H. R. 2165
IN THE HOUSE OF REPRESENTATIVES
March 23, 2021
Mr. Schweikert (for himself, Mr. Perry, Mr. Mann, Mr. C. Scott Franklin of Florida, and Mr. Hice of Georgia) introduced the following bill; which was referred to the Committee on the Judiciary
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.
This Act may be cited as the
Exit Tax Prevention Act of 2021.
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.
For purposes of this Act:
income tax has the same meaning given to it by the taxing jurisdiction in which the resident lives.
resident has the same meaning given to it by the taxing jurisdiction in which the resident lives.
similar tax means any imposed tax on an individual relating to the net wealth, value of held assets, or annual income of such individual.
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.
wealth tax means any imposed tax on an individual’s net wealth or value of held assets.
Effective date; application
This Act shall apply to calendar years beginning after December 31, 2021.
This Act shall not apply to any tax obligation that accrues before January 1, 2022.