Executive Order 10672—Withholding of District of Columbia Income Taxes by Federal Agencies

By virtue of the authority vested in me by section 8 (k) of Title XII of the District of Columbia Income and Franchise Tax Act of 1947, as added by section 11 of the District of Columbia Revenue Act of 1956, approved March 31, 1956 (70 Stat. 77), and section 301 of title 3 of the United States Code, and as President of the United States, I hereby prescribe the following regulations governing the agreement to be entered into between the Secretary of the Treasury and the Commissioners of the District of Columbia, pursuant to the provisions of the said section 8 (k) of Title XII of the District of Columbia Income and Franchise Tax Act of 1947, with respect to the withholding of District of Columbia income taxes from the compensation of employees of the United States.

1. The said agreement shall be entered into by the Secretary of the Treasury with the Commissioners of the District of Columbia within 120 days of the receipt of a request therefor by the Secretary from the Commissioners: Provided, That such agreement shall be consistent with the provisions of the said District of Columbia Income and Franchise Tax Act of 1947, as amended, and of rules and regulations issued thereunder, and shall be subject to any amendment of any such provisions, including amendments occurring after the effective date of such agreement.

2. Such agreement (a) shall provide that the head of each agency of the United States shall comply with the requirements of the District of Columbia Income and Franchise Tax Act of 1947, as amended, with respect to employees of such agency who are subject to income taxes imposed by such act and whose regular place of employment is within the District of Columbia, (b) shall specify when the withholding of taxes shall commence, and (c) shall provide for procedures for the withholding, the filing of the returns, and the payment of the tax to the District of Columbia which conform, so far as practicable, to the usual fiscal practices of agencies of the United States.

3. Such agreement shall not apply with respect to compensation for service as a member of the armed forces of the United States, or with respect to compensation of an employee who does not have a place of abode, or does not reside or is not domiciled, within the District of Columbia at the time tax is required to be withheld, and shall not require collection by agencies of the United States of delinquent tax liabilities of federal employees.

4. Nothing in this order, or in the rules or regulations issued thereunder, or in the agreement entered into pursuant thereto, shall be construed as giving consent to the application of any provision of law which has the effect of imposing more burdensome requirements upon the United States than it imposes upon other employers, or which has the effect of subjecting the United States or any of its officers or employees to any penalty or liability.

5. The head of each agency shall designate, or provide for the designation of, the officers or employees whose duty it shall be to withhold taxes, file required returns, and direct payment of such taxes withheld, in accordance with the terms of the agreement entered into between the Secretary of the Treasury and the Commissioners of the District of Columbia.

6. As used in this order—

(a) The term "agency" includes each department, commission, authority, administration, board, or other independent establishment of the Government of the United States, including any wholly-owned instrumentality of the United States, and each unit of the legislative branch of the United States, but such term does not include governments of the possessions or units of the judicial branch of the United States.

(b) The term "armed forces of the United States" includes all regular and reserve components of the Army, the Navy, the Air Force, the Marine Corps, and the Coast Guard.

(c) The term "employees" as applied to employees of the United States includes officers and other individuals appointed by a federal officer and engaged in the performance of federal functions in an agency as defined in paragraph (a) above, under authority of an act of Congress or an Executive order, who in the performance of their duties are supervised and directed by a federal officer, but the term does not include retired personnel, pensioners, annuitants, or similar beneficiaries of the Federal Government, whether their status is civilian or in the armed forces of the United States, who are not performing active service, or persons receiving remuneration for services on a contract-fee basis. The term shall include an officer of a corporation, but shall not include any elective officer of the Government of the United States or any officer or employee in the legislative branch of the Government of the United States whose compensation is paid by the Secretary of the Senate or the Clerk of the House of Representatives, or any officer of the executive branch of the Government whose appointment to the office held by him was by the President of the United States and subject to confirmation by the Senate of the United States and whose tenure of office is at the pleasure of the President of the United States, unless such officer of the executive branch is domiciled within the District of Columbia on the last day of the taxable year.

(d) The term "regular place of federal employment" means the place where an employee actually performs his services, irrespective of his residence, except when such services are performed in a travel or temporary-duty status, in which case the "regular place of federal employment" means the place to which the employee will normally be expected to proceed for the purpose of performing further services in connection with his federal employment on the termination of travel or temporary-duty status.

I hereby delegate to the Secretary of the Treasury authority to prescribe such rules and regulations not inconsistent herewith as may be necessary to further effectuate the provisions of section 8 (k) of Title XII of the District of Columbia Income and Franchise Tax Act of 1947, as amended, or of this order.

DWIGHT D. EISENHOWER

THE WHITE HOUSE,

July 9, 1956.