[Congressional Record Volume 144, Number 79 (Wednesday, June 17, 1998)]
[Extensions of Remarks]
[Pages E1146-E1147]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               TAX REFORM

                                 ______
                                 

                           HON. BOB SCHAFFER

                              of colorado

                    in the house of representatives

                        Wednesday, June 17, 1998

  Mr. BOB SCHAFFER of Colorado. Mr. Speaker, as the House of 
Representatives continues the debate over tax reform, giving the states 
the flexibility they need to efficiently conduct their business must be 
a priority.
  I hope my colleagues will seriously reflect on the wishes of the 
Colorado people as expressed by our state Legislature. I submit for the 
Record the text of this Memorial:

                      Senate Joint Memorial 98-001

       By Senators Coffman, Alexander, Ament, Arnold, Bishop, 
     Blickensderfer, Chlouber, Congrove, Dennis, Feeley, 
     Hernandez, Hopper, Johnson, Lacy, Lamborn, Linkhart, 
     Martinez, Matsunaka, Mutzebaugh, Norton, Pascoe, Perlmutter, 
     Phillips, Powers, Reeves, Rizzuto, Rupert, Schroeder, Tanner, 
     Tebedo, Thiebaut, Wattenberg, Weddig, Wells, and Wham;
       Also Representatives Adkins, Agler, K. Alexander, Allen, 
     Anderson, Arrington, Bacon, C. Berry, G. Berry, Chavez, 
     Clarke, Dean, Dyer, Entz, Epps, Faatz, George, Gordon, 
     Gotlieb, Grampsas, Grossman, Hagedorn, Hefley, S. Johnson, 
     June, Kaufman, Keller, Kreutz, Lawrence, Leyba, Mace, May, 
     McElhany, McPherson, Miller, Morrison, Musgrave, Nichol, 
     Owen, Pankey, Paschall, Pfiffner, Reeser, Romero, Salaz, 
     Saliman, Schauer, Sinclair, Smith, Snyder, Spradley,

[[Page E1147]]

     Sullivant, Swenson, Takis, Tate, Taylor, Tool, Tucker, Tupa, 
     Udall, Veiga, S. Williams, T. Williams, Young, and Zimmerman.


 Memoralizing Congress to enact legislation that prohibits states from 
 imposing an income tax on severance payments and termination payments 
                      to nonresidents individuals.

       Whereas, In 1996, the Congress of the United States enacted 
     Public Law 95-104, which amended title 4 of the United States 
     Code to limit state taxation of certain pension income; and
       Whereas, Section (1)(a) of Public Law 95-104, codified at 4 
     U.S.C. sec. 114, prohibits states from imposing an income tax 
     on any retirement payments made by an employer of such state 
     to an individual who has terminated employment in and who is 
     not a resident of such state; and
       Whereas, Severance payments and termination payments made 
     by an employer to a nonresident individual are not accorded 
     the same tax treatment as retirement income under 4 U.S.C. 
     sec. 114 and are therefore subject to the income tax of the 
     state where the employer making such severance payments and 
     termination payments is located; and
       Whereas, The result of this inconsistent tax treatment of 
     similar retirement payments is that severance payments and 
     termination payments may be taxable to the employee in both 
     the state of the employee's former residence and the state in 
     which the employee currently resides; and
       Whereas, Subjecting severance payments and termination 
     payments to different tax treatment than other retirement 
     payments and income results in inconsistent and inequitable 
     treatment of severance payments and termination payments to 
     taxpayers that have relocated to another state after 
     terminating their employment; and
       Whereas, The enactment of federal legislation that 
     prohibits a state from imposing an income tax on severance 
     payments and termination payments to an individual that is 
     not a resident of that state will result in the tax treatment 
     of such payments that is consistent with the tax treatment of 
     other retirement income; now, therefore,
       Be It Resolved by the Senate of the Sixty-first General 
     Assembly of the State of Colorado, the House of 
     Representatives concurring herein:
       That the Congress of the United States is hereby 
     memorialized to adopt legislation amending 4 U.S.C. sec. 114 
     to include severance payments and termination payments within 
     the retirement income of a nonresident individual upon which 
     states may not impose income tax.
       Be It Further Resolved, That copies of this Joint Memorial 
     be sent to the President of the United States Senate, to the 
     Speaker of the United States House of Representatives, and to 
     each member of Colorado's congressional delegation.
     Tom Norton,
       President of the Senate.
     Patricia K. Dicks,
       Secretary of the Senate.
     Charles E. Berry,
       Speaker of the House of Representatives.
     Judith M. Ridrigue,
       Chief Clerk of the House of Representatives.

       

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