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[House Report 115-245]
[From the U.S. Government Publishing Office]

115th Congress     }                                    {     Report
                        HOUSE OF REPRESENTATIVES
 1st Session       }                                    {     115-245
======================================================================

 
                     MILITARY RESIDENCY CHOICE ACT

                                _______
                                

 July 24, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Roe of Tennessee, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 282]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 282) to amend the Servicemembers Civil Relief 
Act to authorize spouses of servicemembers to elect to use the 
same residences as the servicemembers, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       		CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     4
Subcommittee Consideration.......................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Statement of General Performance Goals and Objectives............     5
Earmarks and Tax and Tariff Benefits.............................     5
Committee Cost Estimate..........................................     5
Budget Authority and Congressional Budget Office Estimate........     5
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     6
Statement on Duplication of Federal Programs.....................     6
Disclosure of Directed Rulemaking................................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill as Reported.............     7

                          Purpose and Summary

    H.R. 282, the ``Military Residency Choice Act,'' was 
introduced by Representative Elise Stefanik of New York on 
January 4, 2017. H.R. 282 would amend the Servicemember Civil 
Relief Act (SCRA) to allow a servicemember's spouse to claim 
the same state of residency as the servicemember for voting and 
tax purposes regardless of whether the spouse has lived in that 
state.

                  Background and Need for Legislation

Section 2. Residence of spouses of servicemembers for tax purposes

    Since the codification of the SCRA in title 50, United 
States Code (U.S.C.) in 1942, Congress has recognized that 
active duty servicemembers should be afforded certain legal 
protections during periods of military service. Among other 
provisions, the SCRA allows servicemembers to maintain their 
place of residency in a State for certain purposes, such as 
voting and State and local income taxes, regardless of whether 
the servicemember is currently residing in that State or is 
absent from that State due to active duty military service. 
These protections are in place due to the transient nature of 
military service and they allow servicemembers to avoid the 
burdens of reestablishing a place of residence for tax purposes 
after each permanent change of duty station.
    In November of 2009, Congress passed the Military Spouse 
Civil Relief Act (Public Law (P.L.) 111-970, which amended the 
SCRA to extend these same protections to certain spouses of 
servicemembers. The law only applies to spouses of 
servicemembers who actually lived in the same State in which 
the servicemember established residency prior to a permanent 
change of duty station. Therefore, under current law, spouses 
who marry a servicemember, after the servicemember has already 
been transferred from the State where they established their 
residency, cannot claim that same State as their place of 
residence. This leaves that spouse having to legally change his 
or her State of residency for State and local income tax 
purposes after each move, whereas the servicemember and other 
spouses do not have to. Mr. Gabriel Stultz, Legislative Counsel 
for Paralyzed Veterans of America, testified at a June 29, 2017 
Subcommittee on Economic Opportunity hearing and outlined an 
example of how the current law is negatively affecting some 
military spouses:

          ``The caveat in the law requiring the couple to share 
        the same state unfortunately excludes from the benefit 
        a number of military spouses who marry after the 
        service member established domicile or residency 
        elsewhere. For example, if the service member 
        maintained his home state domicile of Florida while 
        stationed in Georgia, and then he marries his spouse 
        who is a resident of Georgia, the spouse is unable to 
        maintain her Georgia residency for tax purposes when 
        the service member subsequently gets stationed in 
        Kentucky. While she can feasibly maintain domicile in 
        Georgia, current law does not protect her from 
        statutory residency laws in Kentucky. If she was able 
        to independently establish domicile in Florida, she 
        would be eligible for this benefit upon moving to 
        Kentucky. Similarly, if the service member changed his 
        domicile to Georgia, she would be eligible. But it is 
        unlikely the spouse can meet the requirements for 
        Florida, and because Florida has no state income tax, 
        few service members would abandon that state as their 
        domicile.''

    The Committee believes that this discrepancy was not the 
intention of P.L. 111-97 and that it can put an unfair burden 
on some military spouses despite the fact that these military 
families are facing the same transient lifestyle and undergoing 
the same stress as other military families. Therefore, section 
2 of H.R. 282 would amend section 511(a)(2) of title 50, 
U.S.C., to allow the spouse of a servicemember to elect to use 
the same State of residence as the servicemember for State or 
local tax purposes regardless of when or where the two 
individuals were married. These changes would apply with 
respect to any return of State or local income tax filed for 
any taxable year beginning with the taxable year that includes 
enactment. While this provision would not require the spouse to 
claim the same residence as the servicemember, the Committee 
believes that this change in the law would better fulfill the 
intent of the SCRA and the protections that are extended to our 
servicemembers and their families while they are serving on 
active duty.

Section 3. Residence of spouses of servicemembers for voting

    The SCRA also protects servicemembers by allowing them to 
maintain a certain State of residency or domicile, despite 
absence from that State due to military orders, for voting 
purposes in Federal, State, or local elections. Allowing them 
to continue voting in the State that they consider home 
regardless of where the military moves them, benefits the 
servicemember similarly as allowing them to maintain the same 
State of residence for tax purposes, and alleviates arduous 
voter registration requirements on our military men and woman 
after each move.
    Public Law 111-97 also extended these voting protections to 
military spouses after concern that ``[spouses] are 
disenfranchised from voting; often times not arriving to a new 
state in time to vote in primaries and do not have ample 
opportunity to get to know the Federal, state or local 
candidates or adequate time to learn their policies and 
legislative agendas. It is confusing when one state allows a 
military spouse to vote via absentee ballot, yet the state 
where the spouse is physically located does not.''\1\ As was 
the case with maintaining a certain residence for tax purposes, 
this law did not extend these same voting protections to 
spouses who marry the servicemember after the active duty 
member has already moved from the State in which they are 
claiming residence. The Committee believes that comparable to 
updating tax forms after each move, updating voter registration 
paperwork after each permanent change in duty station puts an 
unfair and complicated burden on some military spouses that is 
not required for other spouses just due to when they married 
the servicemember. The Committee also believes that spouses and 
servicemembers should be able to vote in the same area for 
which they pay taxes.
---------------------------------------------------------------------------
    \1\Senate Report 111-046--MILITARY SPOUSES RESIDENCY RELIEF ACT.
---------------------------------------------------------------------------
    Section 3 of H.R. 282 would amend Section 705(b) title 50, 
U.S.C., by allowing the spouse of a servicemember to elect to 
use the same residence as the servicemember for State and local 
voting purposes, even if they are absent from that State due to 
military orders and regardless of when or where they got 
married. The Committee believes that this will fulfill the 
intent of SCRA and P.L. 111-97 and lessen the confusion and 
burdens of being a military spouse.

                                Hearings

    On June 29, 2017, the Subcommittee on Economic Opportunity 
held a legislative hearing on several bill pending before the 
subcommittee including H.R. 282. The following witnesses 
testified:
          The Honorable Elise Stefanik, U.S. House of 
        Representatives, 21st district of New York; The 
        Honorable Robert Wittman, U.S House of Representatives, 
        1st district of Virginia; The Honorable Claudia Tenney, 
        U.S. House of Representatives, 22nd district of New 
        York; The Honorable David Cicilline, U.S. House of 
        Representatives, 1st district of Rhode Island; The 
        Honorable Scott Taylor, U.S. House of Representatives, 
        2nd district of Virginia; Mr. Curtis L. Coy, Deputy 
        Under Secretary for Economic Opportunity, Veterans 
        Benefits Administration, U.S. Department of Veterans 
        Affairs, who was accompanied by Ms. Tia Butler, 
        Executive Director, Corporate Senior Executive 
        Management Office, Human Resources and Administration, 
        U.S. Department of Veterans Affairs, and Mr. Jeffrey 
        London, Director, Loan Guaranty Service, Veterans 
        Benefits Administration, U.S. Department of Veterans 
        Affairs; Maj. Gen. Jeffrey E. Phillips, USAR (Ret.), 
        Executive Director, Reserve Officers Association; and 
        Mr. Gabriel Stultz, Legislative Counsel, Paralyzed 
        Veterans of America.
    The following organizations submitted statements for the 
record:
          U.S. Department of Defense and U.S. Chamber of 
        Commerce.

                       Subcommittee Consideration

    On July 12, 2017 the Subcommittee on Economic Opportunity 
met in an open markup session, a quorum being present, and 
ordered H.R. 282 favorably forwarded to the Full Committee by 
voice vote.

                        Committee Consideration

    On July 19, 2017, the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 282 be 
reported favorably to the House of Representatives by voice 
vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 282 favorably 
reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are to ensure that spouses of 
servicemembers are able to claim the same state of residence as 
the servicemember even if the spouse has not lived in that 
state to ensure that, for tax purposes and voting purposes, the 
spouse is not negatively impacted by the mobility of active 
duty service.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  Earmarks and Tax and Tariff Benefits

    H.R. 282 does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
this bill. However, clause 3(d)(3)(B) of that Rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974. The Committee has requested but not received a cost 
estimate for this bill from the Director of the Congressional 
Budget Office. The Committee believes that enactment of this 
bill would result in no direct spending.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office. The Committee has 
requested did not receive at the time of the filing of the bill 
report, from the Director of the Congressional Budget Office a 
statement as to whether this bill contains any new budget 
authority, spending authority, credit authority, or an increase 
or decrease in revenues or tax expenditures. The Committee 
believes and CBO has preliminarily estimated that there are no 
effects on direct spending or revenues.

                       Federal Mandates Statement

    With respect to the requirements of Section 423 of the 
Congressional Budget and Impoundment Control Act (as amended by 
Section 101(a)(2) of the Unfunded Mandate Reform Act, P.L. 104-
4), the Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether the provisions of the reported bill include unfunded 
mandates. The Committee believes, and the Congressional Budget 
Office has preliminarily estimated that legislation does not 
contain any unfunded mandates.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
282.

                 Statement of Constitutional Authority

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 282 is authorized by Congress' power to 
``provide for the common Defense and general Welfare of the 
United States.''

                  Applicability to Legislative Branch

    The Committee finds that H.R. 282 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that no provision of H.R. 282 establishes 
or reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), 
H.R. 282 would not prescribe the Secretary to create any new 
regulations.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    Section 1 cites the short title of H.R. 282 to be the 
``Military Residency Choice Act.''

Section 2. Residence of spouses of servicemembers for tax purposes

    Section 2(a) would amend Section 511(a)(2) of the 
Servicemembers Civil Relief Act (title 50, U.S.C. 4001(a)(2)) 
by adding at the end of the section a new sentence to allow the 
spouse of a servicemember to elect to use the same residence as 
the servicemember for tax purposes, regardless of the date of 
when or where the spouse and the servicemember got married.
    Section 2(b) would make the changes made in Section 2(a) 
applicable for any return of State or local income tax filed 
for any taxable year beginning with the taxable year that 
includes the date of enactment.

Section. 3. Residence of spouses of servicemembers for voting

    Section 3(a) would amend Section 705(b) of the 
Servicemembers Civil Relief Act (title 50, U.S.C.) by striking 
``State or local office'' and all that follows through the 
period and inserting a new paragraph which would allow a person 
who is absent from a State because the person is accompanying 
their spouse who is also absent from that same State due to 
military or naval orders shall not, solely by reason of that 
absence be deemed to have lost residence or domicile in that 
state regardless of whether that person intends to return to 
that state or gained residency in any other State. Section 3(a) 
would also allow for the spouse of a servicemember to elect to 
use the same State of residence as the servicemember regardless 
of the day on which they got married.
    Section 3(b) would make the changes made in Section 3(a) 
effective 90 days following enactment.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                    SERVICEMEMBERS CIVIL RELIEF ACT

           *       *       *       *       *       *       *
TITLE V--TAXES AND PUBLIC LANDS

           *       *       *       *       *       *       *

SEC. 511. RESIDENCE FOR TAX PURPOSES.

  (a) Residence or Domicile.--
          (1) In general.--A servicemember shall neither lose 
        nor acquire a residence or domicile for purposes of 
        taxation with respect to the person, personal property, 
        or income of the servicemember by reason of being 
        absent or present in any tax jurisdiction of the United 
        States solely in compliance with military orders.
          (2) Spouses.--A spouse of a servicemember shall 
        neither lose nor acquire a residence or domicile for 
        purposes of taxation with respect to the person, 
        personal property, or income of the spouse by reason of 
        being absent or present in any tax jurisdiction of the 
        United States solely to be with the servicemember in 
        compliance with the servicemember's military orders if 
        the residence or domicile, as the case may be, is the 
        same for the servicemember and the spouse. The spouse 
        of a servicemember may elect to use the same residence 
        for purposes of taxation as the servicemember 
        regardless of the date on which the marriage of the 
        spouse and the servicemember occurred.
  (b) Military Service Compensation.--Compensation of a 
servicemember for military service shall not be deemed to be 
income for services performed or from sources within a tax 
jurisdiction of the United States if the servicemember is not a 
resident or domiciliary of the jurisdiction in which the 
servicemember is serving in compliance with military orders.
  (c) Income of a Military Spouse.--Income for services 
performed by the spouse of a servicemember shall not be deemed 
to be income for services performed or from sources within a 
tax jurisdiction of the United States if the spouse is not a 
resident or domiciliary of the jurisdiction in which the income 
is earned because the spouse is in the jurisdiction solely to 
be with the servicemember serving in compliance with military 
orders.
  (d) Personal Property.--
          (1) Relief from personal property taxes.--The 
        personal property of a servicemember or the spouse of a 
        servicemember shall not be deemed to be located or 
        present in, or to have a situs for taxation in, the tax 
        jurisdiction in which the servicemember is serving in 
        compliance with military orders.
          (2) Exception for property within member's domicile 
        or residence.--This subsection applies to personal 
        property or its use within any tax jurisdiction other 
        than the servicemember's or the spouse's domicile or 
        residence.
          (3) Exception for property used in trade or 
        business.--This section does not prevent taxation by a 
        tax jurisdiction with respect to personal property used 
        in or arising from a trade or business, if it has 
        jurisdiction.
          (4) Relationship to law of state of domicile.--
        Eligibility for relief from personal property taxes 
        under this subsection is not contingent on whether or 
        not such taxes are paid to the State of domicile.
  (e) Increase of Tax Liability.--A tax jurisdiction may not 
use the military compensation of a nonresident servicemember to 
increase the tax liability imposed on other income earned by 
the nonresident servicemember or spouse subject to tax by the 
jurisdiction.
  (f) Federal Indian Reservations.--An Indian servicemember 
whose legal residence or domicile is a Federal Indian 
reservation shall be taxed by the laws applicable to Federal 
Indian reservations and not the State where the reservation is 
located.
  (g) Definitions.--For purposes of this section:
          (1) Personal property.--The term ``personal 
        property'' means intangible and tangible property 
        (including motor vehicles).
          (2) Taxation.--The term ``taxation'' includes 
        licenses, fees, or excises imposed with respect to 
        motor vehicles and their use, if the license, fee, or 
        excise is paid by the servicemember in the 
        servicemember's State of domicile or residence.
          (3) Tax jurisdiction.--The term ``tax jurisdiction'' 
        means a State or a political subdivision of a State.

           *       *       *       *       *       *       *

TITLE VII--FURTHER RELIEF

           *       *       *       *       *       *       *

SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL AND SPOUSES OF 
                    MILITARY PERSONNEL.

  (a) In General.--For the purposes of voting for any Federal 
office (as defined in section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431)) or a State or local 
office, a person who is absent from a State in compliance with 
military or naval orders shall not, solely by reason of that 
absence--
          (1) be deemed to have lost a residence or domicile in 
        that State, without regard to whether or not the person 
        intends to return to that State;
          (2) be deemed to have acquired a residence or 
        domicile in any other State; or
          (3) be deemed to have become a resident in or a 
        resident of any other State.
  (b) Spouses.--For the purposes of voting for any Federal 
office (as defined in section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431)) or a [State or local 
office, a person who is absent from a State because the person 
is accompanying the person's spouse who is absent from that 
same State in compliance with military or naval orders shall 
not, solely by reason of that absence--
          [(1) be deemed to have lost a residence or domicile 
        in that State, without regard to whether or not the 
        person intends to return to that State;
          [(2) be deemed to have acquired a residence or 
        domicile in any other State; or
          [(3) be deemed to have become a resident in or a 
        resident of any other State.] State or local office--
          (1) a person who is absent from a State because the 
        person is accompanying the person's spouse who is 
        absent from that same State in compliance with military 
        or naval orders shall not, solely by reason of that 
        absence--
                  (A) be deemed to have lost a residence or 
                domicile in that State, without regard to 
                whether or not the person intends to return to 
                that State;
                  (B) be deemed to have acquired a residence or 
                domicile in any other State; or
                  (C) be deemed to have become a resident in or 
                a resident of any other State; and
          (2) the spouse of a servicemember may elect to use 
        the same residence as the servicemember regardless of 
        the date on which the marriage of the spouse and the 
        servicemember occurred.

           *       *       *       *       *       *       *

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