74 S T A T. ]
PUBLIC LAW 8 6 - 7 7 8 ~ S E P T. 13, 1960
981
"(ii) in the case of any succeeding taxable year beginning with a consecutive January 1 as of the beginning of which there is a balance of such advances, by an additional 10 percent, for each such succeeding taxable year, of the tax imposed by section 3301 with respect to the wages paid by ^"*°' P- ^^°such taxpayer during such taxable year which are attributable to such State; " (B) in the case of a taxable year beginning w ith the third or fourth consecutive January 1 as of the beginning of which there is a balance of such advances, by the amount determined by multiplying the wages paid by such taxpayer during such taxable year which are attributable to such State by the percentage (if any) by which— "(i) 2.7 percent, exceeds "(ii) the average employer contribution rate for such State for the calendar year preceding such taxable year; and " (C) in the case of a taxable year beginning with the fifth or any succeeding consecutive January 1 as of the beginning of which there is a balance of such advances, by the amount determined by multiplying the wages paid by such taxpayer during such taxable year which are attributable to such State by the percentage (if any) by which— " (i) the 5-year benefit cost rate applicable to such State for such taxable year or (if higher) 2.7 percent, exceeds "(ii) the average employer contribution rate for such State for the calendar year preceding such taxable year. " (d) DEFINITIONS AND SPECIAL RULES RELATING TO SUBSECTION
(c). "(1) RATE OF TAX DEEMED TO BE 3 PERCENT.—In applying subsection (c), the tax imposed by section 3301 shall be computed at the rate of 3 percent in lieu of 3.1 percent. "(2) WAGES ATTRIBUTABLE TO A PARTICULAR STATE.—For purposes of subsection (c), wages shall be attributable to a particular State if they are subject to the unemployment compensation law of the State, or (if not subject to the unemployment compensation law of any State) if they are determined (under rules or regulations prescribed by the Secretary or his delegate) to be attributable to such State. " (3) ADDITIONAL TAXES INAPPLICABLE WHERE ADVANCES ARE REPAID BEFORE NOVEMBER 10 OF TAXABLE YEAR.—Paragraph (2) or
(3) of subsection (c) shall not apply with respect to any State for the taxable year if (as of the beginning of November 10 of such year) there is no balance of advances referred to in such paragraph. " (4) AVERAGE EMPLOYER CONTRIBUTION RATE.—For purposes of
subparagraphs (B) and (C) of subsection (c)(3), the average employer contribution rate for any State for any calendar year is that percentage obtained by dividing— " (A) the total of the contributions paid into the State unemployment fund with respect to such calendar year, by " (B) the total of the remuneration subj ect to contributions under the State unemployment compensation law with respect to such calendar year. For purposes of subparagraph (C) of subsection (c)(3), if the average employer contribution rate for any State for any calendar year (determined without regard to this sentence) equals or exceeds 2.7 percent, such rate shall be determined by increas-
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