Resolution 137
,.-
68B
RESOL!l.TION
n 0 13'1
RESOLUTION PROVIDING FOR THE ADMINISTRATIO:N
OF THE VICTORY TAX.
WHEREAS, the Revenue Act of 1942 imposes a levy of 5% on the
gross income, defined as the victory tax net income, of every in-
dividual, which is required to be collected at the source by em-
ployers;
WHEREAS, municipal employees are subject to the tax and
municipalities are made withholding agents and required to withhold
such tax and to return and pay over the proceeds thereof to the
Federal Government;
WHEREAS, the tax attaches to all wages paid as income after
January 1, 1943, regardless of when they are earned; and,
WHEREAS, deductions, at the option of the employer, may be
computed on the amount actually paid at any payroll period or upon the
basis of wage bracket withholdings set forth in the Act Section 466
(c) (1) for any payroll period. NOW THEREFORE:
The Common Council of the City of Gilroy does hereby resolve as
follows:
That, beginn:i.ng with the first payroll after January 1, 1943, the
City Clerk is hereby authorized and directed to deduct and withhold
from the wages or salary paid to each officer or employee of the
City the Victory Tax in such an amount as is requ:i.red 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 actually paid
at any payroll period) on every payroll.
The City Clerk at the time of making up the payroll or immediately
thereafter, shall transfer the monies deducted therefrom under the pro-
visions of this resolution to the City Treasurer for deposit in a
separate account in the Bank of America N.T. & S.A., Gilroy, California,
where they shall be deposited and designated as a "Victory Tax Account,
held for the benefit of t'::le Collector of Internal Revenue." The
monies accumulated from such withholdings during each quarter of the
calendar year shall be paid by the City Treasurer to the United States
Collector of Internal Revenue for the District in which this city is
located on or before the last day of the month following the close of
any such quarter.
On or before January 31 of each year subsequent to 1943, or when
the last payment of wages is made, if emplOYment is terminated before
the close of the calendar year, the City Clerk shall furnish to each
employee with respect to his emplOYment during the calendar year, a
written s0atement showing the wages for the period covered and the
amount of the tax withheld and paid in respect to such wages. A copy
of tria statement for every employee shall be lncluded wi th the fjnal
return for the calend~r year to the Collect of Internal Revenue. The
aforesaid officer shall keep such records and made such reports to the
Bureau of Internal Revenue of wages paid, and the tax collected and
paid with respect thereto as that Bureau may require and prescribeX.
The taxes to be withheld and collected under this resolution
shall not apply to any taxable year commencing after the date of the
cessation of hostilities i!l the present war and the account established
for the receiv'ng of the tax funds hereunder shall be closed with the
690
last payment to the Federal Government of the funds withheld. The
operation of this resolution shall terminate at that time or sooner, if
the victoF] tax is terminated by Federal action prior to that time.
ADOPTED this 4th day of
by the following vote:
Jannal'Y'
, 1943:
AYES:
Gounc ilmen Ueorge A.Mart1n,Ge crge M.Mason,Nat heiner,
J" .ll. 'Nentworth, David Y. stout.
NOES:
Councilmen None
ABSENT: Counci'lmen James Battersby.
Attest:
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City Clerk
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