PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3773

"(c) termination if loans to railroad unemployment fund
repaid.—The tax imposed by this section shall not apply to rail
wages paid on or after the 1st day of any calendar month if, as of
such 1st day, there is—
"(1) no balance of transfers made before October 1, 1985, to
the railroad unemployment insurance account under section
10(d) of the Railroad Unemployment Insurance Act, and
"(2) no unpaid interest on such transfers.
"SEC. 3322. DEFINITIONS.
"(a) rail employer.—For purposes of this chapter, the term 'rail
employer' means any person who is an employer as defined in
section 1 of the Railroad Unemployment Insurance Act.
"(b) rail wages.—For purposes of this chapter, the term 'rail
wages' means, with respect to any calendar month, so much of the
remuneration paid during such month which is subject to contribu-
tions under section 8(a) of the Railroad Unemployment Insurance
Act.
"(c) employee representative.—For purposes of this chapter, the
term 'employee representative' has the meaning given such term by
section 1 of the Railroad Unemployment Insurance Act.
"(d) certain rules made applicable.—For purposes of this chap-
ter, rules similar to the rules of section 3307 and 3308 shall apply."
(b)	continuation of surtax rate through 1990.—
(1)	in general.—In the case of any calendar month beginning
before January 1,1991—
(A)	there shall be substituted for "4 percent" in subsec-
tions (a) and (b) of section 3321 of the 1986 Code the
percentage equal to the sum of—
(i) 4 percent, plus
(ii) the surtax rate (if any) for such calendar month,
and
(B)	subsection (c) of such section shall not apply to so
much of the tax imposed by such section as is attributable
to the surtax rate.
(2)	surtax rate.—For purposes of paragraph (1), the surtax
rate shall be—
 (A)	3.5 percent for each month during a calendar year if,
as of September 30, of the preceding calendar year, there
was a balance of transfers (or unpaid interest thereon)
made after September 30, 1985, to the railroad unemploy-
ment insurance account under section 10(d) of the Railroad
Unemployment Insurance Act, and
 (B)	zero for any other calendar month.
(c)	technical and conforming amendments.—
 (1)	Subsection (d) of section 6157 of the 1986 Code (relating to
quarterly payment of railroad unemployment repayment tax) is
hereby repealed.
 (2)	Paragraph (2) of section 6201(b) of the 1986 Code (relating
to amount not to be assessed) is amended by striking out "or tax
imposed by section 3321".
 (3)	Section 6317 of the 1986 Code (relating to payments of
Federal unemployment tax for calendar quarter) is amended—

 (A)	by striking out "or tax imposed by section 3321", and
 (B)	by striking out "and 23A, as the case may be,".

26 USC 3321
note.