S. 479

Nonresident Income Tax Freedom Act of 2005

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Contents

II

109th CONGRESS

1st Session

S. 479

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.

1.

Short title

This Act may be cited as the 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 new section:

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.