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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1762 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 1762

 To amend the Internal Revenue Code of 1986 to deny Federal tax return 
information to States which impose an income tax on the pension income 
   of individuals who are neither residents nor domiciliaries of the 
                                 State.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 7, 1995

  Mr. Ensign (for himself, Mrs. Vucanovich, Mr. Calvert,  Mr. Fox of 
   Pennsylvania, Mr. McDermott, Mr. Doolittle, Mr. Christensen, Mr. 
  Hastings of Washington, Mr. Schiff, and Mr. Browder) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to deny Federal tax return 
information to States which impose an income tax on the pension income 
   of individuals who are neither residents nor domiciliaries of the 
                                 State.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DENIAL OF TAX INFORMATION TO STATES TAXING PENSION INCOME OF 
              INDIVIDUALS WHO ARE NEITHER RESIDENTS NOR DOMICILIARIES 
              OF THE STATE.

    (a) In General.--Subsection (d) of section 6103 of the Internal 
Revenue Code of 1986 (relating to disclosure to State tax officials and 
State and local law enforcement agencies) is amended by adding at the 
end the following new paragraph:
            ``(5) Denial of information to states which impose pension 
        source tax.--
                    ``(A) In general.--No returns or return information 
                may be disclosed under paragraph (1) to any agency, 
                body, or commission of a State (or any legal 
                representative thereof) during any period that such 
                State imposes a pension source tax.
                    ``(B) Pension source tax.--For purposes of 
                subparagraph (A), the term `pension source tax' means 
                any tax on the retirement income of any individual who 
                is neither a resident nor a domiciliary of such State.
                    ``(C) Retirement income.--The term `retirement 
                income' means any income from--
                            ``(i) a qualified retirement plan (as 
                        defined in section 4974(c)),
                            ``(ii) a simplified employee pension (as 
                        defined in section 408(k) of such Code);
                            ``(iii) an eligible deferred compensation 
                        plan (as defined in section 457 of such Code);
                            ``(iv) a governmental plan (as defined in 
                        section 414(d) of such Code);
                            ``(v) a trust described in section 
                        501(c)(18) of such Code; or
                            ``(vi) a nonqualified deferred compensation 
                        plan (as defined in section 3121(v)(2)(C) of 
                        such Code).
                Such term includes any retired or retainer pay of a 
                member or former member of a uniform service computed 
                under chapter 71 of title 10, United States Code.''
    (b) Technical Amendment.--Subparagraph (B) of section 6103(b)(5) of 
such Code is amended by striking ``(d)(1)'' and inserting ``(d)''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the day after the close of the 1-year period 
        beginning on the date of the enactment of this Act.
            (2) Coordination with state legislatures.--In no event 
        shall the 1-year period referred to in paragraph (1) end with 
        respect to any State before the earlier of--
                    (A) the close of the first session of the State 
                legislature which begins after the date of the 
                enactment of this Act, or
                    (B) the close of a session of the State legislature 
                which begins before such date and remains in session 
                for at least 25 calendar days after such date.
            (3) Special rules.--For purposes of paragraph (2)--
                    (A) In the case of a State which has a 2-year 
                legislative session, each year of such session shall be 
                treated as a separate regular session of the State 
                legislature.
                    (B) The term ``State'' has the meaning given to 
                such term by section 6103(b)(5) of the Internal Revenue 
                Code of 1986.
                                 <all>
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