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Exit Tax Prevention: Protecting Residents Relocating Between States

This act aims to protect individuals who move their permanent residence to another state from being subjected to additional taxes by their former state. This means that if you relocate, your previous state cannot impose special income, wealth, or similar taxes related to your departure. These rules will apply starting from January 1, 2022.
Key points
Prohibits states and local taxing jurisdictions from imposing income, wealth, or similar taxes on residents who have permanently relocated to another state.
The act applies to individuals who have changed their permanent residence to another state or its taxing jurisdiction.
The provisions take effect for calendar years beginning after December 31, 2021, and do not apply to tax obligations accrued before this date.
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Additional Information
Print number: 117_HR_2165
Sponsor: Rep. Schweikert, David [R-AZ-6]
Process start date: 2021-03-23