. 211(c), 223, Aug. 12, 1983, 97 Stat. 419, 421; 
Pub. L. 101-508, title V, Sec. 5125(b), Nov. 5, 1990, 104 Stat. 1388-
285.)


                               Amendments

    1990--Subsec. (a). Pub. L. 101-508 substituted ``applicable'' for 
``following'' before ``percentage of the'' and provision defining the 
term ``applicable percentage'' for provision specifying that in the case 
of compensation received during 1985 the rate of tax was 14.10 percent, 
for 1986 or 1987 the rate was 14.30 percent, for 1988 or 1989 the rate 
was 15.02 percent, and for 1990 or thereafter the rate was 15.30 
percent.
    1983--Subsec. (a). Pub. L. 98-76, Sec. 223, substituted provisions 
imposing a two tiered tax on each employee representative equal to the 
percentage of the compensation received during any calendar year by such 
employee representative for services rendered as is set out in 
accompanying tables, for provisions that had imposed on each employee 
representative a tax equal to 12.75 percent plus the sum of the rates of 
tax imposed with respect to wages by sections 3101(a), 3101(b), 3111(a), 
and 3111(b) of so much of the compensation paid in any calendar month to 
such employee representative for services rendered by him as was not in 
excess of an amount equal to one-twelfth of the current maximum annual 
taxable ``wage'' as defined in section 3121 for any month.
    Pub. L. 98-76, Sec. 211(c), substituted ``12.75 percent'' for 
``11.75 percent''.
    1981--Subsec. (a). Pub. L. 97-34 substituted ``11.75'' for ``9.5''.
    1976--Subsec. (a). Pub. L. 94-455 substituted ``3111(a), and 
3111(b)'' for ``3111(a), 3111(b)'', struck out ``of the Internal Revenue 
Code of 1954'' before ``of so much of the compensation'', ``after 
September 30, 1973,'' after ``rendered by him'', ``of the Internal 
Revenue Code of 1954'' after ``as defined in section 3121'', and ``after 
September 30, 1973'' after ``for any month''.
    1975--Subsec. (a). Pub. L. 94-93 inserted ``in any calendar month'' 
after ``compensation paid''.
    1973--Subsec. (a). Pub. L. 93-69 substituted new tax rate provisions 
on income of employee representatives for services rendered after Sept. 
30, 1973, for former provisions which prescribed 12\1/2\, 13, 14, 14\1/
2\, and 15 percent on income for services rendered after Sept. 30, 1965, 
Dec. 31, 1965, Dec. 31, 1966, Dec. 31, 1967, and Dec. 31, 1968, 
respectively, as is not in excess of (i) $450, or (ii) an amount equal 
to one-twelfth of the current maximum annual taxable ``wages'' as 
defined in section 3121 of the Internal Revenue Code of 1954, whichever 
is greater, for any month after September 30, 1965: Provided, That the 
rate of tax imposed by this section shall be increased, with respect to 
compensation paid for services rendered after September 30, 1965, by a 
number of percentage points (including fractional points) equal at any 
given time to twice the number of percentage points (including 
fractional points) by which the rate of the tax imposed with respect to 
wages by section 3101(a) plus the rate imposed by section 3101(b) at 
such time exceeds 2\3/4\ percent (the rate provided by paragraph (2) of 
section 3101 as amended by the Social Security Amendments of 1956).
    1970--Subsec. (b). Pub. L. 91-215 substituted the rate of excise tax 
imposed on every employer under section 3221(c) of this title for a flat 
2-cents per man hour tax as the rate for additional taxes imposed on the 
income of employee representatives for each man hour of compensation 
paid.
    1966--Pub. L. 89-700 substituted ``rendered after September 30, 
1965'' for ``rendered after December 31, 1964'', and ``(i) $450, or (ii) 
an amount equal to one-twelfth of the current maximum annual taxable 
`wages' as defined in section 3121 of the Internal Revenue Code of 1954, 
whichever is greater, for any month after September 30, 1965'' for 
``$400 for any calendar month before the calendar month next following 
the month in which this provision was amended in 1963, or $450 for any 
calendar month after the month in which this provision was so amended 
and before the calendar month next following the calendar month in which 
this provision was amended in 1965, or (i) $450, or (ii) an amount equal 
to one-twelfth of the current maximum annual taxable `wages' as defined 
in section 3121 of the Internal Revenue Code of 1954, whichever is 
greater, for any month after the month in which this provision was so 
amended''.
    Pub. L. 89-699, Sec. 301(b), (d), designated existing provisions as 
subsec. (a), and substituted ``14 percent'' for ``13\1/2\ percent'' in 
subd. (3), ``14\1/2\ percent'' for ``14 percent'' in subd. (4), and ``15 
percent'' for ``14\1/2\ percent'' in subd. (5).
    Subsec. (b). Pub. L. 89-699, Sec. 301(d), added subsec. (b).
    1965--Pub. L. 89-212 substituted pars. (1) to (5) for former pars. 
(1) and (2) which imposed a tax equal to 13\1/2\ percent of so much of 
the compensation paid to such employee representative for services 
rendered by him after the month in which this provision was amended in 
1959, and before Jan. 1, 1962, and 14\1/2\ percent of so much of the 
compensation paid to such employee representative for services rendered 
by him after Dec. 31, 1961, and inserted ``and before the calendar month 
next following the calendar month in which this provision was amended in 
1965, or (i) $450, or (ii) an amount equal to one-twelfth of the current 
maximum annual taxable `wages' as defined in section 3121, whichever is 
greater, for any month after the month in which this provision was so 
amended''.
    Pub. L. 89-97 substituted ``the rate of the tax imposed with respect 
to wages by section 3101(a) at such time exceeds 2\3/4\ percent (the 
rate provided by paragraph (2) of section 3101 as amended by the Social 
Security Amendments of 1956)'' for ``the rate of the tax imposed with 
respect to wages by section 3101 at such time exceeds the rate provided 
by paragraph (2) of such section 3101 as amended by the Social Security 
Amendments of 1956'' and inserted ``plus the rate imposed by section 
3101(b)'' after ``section 3101(a)'', respectively.
    1963--Pub. L. 88-133 limited the existing taxable compensation base 
of $400 to any calendar month before Nov. 1963 and increased such base 
to $450 for any calendar month after Oct. 1963.
    1959--Pub. L. 86-28 increased the tax from 12\1/2\ percent of the 
compensation not in excess of $350 for any calendar month to 13\1/2\ 
percent of the compensation not in excess of $400 for any calendar month 
for services rendered before Jan. 1, 1962, and to 14\1/2\ percent for 
services rendered after Dec. 31, 1961, and required an increase in the 
rate of tax with respect to compensation paid for services rendered 
after December 31, 1964, by a number of percentage points equal at any 
given time to twice the number of percentage points by which the rate of 
tax imposed by section 3101 of this title at such time exceeds the rate 
provided by par. (2) of such section 3101 as amended by the Social 
Security Amendments of 1956.
    1954--Act Aug. 31, 1954, substituted ``$350'' for ``$300''.


            Effective and Termination Dates of 1983 Amendment

    Amendment by section 211(c) of Pub. L. 98-76 applicable to 
compensation paid for services rendered after Dec. 31, 1983, and before 
Jan. 1, 1985, see section 212 of Pub. L. 98-76, set out as a note under 
section 3201 of this title.
    Amendment by section 223 of Pub. L. 98-76 applicable to remuneration 
paid after Dec. 31, 1984, see section 227(a) of Pub. L. 98-76, set out 
as a note under section 3201 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to compensation paid for 
services rendered after Sept. 30, 1981, see section 741(e) of Pub. L. 
97-34, set out as a note under section 3201 of this title.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-455 applicable with respect to compensation 
paid for services rendered after Dec. 31, 1976, see section 1903(d) of 
Pub. L. 94-455, set out as a note under section 3101 of this title.


                    Effective Date of 1975 Amendment

    Amendment by Pub. L. 94-93 applicable for taxable years ending on or 
after Aug. 9, 1975, and for taxable years ending before Aug. 9, 1975, as 
to which the period for assessment and collection of tax or the filing 
of a claim for credit or refund has not expired on Aug. 9, 1975, see 
section 207 of Pub. L. 94-93, set out as a note under section 3201 of 
this title.


                    Effective Date of 1973 Amendment

    Amendment by Pub. L. 93-69 effective Oct. 1, 1973, and applicable 
only with respect to compensation paid for services rendered on or after 
Oct. 1, 1972; and applicable to railway labor organization covered by 
private supplemental pension plan as of Oct. 1, 1973, and subject to a 
moratorium, agreed to on or before Mar. 8, 1973, for changes in pay 
rates, on the earlier of (1) date of expiration of such moratorium, or 
(2) date as of which the railway labor organization through collective 
bargaining agreement makes amendment applicable, see section 109(b) of 
Pub. L. 93-69, set out as a note under section 3201 of this title.


                    Effective Date of 1966 Amendment

    Section 301(f) of Pub. L. 89-699, as amended by section 8 of Pub. L. 
91-215, provided that: ``The amendments made by subsections (d) and (e) 
of this section [amending this section and section 3221 of this title] 
shall be effective with respect to man-hours, beginning with the first 
month following enactment of this Act [Oct. 30, 1966], for which 
compensation is paid.''


                    Effective Date of 1965 Amendments

    Amendment by section 4 of Pub. L. 89-212 effective only with respect 
to calendar months after month in which Pub. L. 89-212 is enacted 
[September 1965], and amendment by section 5(b) of Pub. L. 89-212 
effective only with respect to compensation paid for services rendered 
after Sept. 30, 1965, see section 6 of Pub. L. 89-212, set out as a note 
under section 3201 of this title.
    Amendment by section 105(b)(2) of Pub. L. 89-97 effective with 
respect to compensation paid for services rendered after Dec. 31, 1965, 
see section 105(b)(4) of Pub. L. 89-97, set out as a note under section 
3201 of this title.
    Amendment by section 111(c)(2) of Pub. L. 89-97 applicable to 
calendar year 1966 or to any subsequent calendar year but only if by 
October 1 immediately preceding such calendar year the Railroad 
Retirement Tax Act provides for a maximum amount of monthly compensation 
taxable under such Act during all months of such calendar year equal to 
one-twelfth of maximum wages which Federal Insurance Contributions Act 
provides may be counted for such calendar year, see section 111(e) of 
Pub. L. 89-97, set out as an Effective Date note under section 1395i-1 
of Title 42, The Public Health and Welfare.


                    Effective Date of 1959 Amendment

    Amendment by Pub. L. 86-28 effective, except as otherwise provided, 
first day of calendar month next following May 1959, see section 202 of 
Pub. L. 86-28, set out as a note under section 3201 of this title.


                    Effective Date of 1954 Amendment

    Amendment by act Aug. 31, 1954, effective as if enacted as a part of 
the Internal Revenue Code of 1986 [formerly I.R.C. 1954], see section 
407 of act Aug. 31, 1954, as amended, set out as a note under section 
3201 of this title.


                              Separability

    Section 9 of Pub. L. 91-215 provided that: ``If any provision of 
this Act [amending this section, section 3221 of this title, and 
sections 228c and 228o of Title 45, Railroads, enacting provisions set 
out as notes under section 3221 of this title and sections 228c and 228o 
of Title 45, and amending provisions set out as notes under this 
section] or the application thereof to any person or circumstances is 
held invalid, the remainder of this Act, and the application of such 
provisions to other persons or circumstances, shall not be affected 
thereby.''


 Penalties and Interest Not Assessed for Failure To Make Timely Payment 
 During Period January 1, 1982, to June 30, 1982, of Taxes Attributable 
                     to Amendments by Pub. L. 97-123

    For provision that no penalties or interest shall be assessed on 
account of any failure to make timely payment of taxes imposed by this 
section with respect to payments made for the period Jan. 1, 1982, and 
ending June 30, 1982, to the extent that such taxes are attributable to 
section 3 of Pub. L. 97-123 or the amendments made by that section, see 
section 3(f) of Pub. L. 97-123, set out as a note under section 3101 of 
this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 24, 72, 275, 1402, 3231, 
3502, 6051 of this title; title 45 sections 231, 231e, 231f-1, 231n, 
231n-1.
