Text: H.R.394 — 104th Congress (1995-1996)All Information (Except Text)
Public Law No: 104-95 (01/10/1996)
[104th Congress Public Law 95]
[From the U.S. Government Printing Office]
[[Page 109 STAT. 979]]
Public Law 104-95
To amend title 4 of the United States Code to limit State taxation of
certain pension income. <<NOTE: Jan. 10, 1996 - [H.R. 394]>>
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
(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
``(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
``(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
``(II) a period of not less than 10
[[Page 109 STAT. 980]]
``(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
``(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
``114. Limitation on State income taxation of certain pension income''.
(c) <<NOTE: 4 USC 114 note.>> Effective Date.--The amendments made
by this section shall apply to amounts received after December 31, 1995.
Approved January 10, 1996.
LEGISLATIVE HISTORY--H.R. 394:
HOUSE REPORTS: No. 104-389 (Comm. on the Judiciary).
CONGRESSIONAL RECORD, Vol. 141 (1995):
Dec. 18, considered and passed House.
Dec. 22, considered and passed Senate.