April 11, 1995
TO: OPERATIONS MEMBERS No. 19-95
PENSION MEMBERS No. 23-95
TRANSFER AGENT ADVISORY COMMITTEE No. 26-95
RE: ADDITIONAL SOURCE STATE TAXATION LEGISLATION INTRODUCED
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As we previously informed you, "source state taxation" legislation was introduced in January
1995 by Senator Harry Reid and Congresswoman Barbara Vucanovich both of Nevada. (See Institute
Memorandum to Operations Members No. 3-95, Pension Members No. 7-95 and Transfer Agency
Advisory Committee No. 5-95, dated January 16, 1995). The Reid/Vucanovich bills provide a blanket
prohibition on any State imposing income taxes "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)." Another bill, H.R.
744, introduced by Rep. Owen Pickett of Virginia, would prohibit source state taxation of "qualified
pension income" distributed in the form of annuity-like payments and certain lump sum distributions
received after the age of 59½ of $25,000 or less. A copy of H.R. 744 is attached.
We will keep you informed of developments.
John J. Canary, Jr.
Assistant Counsel - Pension
Attachments