---
kind: "section"
citation: "49 U.S.C. § 11502"
title: "49"
title_heading: "Transportation"
number: "11502"
heading: "Withholding State and local income tax by rail carriers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/11502"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part A — Rail"
  - "Chapter 115 — Federal-State Relations"
---

# §11502. Withholding State and local income tax by rail carriers

- (a) No part of the compensation paid by a [rail carrier](/usc/49/10102.md?p=5) providing [transportation](/usc/49/10102.md?p=9) subject to the jurisdiction of the [Board](/usc/49/10102.md?p=1) under this part to an employee who performs regularly assigned duties as such an employee on a [railroad](/usc/49/10102.md?p=6) in more than one [State](/usc/49/10102.md?p=8) shall be subject to the income tax laws of any [State](/usc/49/10102.md?p=8) or subdivision of that [State](/usc/49/10102.md?p=8), other than the [State](/usc/49/10102.md?p=8) or subdivision thereof of the employee’s residence.
- (b) A [rail carrier](/usc/49/10102.md?p=5) withholding pay from an employee under [subsection (a)](#a) of this section shall file income tax information returns and other reports only with the [State](/usc/49/10102.md?p=8) and subdivision of residence of the employee.

## Source credit

(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 844.)

## Notes

### Editorial Notes

### Prior Provisions

Provisions similar to those in this section were contained in section 11504 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Prior sections 11502 to 11507 were omitted in the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Section 11502, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1445, related to conferences and joint hearings with State authorities.

Section 11503, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1445, related to tax discrimination against rail transportation property. See section 11501 of this title.

Section 11503a, added Pub. L. 96–296, § 31(a)(1), July 1, 1980, 94 Stat. 823; amended Pub. L. 97–261, § 20, Sept. 20, 1982, 96 Stat. 1122, related to tax discrimination against motor carrier transportation property. See section 14502 of this title.

Section 11504, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1446; Pub. L. 97–261, § 29(d), Sept. 20, 1982, 96 Stat. 1128; Pub. L. 101–322, § 7, July 6, 1990, 104 Stat. 296; Pub. L. 103–272, § 5(m)(33), July 5, 1994, 108 Stat. 1378, related to withholding State and local income tax by certain carriers. See sections 11502 and 14503 of this title.

Section 11505, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1448; Pub. L. 99–521, § 11(b), Oct. 22, 1986, 100 Stat. 2998, related to State action to enjoin rail carriers from certain actions.

Section 11506, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1448; Pub. L. 102–240, title IV, § 4005, Dec. 18, 1991, 105 Stat. 2146, related to registration of motor carriers by a State.

Section 11507, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1449; Pub. L. 98–473, title II, § 233, Oct. 12, 1984, 98 Stat. 2031, related to prison-made property governed by State law.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.