[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4694 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4694

To exclude from Federal income taxation amounts received in settlement 
of refund claims for State or local income taxes on Federal retirement 
 benefits which were not subject to State or local income taxation on 
         the same basis as State or local retirement benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 1994

  Mrs. Byrne (for herself, Mr. Boucher, Mr. Moran, Mr. Scott, and Mr. 
   Sisisky) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To exclude from Federal income taxation amounts received in settlement 
of refund claims for State or local income taxes on Federal retirement 
 benefits which were not subject to State or local income taxation on 
         the same basis as State or local retirement benefits.

    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 ``Federal Retirees Fairness Act''.

SEC. 2. EXCLUSION FOR REFUNDS OF STATE OR LOCAL INCOME TAXES 
              ATTRIBUTABLE TO THE IMPROPER TAXATION OF FEDERAL 
              RETIREMENT BENEFITS.

    (a) General Rule.--For purposes of the Internal Revenue Code of 
1986, gross income shall not include any amount (including interest) 
received after December 31, 1994, from a State in settlement of a claim 
for a refund of State income taxes paid to such State which are 
attributable to the taxation of any protected retirement benefit paid 
before January 1, 1990, in a manner inconsistent with the manner 
required under Davis v. Michigan Department of the Treasury, 489 U.S. 
803 (1989).
    (b) Definitions.--For purposes of subsection (a)--
            (1) Protected retirement benefit.--The term ``protected 
        retirement benefit'' means any retirement benefit of an officer 
        or employee referred to in section 111 of title 4, United 
        States Code.
            (2) State.--The term ``State'' includes any political 
        subdivision of a State and the District of Columbia.
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