Title 3

📘 PUBLIC LAW 113-02 – Exemption from Tax on Corporations, Certain Trusts, etc.

• Purpose: Establishes criteria for tax-exempt status under the Revenue Code.

• Scope:

  • Applies to corporations, community chests, funds, and foundations organized for charitable, religious, scientific, or educational purposes.

  • Aligns with principles found in IRC Section 501, which outlines exemptions for entities not engaged in profit-making or political activities.

• Key Conditions:

• No earnings may benefit private individuals.

• Activities must not substantially involve lobbying or political campaigning.

📑 PUBLIC LAW 113-03 – Revenue Code: Liens

• Purpose: Defines the legal framework for tax liens imposed by the state.

• Scope:

  • All taxes, fines, and penalties owed to the state are secured by a lien on the taxpayer’s property.

  • Includes procedures for filing, releasing, and enforcing liens.

• Notable Provisions:

• Liens attach to all property subject to execution.

• County clerks must maintain a “State Tax Liens” record book.

• Releases require full payment or approval from the comptroller.

💼 PUBLIC LAW 113-04 – U.S.A.R. Revenue Code: Wage Tax Laws

• Purpose: Governs the taxation of wages under national revenue law.

• Scope:

  • Covers wage-based income taxation, employer withholding obligations, and compliance enforcement.

  • May align with provisions in the Internal Revenue Code related to payroll and employment taxes.

• Enforcement:

• Employers are responsible for accurate withholding and reporting.

• Noncompliance may result in penalties or liens under Public Law 113-03.