An Act to amend the Interstate Commerce Act and the Federal Aviation Act of 1958 in order to exempt certain wages and salary of employees from withholding for tax purposes under the laws of States or subdivisions thereof other than the State or subdivision of the employee's residence
PL 91-569 (H.R.10634), enacted 12/23/1970

84 STAT. ] 
PUBLIC LAW 91.569-DEC. 23, 1970 
1499 
trust fund, the term 'bank' has the same meaning as in the Investment 
Company Act of 1940." 
ft,%^n-J<^^' 
(b) Section 3 (a) of the Securities Exchange Act of 1934 (15 U.S.C. 
'^ 
^ 
" 
78c) (relating to exempted securities) is amended by inserting after 
^'"*' PP- ''^^•' 
"any municipal corporate instrumentality of one or more States;" in ^'^^^' 
paragraph (12) the following: "or any security which is an industrial 
development bond (as defined in section 103(c)(2) of the Internal 
Revenue Code of 1954) the interest on which is excludable from gross 1349^'^** ^^^' 
income under section 103(a) (1) of such Code if, by reason of the appli- 
26 use 103. 
cation of paragraph (4) or (6) of section 103(c) of such Code (deter-
mined as if paragraphs (4) (A), (5), and (7) were not included in 
such section 103(c)), paragraph (1) of such section 103(c) does not 
apply to such security;". 
(c) Section 304(a) of the Trust Indenture Act of 1939 (15 U.S.C 
77ddd) (relating to exempted securities) is amended bv reclassifying 
the present text of paragraph (4) thereof as paragraph (4) (A), and 
by adding a new subparagraph (B) at the end of such paragraph (4), 
to read as follows: 
"(B) any security exempted from the provisions of the Securities 
Act of 1933, as amended, by paragraph (2) of subsection 3(a) thereof, 
as amended by section 401 of the Employment Security Amendments 
o f 1970." 
^ " ' O ' P- 718. 
(d) The amendments made by this section shall apply with respect 
to securities sold after January 1,1970. 
Approved December 22, 1970. 
Public Law 91-568 
AN ACT 
December 22, 1970 
To amend the peanut marketing quota provisions to make permanent certain 
[H. R. 17582] 
provisions thereunder. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled. That section 358a 
Peanut acreage 
of the Agricultural Adjustment Act of 1938, as amended, is further ^ 8T'stTt?658; 
amended as follows: 
33 stat. 213. 
S3 Stat. 1153. 
Ante, p. 1498. 
Effective date 
7 use 1358a. 
(1) Subsection (a) thereof is amended by deleting", 1969, and 1970" 
and inserting in lieu thereof "and succeeding". 
Approved December 22, 1970. 
Public Law 91-569 
AN A C T 
December 23, 1970 
To amend the Interstate Commerce Act and the Federal Aviation Act of 1958 
[H.R. 10634] 
in order to exempt certain compensation of employees from withholding for 
income tax purposes under the laws of States or subdivisions thereof other 
than the State or subdivision of residence or the State or subdivision wherein 
more than 50 per centum of compensation is earned, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress aHsembled^ That part I of the 
interstate trans-
Interstate Commerce Act is amended by redesignating section 26 ees.^ °" ^'"^ °^' 
as section 27 and by inserting before such section a new section as 
state income tax 
fnllr>w«- 
withholding, cer.. 
iwinj-wD. 
tain wage exemp-
tions. 
54 Stat. 919. 
49 use 27. 
1500 
PUBLIC LA\^ 91-569-DEC. 23, 1970 
[84 STAT. 
" E X E M P T I O N 
O F 
C E R T A I N 
C O M P E N S A T I O N 
O F 
E M P L O Y E E S 
F R O M 
W I T H -
H O L D I N G 
FOR 
I N C O M E 
TAX 
PURPOSES FOR OTHER THAN 
STATE OR 
SUBDIVISION OF RESIDENCE OR STATE OR SUBDIVISION WHEREIN MORE 
THAN FIFTY PER CENTUM OF COMPENSATION IS EARNED 
"SEC. 26. (a) No part of the compensation p)aid by any railroad, 
express company, or sleeping car company, subject to the provisions 
of this part, to an employee (1) who performs his regularly assigned 
duties as such an employee on a locomotive, car, or other track-borne 
vehicle in more than one State, or (2) who is engaged principally 
in maintaining roadways, signals, communications, and structures or 
in operating motortrucks out of railroad terminals in more than one 
State, shall be withheld for income tax purposes pursuant to the 
laws of any State or subdivision thereof other than the State or 
subdivision wherein more than 50 per centum of the compensation 
paid by the carrier to such employee is earned: Provided^ however^ 
That if the employee did not earn more than 50 per centum of his 
compensation from said carrier in any one State or any subdivision 
thereof during the preceding calendar year, then withholding shall 
be required only for the State or subdivision of the employee's 
residence, as shown on the employment records of any such carrier; 
nor shall any such carrier file any information return or other report 
for income tax purposes with respect to such compensation with any 
State or subdivision thereof other than such State or subdivision 
of residence and the State or subdivision for which the withholding 
of such tax has been required under this subsection. 
"(b) (1) For the purposes of subsection (a) (1), an employee shall 
be deemed to have earned more than 50 per centum of his compen-
sation in any State or subdivision thereof in which the mileage traveled 
by him in such State or subdivision is more than 50 per centum of 
the total mileage traveled by him in the calendar year while so 
employed. 
"(2) For the purposes of subsection (a)(2), an employee shall 
be deemed to have earned more than 50 per centum of his compensation 
in any State or subdivision thereof in which the time worked by 
him in such State or subdivision is more than 50 per centum of the 
total timie worked by him in the calendar year while so employed. 
"State." 
"(c) For the purposes of this section the term 'State' also means the 
««compensation."District of Columbia; and the term 'compensation' shall mean all 
moneys received for services rendered by an employee, as defined 
in subsection (a) in the performance of his duties and shall include 
wages and salary." 
54*stau 920?' 
SEC. 2. (a) Sectlou 202(b) of^ the Interstate Commerce Act is 
79 Stat! 648'. 
amended by inserting after "Nothing in this part" a comma and the 
49 use 302. 
following: "except as provided in section 226A,". 
Tg'^usc 301. 
(b) Part I I of the Interstate Commerce Act is amended by insert-
ing after section 226 a new section as follows: 
" E X E M P T I O N O F C E R T A I N C O M P E N S A T I O N O F E M P L O Y E E S F R O M WITHHOLD-
ING FOR I N C O M E TAX PURPOSES FOR OTHER THAN STATE OR SUBDIVISION 
OF RESIDENCE OR STATE OR SUBDIVISION WHEREIN MORE THAN FIFTY 
PER CENTUM OF COMPENSATION IS EARNED 
"SEC. 226A. (a) No part of the compensation paid by any motor car-
rier subject to the provisions of this part, or by any private carrier of 
property by motor vehicle, to any employee who performs his regularly 
assigned duties as such an employee on a motor vehicle in more than one 
State, shall be withheld for income tax purposes pursuant to the laws 
84 STAT. ] 
PUBLIC LAW 91-569-DEC. 23, 1970 
' 
1501 
of any State or subdivision thereof other than the State or subdivision 
wherein more than 50 per centum of the compensation paid by the 
carrier to such employee is earned: Provided^ however^ That if the 
employee did not earn more than 50 per centum of his compensation 
from said carrier in any one State or any subdivision thereof during 
the preceding calendar year, then withholding shall be required only 
for the State or subdivision of the employee's residence, as shown on 
the employment records of any such carrier; nor shall such carrier file 
any information return or other report for income tax purposes with 
respect to such compensation with any State or subdivision thereof 
other than such State or subdivision of residence, and the State or 
subdivision for which the withliolding of such tax has been required 
under this subsection. 
"(b) For the purposes of subsection (a), an employee shall be 
deemed to have earned more than 50 per centum of his compensation 
in any State or subdivision in which the mileage traveled by him in 
such State or subdivision is more than 50 per centum of the total 
mileage traveled by him in the calendar year while so employed. 
"(c) For the purpose of this section the term 'State' also means any 
"state." 
possession of the United States or the Commonwealth of Puerto Rico; 
and the term 'compensation' shall mean all moneys received for serv- 
"compensa-
ices rendered by an employee, as defined in subsection (a) in the per- 
''°" " 
formance of his duties and shall include wages and salary." 
SEC. 3. (a) Part I I I of the Interstate Commerce Act is amended by 
^4 stat. 929; 
redesignating section 324 as section 325 and by inserting before such ^^49'usc 90^1. 
section a new section as follows: 
" E X E M P T I O N 
o r 
C E R T A I N 
C O M P E N S A T I O N 
O F E M P L O Y E E S 
F R O M 
REPORT-
I N G FOR I N C O M E TAX PURPOSES FOR OTHER THAN STATE OR SUBDIVISION 
OF RESIDENCE OR STATE OR SUBDIVISION WHEREIN MORE THAN FIFTY PER 
CENTUM OF COMPENSATION IS EARNED 
" S E C 324. (a) No water carrier subject to the provisions of this part 
nor any water carrier or class of water carriers operating on inland 
or coastal waters under an exemption provided therein shall file any 
information return or other report for income tax purposes with 
respect to the compensation paid to any employee who performs his 
regularly assigned duties as an employee of such carrier in more than 
one State with any State or subdivision thereof other than the State 
or subdivision of such employee's residence, as shown on the employ-
ment records of such carrier, and the State or subdivision in which 
such employee earned more than 50 per centum of the compensation 
paid him by such carrier during the preceding calendar year. The pro-
visions of this section shall also apply with respect to the compensa-
tion paid to any master, officer, or seaman who is a member of the 
crew on a vessel engaged in foreign, coastwise, intercoastal or non-
contiguous trade or in the fisheries of the United States. 
"(b) For the purposes of subsection (a), an employee shall be 
deemed to have earned more than 50 per centum of his compensation 
in any State or subdivision in which the time worked by him in such 
State or subdivision is more than 50 per centum of the total time 
worked by him in the calendar year while so employed. 
"(c) For the purpose of this section the term 'compensation' shall tion^°"''^"^^' 
mean all moneys received for services rendered by an employee, as 
defined in subsection (a) in the performance of his duties and shall 
include wages and salary." 
(b) The table of contents contained in section 301 of the Interstate 
Commerce Act is amended by striking out 
1502 
PUBLIC LAW 91-569-DEC. 23, 1970 
[84 STAT. 
72 Stat. 797; 
75 Stat. 467. 
49 u s e 1501. 
"Sec. 324. Separability of provisions." 
and inserting in lieu thereof: 
"Sec. 324. Exemption of certain compensation of employees from reporting for 
income tax purposes for other than State or subdivision of resi-
dence and State or subdivision wherein more than 50 per centum of 
compensation is earned. 
"Sec. 325. Separability of provisions." 
SEC. 4. (a) Title XI of the Federal Aviation Act of 1958 is amended 
by inserting after section 1111 the following new section: 
" S t a t e . " 
"Compensa-
tion.»» 
Effective date. 
Separability, 
EXEMPTION OF CERTAIN COMPENSATION OF EMPLOYEES FROM WITHHOLD-
ING 
FOR 
INCOME 
TAX 
PURPOSES 
FOR 
OTHER 
T H A N 
STATE 
OR 
SUB-
DIVISION OF RESIDENCE OR STATE OR SUBDIVISION WHEREIN MORE T H A N 
FIFTY PER CENTUM OF COMPENSATION IS EARNED 
"SEC. 1112.(a) No part of the compensation paid by any air carrier 
to an employee who performs his regularly assigned duties as such an 
employee on an aircraft in more than one State shall be withheld for 
income tax purposes pursuant to the laws of any State or subdivision 
thereof other than the State or subdivision wherein more than 50 per 
centum of the compensation paid by the carrier to such employee is 
earned: Provided^ however^ That if the employee did not earn more 
than 50 per centum of his compensation from said carrier in any one 
State or subdivision thereof during the preceding calendar year, then 
withholding shall be required only for the State or subdivision of 
the employee's residence, as shown on the employment records of any 
such carrier; nor shall such carrier file any information return or other 
report for income tax purposes with respect to such compensation with 
any State or subdivision thereof other than such State or subdivision 
of residence and the State or subdivision for which the withholding of 
such tax has been required under this subsection. 
"(b) For the purposes of subsection (a), an employee shall be 
deemed to have earned 50 per centum of his compensation in any State 
or subdivision in which his scheduled flight time in such State or sub-
division is more than 50 per centum of his total scheduled flight time 
in the calendar year while so employed. 
"(c) For the purposes of this section the term 'State' also means the 
District of Columbia and any of the possessions of the United States; 
and the term 'compensation' shall mean all moneys received for services 
rendered by an employee, as defined in subsection (a) in the perform-
ance of his duties and shall include wages and salary." 
(b) That portion of the table of contents contained in the first section 
of the Federal Aviation Act of 1958 which appears under the heading 
"Title XI—Miscellaneous" is amended by adding at the end thereof 
the following: 
"Sec. 1112. Exemption of certain compensation of employees from withholding for 
income tax purposes for other than State or subdivision of residence 
and State or subdivision wherein more than 50 per centum of com-
pensation is earned." 
SEC. 5. The amendments made by this Act shall become effective on 
the first day of the first calendar year beginning after the date of enact-
ment of this Act. 
SEC. 6. If any provision of this Act or the application thereof to any 
person or circumstance is held invalid, the remainder of this Act and 
the application of the provision to other persons or other circumstances 
shall not be affected thereby. 
Approved December 23, 1970.