Reading Room Document

Status of the Pacific Northwest River Basin Commission Under the Federal Unemployment Tax Act

This document discusses the status of the Pacific Northwest River Basin Commission (PNWRBC) under the Federal Unemployment Tax Act (FUTA). The State of Washington contends that the PNWRBC is a taxable local governmental unit under State law, while the Water Resources Council argues that the PNWRBC is a “wholly or partially owned” Federal instrumentality exempt from State unemployment taxes. The conclusion reached in the document is that the PNWRBC is exempted from the State of Washington’s unemployment tax, based on the ruling from the Department of Labor that the PNWRBC is covered by the Unemployment Compensation for Federal Employees Program. The questions presented for review include whether the PNWRBC employees are eligible for unemployment compensation under the UCFE program and whether the PNWRBC is exempted from State taxation under the FUTA provision.

August 9, 1978