Nonresident Income Tax Freedom Act of 2001

Nonresident Income Tax Freedom Act of 2001 - Amends Federal law to prohibit, except as provided for by State compact, a State or subdivision from taxing income earned in such State by nonresidents.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 759 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 759

  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.


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                   IN THE SENATE OF THE UNITED STATES

                             April 24, 2001

  Mr. Smith of New Hampshire 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nonresident Income Tax Freedom Act 
of 2001''.

SEC. 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:
``Sec. 116. 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:

``116. 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.
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