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HomeMy WebLinkAboutOrdinance - 689-1942 - Collection Of Victory Tax From Wages And Salaries Paid City Employees. - 01/14/1942,. f "-} ·---.... Ol-lli---t9l¥3 ORDINANCE NO. _6_8_9 __ _ AN ORDINANCE · PROVIDING FOR THE COLLECTION OF VICTORY TAX FROM WAGES AND SALARIES PAID CITY EMPLOYEES AS PRO- VIDED BY THE HEVENUE ACT PASSED BY THE NATIONAL CONGRESS IN 1942; PROVIDING FOR OPENING A SPECIAL ACCOUNT DESIGI~ATED AS " VICTORY TAX ACCOUNT HELD FOR THE BENEFIT OF THE COLLECTOR OF INTERNAL REVENUEtt PROVIDING FOR THE PAYMENT OF SAME TO THE COLLECTOR OF INTERNAL REVENUE AND REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE AND DECLARING AN EMERGENCY. WHEREAS, the Revenue Act of 1942 imposes a levy of 5% on all salaries and wages of each individual which tax is designated as a "Victozcy Taxtt and is required by law to be collected at its source by the employer; and, WHEREAS, city employees are subject · to the tax and cities are required to withhold such tax and to render and pay over the proceeds thereof to the Federal Government; and WHEREAS, the tax attaches to all salaries and wages paid to city employees on or after January 1st, 1943, regardless of when they were earned; and, WHEREAS, deductions at the offices of the employer, may be computed on the amount actually paid as salaries and wages at any payroll period or upon a basis of wage bracket withholding as set forth in Section 466 (c) (1) of the act for any payroll period. NOW, THEREFORE, BE IT RESOLVED BY THE CITY CO~ll~ISSION OF THE CIT~ OF LUBBOCK: SECTION 1: That beginning with the first payroll on or after January 1st, 1943, the City of Lubbock is hereby authorized and directed to deduct and withhold from the wages and salaries paid to each officer and employee of the City of Lubbock the Victory Tax in such amount as is required by the Revenue Act of 1942, based on the wage bracket withholding authorized under Section 466 (c) (1) of that act, or 5% of the amount thereof less the allowed credit at the rate·of $624.00 per year on every payroll. SECTION 2: The City of Lubbock at the time of making up the payroll or immediately thereafter, shall transfer the moneys deducted therefrom under the provisions of this Ordinance to a separate account in the Citizens National Bank of Lubbock, Texas, where it shall be deposited and designated as 11 Victory Tax Account, Held for the benefit of the Collector of Internal Revenue". The moneys accumulated from such wlthheld during each quarter of the calendar year, shall be paid by the City of Lubbock to the United States Collector of Internal Revenue for the District in which the City of Lubbock is located on or before the f-irst day of the month followin g the close of any such quarter. SECTION 3: During the month of January, 1944, and during each January th~reafter, or when the last payment of wages is made, if employment is terminated before the close of the calendar year, the City of Lubbock shall furnish to each employee with respect to his employment during the calendar year a written statement showing the wages for the period covered and the amount of tax withheld and paid in respect to such wages or salary. A copy of this statement for each employee shall be included with the final return for the preceding calendar year to the Collector of Internal Revenue. The City of Lubbock shall keep such records and make such reports to the Bureau of Internal Revenue of wages and salaries paid and taxes collected and paid with respect .thereto as the bureau may require and prescribe. SECTION 4: The tax to be withheld and collected under this Ordinance shall not apply to any taxable year commencing after the date of cessation of hostilities in the present war and the account established for the receiving of tax funds hereunder shall be closed with the last payment to the Federal Government of the funds withheld. The operation of this Ordinance shall terminate at that time or sooner if the Victory Tax is terminated for any reason prior to that time. 2 , ' SECTION 5: The provisions of all Ordinances or parts thereof now in effect relating to payroll procedure of the City of Lubbock inconsistent herewith or with the prov~sions of the Revenue Act of 1942 relating to the "Victory Tax" are to that extent modified. SECTION 6: This Ordinance is hereby declared to be an emergency measure made necessary for the preservation of the public peace and safety and to meet the requirements National of th~foevenue Act of 1942, and the provisions of the City Charter requiring the reading of an ordinance at two separate meetings before it takes effect are hereby waived and this Ordinance shall take effect immediately and IT IS SO ORDERED. PASSED AND APPROVED this the ~ day of January A. D. 1943. Mayor ATTEST: ~k~~"< City Secretary 3 . !