[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 394 Placed on Calendar Senate (PCS)]
Calendar No. 296
104th CONGRESS
1st Session
H. R. 394
_______________________________________________________________________
AN ACT
To amend title 4 of the United States Code to limit State taxation of
certain pension income.
_______________________________________________________________________
December 20, 1995
Order to be placed on the calendar
Calendar No. 296
104th CONGRESS
1st Session
H. R. 394
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 18, 1995
Received; read twice and referred to the Committee on Finance
December 20, 1995
Committee Discharged; ordered to be placed on the calendar
_______________________________________________________________________
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.
Passed the House of Representatives December 18
(legislative day, December 15), 1995.
Attest:
ROBIN H. CARLE,
Clerk.