SENATE BILL REPORT

                                    SB 5001

                            AS OF JANUARY 24, 1991

Brief Description:  Exempting from execution in‑state property of persons owing income tax in other states.

SPONSORS:Senators Barr, Nelson, Rasmussen, Conner and Snyder.

SENATE COMMITTEE ON GOVERNMENTAL OPERATIONS

Staff:  Rod McAulay (786‑7754)

Hearing Dates:January 28, 1991

BACKGROUND:

Washington residents who formerly worked in another state which imposes an income tax on their state pension or retirement benefits, continue to be liable for such taxes.  They can be sued for such taxes even though they no longer use the taxing state's services, participate in its elections, or take advantage of tax exemptions or credits available to its residents.

SUMMARY:

Where another state attempts to collect an income tax on state pension or retirement benefits paid to a former employee of that state who is now a Washington resident, the property in this state owned by the taxpayer is exempt from execution.  The authority granted other states to sue in Washington courts to collect taxes is amended to exclude income taxes on pension and retirement benefits.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested