[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 479 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 479

  To amend title 4 of the United States Code to prohibit a State from 
  imposing a discriminatory tax on income earned within such State by 
                      nonresidents of such State.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 1, 2005

 Ms. Cantwell introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend title 4 of the United States Code to prohibit a State from 
  imposing a discriminatory tax on income earned within such State by 
                      nonresidents of such State.

    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 ``Nonresident Income Tax Freedom Act 
of 2005''.

SEC. 2. PROHIBITION ON IMPOSITION OF INCOME TAXES BY STATES ON 
              NONRESIDENTS.

    (a) In General.--Chapter 4 of title 4, United States Code, is 
amended by adding at the end the following new section:
``Sec. 127. Prohibition on imposition of income taxes by states on 
              nonresidents
    ``Except to the extent otherwise provided in any voluntary compact 
between or among States, a State or political subdivision thereof may 
not impose a tax on income earned within such State or political 
subdivision by nonresidents of such State.''.
    (b) Clerical Amendment.--The table of sections for chapter 4 of 
title 4, United States Code, is amended by adding at the end the 
following new item:

``127. Prohibition on imposition of income taxes by States on 
                            nonresidents.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of enactment of this Act.
                                 <all>