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[104th Congress Public Law 95]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ95.104]

[[Page 109 STAT. 979]]

Public Law 104-95
104th Congress

                                 An Act

 
 To amend title 4 of the United States Code to limit State taxation of 
     certain pension income. <<NOTE: Jan. 10, 1996 -  [H.R. 394]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIMITATION ON STATE INCOME TAXATION OF CERTAIN PENSION 
            INCOME.

    (a) In General.--Chapter 4 of title 4, United States Code, is 
amended by adding at the end the following:

``Sec. 114. Limitation on State income taxation of certain pension 
                        income

    ``(a) No State may impose an income tax on any retirement income of 
an individual who is not a resident or domiciliary of such State (as 
determined under the laws of such State).
    ``(b) For purposes of this section--
            ``(1) The term `retirement income' means any income from--
                    ``(A) a qualified trust under section 401(a) of the 
                Internal Revenue Code of 1986 that is exempt under 
                section 501(a) from taxation;
                    ``(B) a simplified employee pension as defined in 
                section 408(k) of such Code;
                    ``(C) an annuity plan described in section 403(a) of 
                such Code;
                    ``(D) an annuity contract described in section 
                403(b) of such Code;
                    ``(E) an individual retirement plan described in 
                section 7701(a)(37) of such Code;
                    ``(F) an eligible deferred compensation plan (as 
                defined in section 457 of such Code);
                    ``(G) a governmental plan (as defined in section 
                414(d) of such Code);
                    ``(H) a trust described in section 501(c)(18) of 
                such Code; or
                    ``(I) any plan, program, or arrangement described in 
                section 3121(v)(2)(C) of such Code, if such income--
                          ``(i) is part of a series of substantially 
                      equal periodic payments (not less frequently than 
                      annually) made for--
                                    ``(I) the life or life expectancy of 
                                the recipient (or the joint lives or 
                                joint life expectancies of the recipient 
                                and the designated beneficiary of the 
                                recipient), or
                                    ``(II) a period of not less than 10 
                                years, or

[[Page 109 STAT. 980]]

                          ``(ii) is a payment received after termination 
                      of employment and under a plan, program, or 
                      arrangement (to which such employment relates) 
                      maintained solely for the purpose of providing 
                      retirement benefits for employees in excess of the 
                      limitations imposed by 1 or more of sections 
                      401(a)(17), 401(k), 401(m), 402(g), 403(b), 
                      408(k), or 415 of such Code or any other 
                      limitation on contributions or benefits in such 
                      Code on plans to which any of such sections apply.
        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.
            ``(2) The term `income tax' has the meaning given such term 
        by section 110(c).
            ``(3) The term `State' includes any political subdivision of 
        a State, the District of Columbia, and the possessions of the 
        United States.

    ``(e) Nothing in this section shall be construed as having any 
effect on the application of section 514 of the Employee Retirement 
Income Security Act of 1974.''.
    (b) Conforming Amendment.--The table of sections for chapter 4 of 
title 4, United States Code, is amended by adding at the end the 
following:

``114. Limitation on State income taxation of certain pension income''.

    (c) <<NOTE: 4 USC 114 note.>> Effective Date.--The amendments made 
by this section shall apply to amounts received after December 31, 1995.

    Approved January 10, 1996.

LEGISLATIVE HISTORY--H.R. 394:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 104-389 (Comm. on the Judiciary).
CONGRESSIONAL RECORD, Vol. 141 (1995):
            Dec. 18, considered and passed House.
            Dec. 22, considered and passed Senate.

                                  <all>
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