I
107TH CONGRESS
2D SESSION
H. R. 3923
To promote the economic recovery of the District of Columbia, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 11, 2002
Ms. NORTON introduced the following bill; which was referred to the Com-
mittee on Government Reform, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To promote the economic recovery of the District of
Columbia, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘District of Columbia
Fair Federal Compensation Act of 2002’’.
TITLE I—DEDICATED
INFRASTRUCTURE ACCOUNT
SEC. 101. ESTABLISHMENT OF ACCOUNT.
There is established in the general fund of the Dis-
trict of Columbia an account to be known as the Dedicated
Infrastructure Account (hereafter in this title referred to
as the ‘‘Account’’), which shall consist of the following
amounts:
(1) Amounts deposited pursuant to section 102.
(2) Such other amounts as may be deposited
pursuant to District of Columbia law.
(3) Interest earned on amounts in the account.
SEC. 102. DEPOSIT OF REVENUE OBTAINED UNDER NON-
RESIDENT WAGE TAX.
All amounts obtained by the District of Columbia
which are attributable directly to the imposition and with-
holding of the nonresident wage tax under title II shall
be deposited into the Account.
SEC. 103. USE OF AMOUNTS IN ACCOUNT.
(a) IN GENERAL.—Amounts in the Account may be
used only for the following purposes:
(1) Building and facility maintenance, construc-
tion, and capital improvement projects for District
of Columbia public schools and public charter
schools.
(2) Transportation activities, including the pay-
ment of the local share of participation in public
transportation activities and road construction and
improvement projects.
(3) Information technology improvements for
the District government.
(4) Debt service payments on bonds, notes, and
other obligations of the District government.
(b) AVAILABILITY OF FUNDS.—Funds appropriated
or otherwise made available from the Account shall remain
available until expended.
TITLE 
II—IMPOSITION 
AND
WITHHOLDING 
OF 
NON-
RESIDENT WAGE TAX
SEC. 
201. 
IMPOSITION 
AND 
WITHHOLDING 
OF 
NON-
RESIDENT WAGE TAX.
(a) IMPOSITION OF TAX.—Every nonresident indi-
vidual employed in the District of Columbia is subject to
a tax equal to 2 percent of wages from employment in
the District of Columbia and 2 percent of net earnings
from self-employment in the District of Columbia, so long
as there is a corresponding Federal credit.
(b) EXCEPTION.—Individuals excluded from the defi-
nition of ‘‘resident’’ under the second sentence of section
47–1801.4(17), District of Columbia Code, partners in
partnerships and sole proprietors subject to tax under sec-
tions 47–1808.1 through 47–1808.6, District of Columbia
Code, and members of the military service on active duty
are not subject to the tax imposed in this section.
(c) ASSESSMENT AND COLLECTION OF NON-RESI-
DENT WAGE TAX.—Every employer making payment of
wages and every nonresident partner and sole proprietor
of unincorporated businesses located in the District shall
deduct and withhold the nonresident wage tax imposed by
this section and make returns of tax in accordance with
regulations prescribed by the Mayor of the District of Co-
lumbia.
(d) DEFINITIONS.—
(1) EMPLOYER.—The term ‘‘employer’’ has the
meaning given such term in section 3401(b) of the
Internal Revenue Code of 1986.
(2) EMPLOYMENT IN THE DISTRICT OF COLUM-
BIA AND SELF-EMPLOYMENT IN THE DISTRICT OF
COLUMBIA.—The terms ‘‘employment in the District
of Columbia’’ and ‘‘self-employment in the District
of Columbia’’ shall mean employment or self-employ-
ment involving labor or personal services performed
in the District of Columbia during the taxable year
except that such terms shall not include labor or
personal services performed by a nonresident in the