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Prohibition of Retroactive Asset Taxes on Nonresident Individuals

This bill prevents states from taxing the assets of people who do not live there for periods before the tax law was passed. It protects individuals from being hit with unexpected taxes on their wealth after they have moved away.
Key points
States are prohibited from taxing assets retroactively for individuals who are no longer residents.
The protection applies if the person lives in a different state when the tax law is enacted.
It ensures that moving to another state does not result in surprise tax bills for past periods.
The Act is set to take effect on January 1, 2026.
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Status:
Introduced
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Additional Information
Print number: 119_HR_7619
Sponsor: Rep. Kiley, Kevin [R-CA-3]
Process start date: 2026-02-20