H.R. 1004

Nonresident Income Tax Freedom Act of 2005

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I

109th CONGRESS

1st Session

H. R. 1004

IN THE HOUSE OF REPRESENTATIVES

March 1, 2005

Mr. Baird introduced the following bill; which was referred to the Committee on the Judiciary

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.

1.

Short title

This Act may be cited as Nonresident Income Tax Freedom Act of 2005.

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:

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)

Conforming amendment

The table of sections for chapter 4 of title 4, United States Code, is amended by adding at the end the following:

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.