Taxes

  1. Law
  2. USC 46
  3. Shipping
  4. Vessels and Seamen
  5. Merchant Seamen Protection and Relief
  6. PROTECTION AND RELIEF
  7. Taxes

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§11108. Taxes

(a) Withholding.-Wages due or accruing to a master or seaman on a vessel in the foreign, coastwise, intercoastal, interstate, or noncontiguous trade or an individual employed on a fishing vessel or any fish processing vessel may not be withheld under the tax laws of a State or a political subdivision of a State. However, this section does not prohibit withholding wages of a seaman on a vessel in the coastwise trade between ports in the same State if the withholding is under a voluntary agreement between the seaman and the employer of the seaman.

(b) Liability.-

(1) Limitation on jurisdiction to tax.-An individual to whom this subsection applies is not subject to the income tax laws of a State or political subdivision of a State, other than the State and political subdivision in which the individual resides, with respect to compensation for the performance of duties described in paragraph (2).

(2) Application.-This subsection applies to an individual-

(A) engaged on a vessel to perform assigned duties in more than one State as a pilot licensed under section 7101 of this title or licensed or authorized under the laws of a State; or

(B) who performs regularly assigned duties while engaged as a master, officer, or crewman on a vessel operating on navigable waters in 2 or more States.

( Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 580 ; Pub. L. 98–364, title IV, §402(14), July 17, 1984, 98 Stat. 450 ; Pub. L. 106–489, §1, Nov. 9, 2000, 114 Stat. 2207 ; Pub. L. 111–281, title IX, §906, Oct. 15, 2010, 124 Stat. 3012 .)

Historical and Revision Notes
Revised sectionSource section (U.S. Code)
11108 46:601

Section 11108 prohibits the mandatory withholding of state or local taxes from crewmembers on certain specified vessels. It permits, however, voluntary withholding agreements.

Amendments

2010-Subsec. (b)(2)(B). Pub. L. 111–281 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "who performs regularly-assigned duties while engaged as a master, officer, or crewman on a vessel operating on the navigable waters of more than one State."

2000-Pub. L. 106–489 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

1984-Pub. L. 98–364 substituted "an individual employed on a fishing vessel or any fish processing vessel" for "a fisherman employed on a fishing vessel".


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