An Act to amend the Internal Revenue Code of 1954 to exclude from gross income amounts paid by the United States to certain nonresident alien employees or their beneficiaries
PL 86-437 (H.R.135), enacted 04/22/1960

74 S T A T . ] 
PUBLIC LAW 86-438-APR. 22, 1960 
79 
Public Law 86-437 
AN ACT 
April 22, 1960 
To amend the Internal Revenue Code of 1954 to exclude from gross income 
[H. R. 135] 
amounts paid by the United States to certain nonresident alien employees or 
their beneficiaries. 
T a x e s . 
E m p 1 o y 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 402(a) 
of the Internal Revenue Code of 1954 (relating to the taxability of a tnTst'srtaxa'briuy. 
beneficiary of an employees' trust) is amended by adding at the end 
o!'^Tl*r-"*;«o^^; 
^1 
J! J.1 
^ n 
• 
v. 
2^ ^°^ 
402(a). 
thereof the following new paragraph: 
" (4) DISTRIBUTIONS BY UNITED STATES TO NONRESIDENT ALIENS.— 
The amount includible under paragraph (1) or (2) of this sub-
section in the gross income of a nonresident alien individual with 
respect to a distribution made by the United States in respect of 
services performed by an employee of the United States shall not 
exceed an amount which bears the same ratio to the amount in-
cludible in gross income without regard to this paragraph as— 
" (A) the aggregate basic salary paid by the United States 
to such employee for such services, reduced by the amount of 
such basic salary which was not includible in gross income by 
reason of being from sources without the United States, bears 
to 
"(B) the aggregate basic salary paid by the United States 
to such employee for such services. 
In the case of distributions under the Civil Service Retirement 
Act (5 U.S.C. 2251), the term 'basic salary' shall have the mean- 
'^^ ^tat. 743. 
ing provided in section 1(d) of such Act." 
SEC. 2. (a) The first sentence of section 402(a) (1) of the Internal 
Exempt trusts. 
Revenue Code of 1954 (relating to general rule for taxability of bene- *°''^*'^^''y-
ficiary of exempt trust) is amended by striking out "paragraph (2)," 
and inserting in lieu thereof "paragraphs (2) and (4),". 
(b) Subsection (d) of section 871 of such Code (relating to the tax gj?^""'"^^^ es ^ " * 
imposed on nonresident alien individuals) is amended to read as 
esAstar. 278. 
f o l l o w s : 
26 use 871. 
"(d) 
CROSS REFERENCES.— 
"(1) For doubling of tax on citizens of certain foreign countries, 
see section 891. 
"(2) For tax treatment of certain amounts distributed by the 
United States to nonresident alien individuals, see section 402 
(a)(4).'' 
SEC. 3. The amendments made by this Act shall apply only with ^^ff^^^'^^^'^^^^^y 
respect to taxable years beginning after December 31,1959. 
Approved April 22, 1960. 
date. 
Public Law 86-438 
AN ACT 
^p^jj 22, I960 
To provide for the protection and preservation of the Antietam Battlefield 
[H. R. 1805] 
in the State of Maryland. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Secretary 
Antietam Esattie-
of the Interior is authorized to acquire such lands and interests in ^'pres'^^ation. 
land and to enter into such agreements with the owners of land on 
behalf of themselves, their heirs and assigns with i-espect to 
the use thereof as the Secretary finds necessary to preserve, protect 
and improve the Antietam Battlefield comprising approximately 
1,800 acres in the State of Maryland and the property of the 
80 
PUBLIC LAW 86-439-APR. 22, 1960 
[74 
S T A T . 
Report 
gress. 
t o Con-
United States thereon, to assure the public a full and unimpeded 
view thereof, and to provide for the maintenance of the site (other 
than those portions thereof which are occupied by public buildings 
and monuments and the Antietam National Cemetery) in, or its 
restoration to, substantially the condition in which it was at the time 
of the battle of Antietam. Not more than 600 acres of land, however, 
shall be acquired in fee by purchase or condemnation, but neither this 
limitation nor any other provision of law shall preclude such acquisi-
tion of the fee title to other lands and its immediate reconveyance to 
the former owner with such covenants, restrictions, or conditions as 
will accomplish the purposes of this Act: Provided^ That the cost to 
the Government of any such transaction shall not exceed the reason-
able value of the covenants, restrictions, or conditions thereby imposed 
on the property. Any acquisition authorized by this Act may be made 
without regard to the limitation set forth in the proviso contained in 
the Act of May 14, 1940 (54 Stat. 212). The Secretary shall report 
to the Congress at least once each year on any acquisition made or 
agreement entered into under this Act. 
Approved April 22, 1960. 
April 22,1960 
[H. R. 3676] 
Public Law 86-439 
AN ACT 
To direct the Secretary of the Interior to convey certain lands to the city of 
TiHamooli, Oregon. 
Tillamook. Greg, 
Land 
c o n v e y -
ance. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That the Secretary 
of the Interior is directed to convey all the right, title, and interest 
of the United States in and to lot 4, section 25, township 1 south, range 
10 west, Willamette meridian, Oregon, embracing some 1.98 acres, to 
the city of Tillamook, Oregon, upon the payment of the fair market 
value of the land conveyed: Provided, That in the disposition, by sale, 
lease, or otherwise, or any tract of the land conveyed by this Act 
which is occupied or developed for municipal, business, residential, 
or other beneficial purposes on the date of approval of this Act, the 
city of Tillamook shall afford a preference right to the occupant 
thereof on the date of approval of this Act, or his successor in interest. 
Where the tract is occupied by a person other than the owner of the 
improvements thereon, the owner of the improvements shall, for the 
purposes of this subsection, be considered the occupant of the tract. 
SEC. 2. The execution of the conveyance directed by section 1 of 
this Act shall not relieve any occupants of those lands of any liability, 
existing on the date of that conveyance, to the United States for 
unauthorized use of the conveyed lands. 
Approved April 22, 1960. 
April 22, 1960 
[H. R. 6785] 
Public Law 86-440 
AN ACT 
To amend section 4071 of the Internal Revenue Code of 1954 so as to fix a 
tax of 1 cent i)er pound of certain laminated tires produced from used tires. 
Taxes. 
Laminated tires. 
70 Stat. 388. 
26 u s e 4071. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That (a) section 
4071 (a) of the Internal Revenue Code of 1954 (relating to tax on tires 
Mild tubes) is amended—