AMENDMENTS RELATING TO RAILROAD UNEMPLOYMENT REPAYMENT TAX.

SEC. 7106. AMENDMENTS RELATING TO RAILROAD UNEMPLOYMENT REPAYMENT TAX. (a) In General.—Chapter 23A of the 1986 Code (relating to railroad unemployment repayment tax) is amended to read as follows: “CHAPTER 23A. RAILROAD UNEMPLOYMENT REPAYMENT TAX “Sec. 3321. Imposition of tax. “Sec. 3322. Definitions. “SEC. 3321. IMPOSITION OF TAX. “(a) General Rule.—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. “(b) Tax on Employee Representatives.— “(1) In general.—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. “(2) Determination of wages.—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. 102 STAT. 3773 “(c) Termination if Loans to Railroad Unemployment Fund Repaid.—The 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. “SEC. 3322. DEFINITIONS. “(a) Rail Employer.—For purposes of this chapter, the term ‘rail employer’ means any person who is an employer as defined in section 1 of the Railroad Unemployment Insurance Act. “(b) Rail Wages.—For purposes of this chapter, the term ‘rail wages’ means, with respect to any calendar month, so much of the remuneration paid during such month which is subject to contributions under section 8(a) of the Railroad Unemployment Insurance Act. “(c) Employee Representative.—For purposes of this chapter, the term ‘employee representative’ has the meaning given such term by section 1 of the Railroad Unemployment Insurance Act. “(d) Certain Rules Made Applicable.—For purposes of this chapter, rules similar to the rules of section 3307 and 3308 shall apply.” (b) Continuation of Surtax Rate Through 1990.— (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, and (B) zero for any other calendar month. (c) Technical and Conforming Amendments.— (1) Subsection (d) of section 6157 of the 1986 Code (relating to quarterly payment of railroad unemployment repayment tax) is hereby repealed. (2) Paragraph (2) of section 6201(b) of the 1986 Code (relating to amount not to be assessed) is amended by striking out “or tax imposed by section 3321”. (3) Section 6317 of the 1986 Code (relating to payments of Federal unemployment tax for calendar quarter) is amended— (A) by striking out “or tax imposed by section 3321”, and (B) by striking out “and 23A, as the case may be,”. 102 STAT. 3774 (4) Subsection (e) of section 6513 of the 1986 Code (relating to payments of Federal unemployment tax) is amended by striking out the Inst sentence. (5) Subsection (i) of section 6601 of the 1986 Code (relating to exception as to Federal unemployment tax) is amended by striking out “or 3321”. (6) Subparagraph (A) of section 232(a)(2) of the Railroad Retirement Revenue Act of 1983 is amended by striking out “is attributable to the basic rate under section 3321(c)(1)(A) of the Internal Revenue Code of 1954” and inserting in lieu thereof “is not attributable to the surtax rate under section 516(b) of the Railroad Unemployment Insurance and Retirement Improvement Act of 1988”. (7) Subparagraph (B) of section 232(a)(2) of such Act is amended by striking out “section 3321(c)(1)(B) of such Code” and inserting in lieu thereof “section 516(b) of such Act”. (d) Effective Date.—The amendments made by this section, and the provisions of subsection (b), shall apply to remuneration paid after December 31, 1988.