[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 394 Enrolled Bill (ENR)]

        H.R.394

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
  the fourth day of January, one thousand nine hundred and ninety-five


                                 An Act


 
 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) In General.--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 of 1986 that is exempt under section 
        501(a) 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--
                ``(i) 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, or

                ``(ii) is a payment received after termination of 
            employment and under a plan, program, or arrangement (to 
            which such employment relates) maintained solely for the 
            purpose of providing retirement benefits for employees in 
            excess of the limitations imposed by 1 or more of sections 
            401(a)(17), 401(k), 401(m), 402(g), 403(b), 408(k), or 415 
            of such Code or any other limitation on contributions or 
            benefits in such Code on plans to which any of such 
            sections apply.
    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.
    ``(e) 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.