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H.R. 2165 - Exit Tax Prevention Act of 2021

MAR. 15, 2021

H.R. 2165; Exit Tax Prevention Act of 2021

DATED MAR. 15, 2021
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Citations: H.R. 2165; Exit Tax Prevention Act of 2021

117TH CONGRESS
1ST SESSION

H.R. 2165

To limit the authority of a State or other related
taxing jurisdiction to impose a tax on a resident
who has relocated permanent residence to another
State or its related taxing jurisdiction.

IN THE HOUSE OF REPRESENTATIVES

MARCH 23, 2021

Mr. SCHWEIKERT introduced the following bill;
which was referred to the Committee on _____

A BILL

To limit the authority of a State or other related taxing jurisdiction to impose a tax on a resident who has relocated permanent residence to another State or its related taxing jurisdiction.

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 "Exit Tax Prevention Act of 2021".

SEC. 2. PROHIBITION ON CERTAIN STATE AND LOCAL TAXATION.

A State, or taxing jurisdiction in a State, may not impose an obligation for the collection of an income tax, wealth tax, or any similar tax on a resident who has relocated permanent residence to another State or a taxing jurisdiction of another State.

SEC. 3. DEFINITIONS.

For purposes of this Act:

(1) INCOME TAX. — The term "income tax" has the same meaning given to it by the taxing jurisdiction in which the resident lives.

(2) RESIDENT. — The term "resident" has the same meaning given to it by the taxing jurisdiction in which the resident lives.

(3) SIMILAR TAX. — The term "similar tax" means any imposed tax on an individual relating to the net wealth, value of held assets, or annual income of such individual.

(4) TAXATION JURISDICTION. — The term "taxing jurisdiction" means any of the several States, the District of Columbia, any territory or possession of the United States, or any municipality, city, county, township, parish, transportation district, assessment jurisdiction, or other political subdivision within the territorial limits of the United States with the authority to impose a tax, charge, or fee.

(5) WEALTH TAX. — The term "wealth tax" means any imposed tax on an individual's net wealth or value of held assets.

SEC. 4. EFFECTIVE DATE; APPLICATION.

(a) EFFECTIVE DATE. — This Act shall apply to calendar years beginning after December 31, 2021.

(b) APPLICATION. — This Act shall not apply to any tax obligation that accrues before January 1, 2022.

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