2014 US Code
Title 46 - Shipping (Sections 101 - 80509)
Subtitle II - Vessels and Seamen (Sections 2101 - 14702)
Part G - Merchant Seamen Protection and Relief (Sections 10101 - 11507)
Chapter 111 - Protection and Relief (Sections 11101 - 11113)
Sec. 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.)

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

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".