IB
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 re-
ferred 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. JOHN-
STON 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 Min-
nesota, 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 Representa-
tives 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:
‘‘§ 114. Limitation on State income taxation of certain
pension income
‘‘(a) No State may impose an income tax on any re-
tirement 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 in-
come 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 de-
fined 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 sec-
tion 403(b) of such Code;
‘‘(E) an individual retirement plan de-
scribed 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 de-
scribed 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 re-
cipient (or the joint lives or joint life
expectancies of the recipient and the des-
ignated 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 mem-
ber 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 sub-
division of a State, the District of Columbia, and the
possessions of the United States.
‘‘(c)(1) Subsection (a) shall not apply to any retire-
ment 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 National-
ity Act for reasons of avoiding taxation by the United
States or any State (as determined by the Attorney Gen-
eral), 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 hav-
ing any effect on the application of section 514 of the Em-
ployee 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.