---
kind: "section"
citation: "26 U.S.C. § 4906"
title: "26"
title_heading: "Internal Revenue Code"
number: "4906"
heading: "Application of State laws"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/4906"
units:
  - "Subtitle D — Miscellaneous Excise Taxes"
  - "Chapter 40 — General Provisions Relating to Occupational Taxes"
---

# §4906. Application of State laws


The payment of any special tax imposed by this subtitle for carrying on any trade or business shall not be held to exempt any [person](/usc/26/4377.md?p=b-1-A) from any penalty or punishment provided by the laws of any [State](/usc/26/4482.md?p=c-1) for carrying on the same within such [State](/usc/26/4482.md?p=c-1), or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such [State](/usc/26/4482.md?p=c-1) or in places prohibited by municipal law; nor shall the payment of any such tax be held to prohibit any [State](/usc/26/4482.md?p=c-1) from placing a duty or tax on the same trade or business, for [State](/usc/26/4482.md?p=c-1) or other purposes.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 594.)