A bill relating to the withholding of income or employment taxes imposed by certain cities on the compensation of Federal employees.

Authorizes the Secretary of the Treasury to enter into an agreement, regarding the withholding of city income or employment taxes, within 120 days of a request for agreement by the proper city official.

Forbids Federal agencies from accepting compensation from a city for services of withholding tax. Defines "city" to mean only a city which is incorporated under State law.