I
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 Penn-
sylvania, 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 Fed-
eral 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 Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. DENIAL OF TAX INFORMATION TO STATES TAX-
ING PENSION INCOME OF INDIVIDUALS WHO
ARE NEITHER RESIDENTS NOR DOMICIL-
IARIES 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) dur-
ing any period that such State imposes a pen-
sion source tax.
‘‘(B) PENSION
SOURCE
TAX.—For pur-
poses of subparagraph (A), the term ‘pension
source tax’ means any tax on the retirement in-
come 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)),
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‘‘(ii) a simplified employee pension (as
defined in section 408(k) of such Code);
‘‘(iii) an eligible deferred compensa-
tion 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 com-
pensation 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.
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(2) COORDINATION
WITH
STATE
LEGISLA-
TURES.—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 leg-
islature which begins before such date and re-
mains in session for at least 25 calendar days
after such date.
(3) SPECIAL
RULES.—For purposes of para-
graph (2)—
(A) In the case of a State which has a 2-
year legislative session, each year of such ses-
sion shall be treated as a separate regular ses-
sion 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.
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