
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC5517]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                      Subpart D--Pay and Allowances
 
                     CHAPTER 55--PAY ADMINISTRATION
 
                     SUBCHAPTER II--WITHHOLDING PAY
 
Sec. 5517. Withholding State income taxes

    (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;

the Secretary of the Treasury, under regulations prescribed by the 
President, shall enter into an agreement with the State within 120 days 
of a request for agreement from the proper State official. The agreement 
shall provide that the head of each agency of the United States shall 
comply with the requirements of the State withholding statute in the 
case of employees of the agency who are subject to the tax and whose 
regular place of Federal employment is within the State with which the 
agreement is made. 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''.
    (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 sections 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.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 478; Pub. L. 94-455, title XII, 
Sec. 1207(a)(1), (b), (c), Oct. 4, 1976, 90 Stat. 1704, 1705; Pub. L. 
100-180, div. A, title V, Sec. 505(1), Dec. 4, 1987, 101 Stat. 1086; 
Pub. L. 103-337, div. A, title XVI, Sec. 1677(a)(1), Oct. 5, 1994, 108 
Stat. 3019; Pub. L. 105-34, title XIV, Sec. 1462(a), Aug. 5, 1997, 111 
Stat. 1057.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 84b.                 July 17, 1952, ch.
                                                    940, Sec.  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, Sec.  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.


                               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, Sec. 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, Sec. 1207(b), added subsec. (d).


                    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 Amendment

    Amendment 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 Amendment

    Amendment 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.
    Section 1207(f)(2) of Pub. L. 94-455 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 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.

                  Section Referred to in Other Sections

    This section is referred to in section 5520 of this title.
