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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 44 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                 S. 44

 To amend title 4 of the United States Code to limit State taxation of 
                        certain pension income.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

  Mr. Reid (for himself and Mr. Bryan) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend title 4 of the United States Code to limit State taxation of 
                        certain pension income.

    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) Amendment.--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 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.
        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.
    ``(c) 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) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 1994.
                                 <all>
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