Title: Exit Tax Prevention Act of 2021
Policy area: Taxation

Summary:
Exit Tax Prevention Act of 2021
This bill prohibits a state, or taxing jurisdiction in the state, from imposing an income tax, wealth tax, or any similar tax on a resident who has relocated permanent residence to another state or taxing jurisdiction.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2165 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 2165

To limit the authority of a State or other related taxing jurisdiction 
to impose a tax on a resident who has relocated permanent residence to 
           another State or its related taxing jurisdiction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2021

Mr. Schweikert (for himself, Mr. Perry, Mr. Mann, Mr. C. Scott Franklin 
  of Florida, and Mr. Hice of Georgia) introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To limit the authority of a State or other related taxing jurisdiction 
to impose a tax on a resident who has relocated permanent residence to 
           another State or its related taxing jurisdiction.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Exit Tax Prevention Act of 2021''.

SEC. 2. PROHIBITION ON CERTAIN STATE AND LOCAL TAXATION.

    A State, or taxing jurisdiction in a State, may not impose an 
obligation for the collection of an income tax, wealth tax, or any 
similar tax on a resident who has relocated permanent residence to 
another State or a taxing jurisdiction of another State.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Income tax.--The term ``income tax'' has the same 
        meaning given to it by the taxing jurisdiction in which the 
        resident lives.
            (2) Resident.--The term ``resident'' has the same meaning 
        given to it by the taxing jurisdiction in which the resident 
        lives.
            (3) Similar tax.--The term ``similar tax'' means any 
        imposed tax on an individual relating to the net wealth, value 
        of held assets, or annual income of such individual.
            (4) Taxation jurisdiction.--The term ``taxing 
        jurisdiction'' means any of the several States, the District of 
        Columbia, any territory or possession of the United States, or 
        any municipality, city, county, township, parish, 
        transportation district, assessment jurisdiction, or other 
        political subdivision within the territorial limits of the 
        United States with the authority to impose a tax, charge, or 
        fee.
            (5) Wealth tax.--The term ``wealth tax'' means any imposed 
        tax on an individual's net wealth or value of held assets.

SEC. 4. EFFECTIVE DATE; APPLICATION.

    (a) Effective Date.--This Act shall apply to calendar years 
beginning after December 31, 2021.
    (b) Application.--This Act shall not apply to any tax obligation 
that accrues before January 1, 2022.
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