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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 394 Reported in House (RH)]

                                                 Union Calendar No. 196

104th CONGRESS

  1st Session

                               H. R. 394

                          [Report No. 104-389]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                            December 7, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
                                                 Union Calendar No. 196
104th CONGRESS
  1st Session
                                H. R. 394

                          [Report No. 104-389]

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

Mrs. Vucanovich (for herself, Mr. Ensign, Mr. Stump, Mr. Doolittle, and 
    Mr. Burton of Indiana) introduced the following bill; which was 
               referred to the Committee on the Judiciary

                            December 7, 1995

Additional sponsors: Mr. Coble, Mr. Dornan, Mr. Tanner, Mr. Dicks, Mr. 
 Sensenbrenner, Mr. Hunter, Mr. Bilirakis, Mr. Thomas, Mr. Schiff, Mr. 
Gibbons, Mr. Hansen, Mr. Hefley, Mr. Bartlett of Maryland, Mr. Hastert, 
Mr. Wolf, Mr. Bateman, Mr. Bereuter, Mr. Gordon, Mr. Edwards, Mr. Baker 
of California, Mr. Inglis of South Carolina, Mr. Walsh, Mr. Holden, Mr. 
Gunderson, Mr. Skeen, Ms. Molinari, Mr. Ballenger, Mr. Knollenberg, Mr. 
   Cunningham, Mr. Hancock, Mr. Royce, Mr. Sanford, Mr. Saxton, Mr. 
LaTourette, Mr. Bilbray, Mr. Kolbe, Mr. Farr of California, Mr. Taylor 
  of North Carolina, Mr. Lightfoot, Mr. Richardson, Mr. Andrews, Mr. 
 Gallegly, Mr. Packard, Mr. Greenwood, Mrs. Thurman, Mr. Stearns, Mr. 
Cox of California, Mr. McDermott, Mr. Emerson, Mr. Baker of Louisiana, 
Mr. Orton, Mr. McKeon, Mr. Fields of Texas, Ms. Dunn of Washington, Mr. 
Weller, Mr. Kim, Mr. Faleomavaega, Mr. Weldon of Florida, Mr. Chapman, 
  Mr. Herger, Mr. Lewis of California, Mr. Rahall, Mrs. Lincoln, Mr. 
   Calvert, Mrs. Lowey, Mrs. Smith of Washington, Mr. Gejdenson, Ms. 
  Furse, Mr. Hall of Texas, Mr. Wilson, Mr. King, Mr. Livingston, Mr. 
 Goss, Mr. Brown of California, Mr. Hayworth, Mr. Pombo, Mr. Wamp, Mr. 
 Bryant of Tennessee, Mr. Upton, Mr. Bliley, Mrs. Mink of Hawaii, Mr. 
Solomon, Mrs. Seastrand, Mr. Nethercutt, Mr. Callahan, Mr. Rohrabacher, 
  Mr. Horn, Mr. Hastings of Washington, Mr. Johnston of Florida, Ms. 
 Lofgren, Mr. Miller of Florida, Mr. Schaefer, Mr. DeFazio, Mr. Foley, 
 Mr. Cramer, Mr. Barton of Texas, Mr. Canady of Florida, Mr. McCollum, 
Mr. Scarborough, Mr. Martini, Mr. Filner, Mr. Latham, Mr. Smith of New 
 Jersey, Mr. Taylor of Mississippi, Mr. Smith of Texas, Mr. Moorhead, 
    Mr. Roberts, Mr. Burr, Mr. Browder, Mr. Camp, Ms. Woolsey, Mr. 
  Hutchinson, Mr. Bonilla, Mr. Dickey, Mr. Clement, Mr. Chrysler, Mr. 
  Johnson of South Dakota, Mr. Sam Johnson of Texas, Mr. Peterson of 
   Minnesota, Mr. Paxon, Mrs. Kelly, Mr. Souder, Mr. Torkildsen, Mr. 
Sisisky, Mrs. Morella, Mr. Crapo, Ms. Pryce, Mr. Baesler, Mr. Bass, Mr. 
Linder, Mr. Sanders, Mr. Leach, Mr. Ortiz, Mr. Fazio of California, Mr. 
 Quinn, Mr. Frazer, Mr. Norwood, Mr. Hoke, Mr. Riggs, Mr. McDade, Mr. 
Mineta, Mr. Hinchey, Mr. Lantos, Mr. Bentsen, Mrs. Meek of Florida, Mr. 
Rose, Mr. Bunning of Kentucky, Mr. Salmon, Mr. Houghton, Mr. Jones, Mr. 
       Boucher, Mrs. Meyers of Kansas, Mr. Frisa, and Mr. Quillen

                            December 7, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                                4, 1995]

_______________________________________________________________________

                                 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) of such Code 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 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.
        The periodic payment rule under subparagraph (I) shall not 
        apply to a plan, program, or arrangement which would (but for 
        sections 401(a)(17) and 415 of such Code) be described in 
        subparagraph (A). 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)(1) Subsection (a) shall not apply to any retirement income 
which is received by an individual during the calendar year of the loss 
of nationality of the individual under chapter 3 of title 3 of the 
Immigration and Nationality Act for reasons of avoiding taxation by the 
United States or any State (as determined by the Attorney General), or 
during any succeeding calendar year.
    ``(2) Notwithstanding any other provision of law, not later than 30 
days after the close of each calendar quarter, the Attorney General 
shall publish in the Federal Register the name of each individual with 
respect to whom a loss of nationality described in paragraph (1) occurs 
during such quarter.
    ``(d) 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, 1995.
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