January 19, 1996
TO: BOARD OF GOVERNORS No. 3-96
FEDERAL LEGISLATION COMMITTEE No. 1-96
PUBLIC INFORMATION COMMITTEE No. 2-96
RE: SOURCE STATE TAXATION LEGISLATION SIGNED BY PRESIDENT
______________________________________________________________________________
On January 10, the President signed H.R. 394, a bill precluding a state from taxing most
retirement income of former residents of that state.
The new law, which the Institute strongly supported, provides that no State may impose
an income tax on any retirement income of an individual who is not a resident or domiciliary of
such State. Most forms of retirement income fall within the scope of the law, with the exception
being income from some kinds of nonqualified pension plans.
For those members with access privileges, this memo can be found on ICINet. For
additional information, please contact as follows:
Legislative Affairs 202-326-5890
Media Relations 202-326-5860
ICINET 202-326-5933
Michael Stern
Legislative Representative
for Taxation