§574. Residence for tax purposes

(1) For the purposes of taxation in respect of any person, or of his personal property, income, or gross income, by any State, Territory, possession, or political subdivision of any of the foregoing, or by the District of Columbia, such person shall not be deemed to have lost a residence or domicile in any State, Territory, possession, or political subdivision of any of the foregoing, or in the District of Columbia, solely by reason of being absent therefrom in compliance with military or naval orders, or to have acquired a residence or domicile in, or to have become resident in or a resident of, any other State, Territory, possession, or political subdivision of any of the foregoing, or the District of Columbia, while, and solely by reason of being, so absent. For the purposes of taxation in respect of the personal property, income, or gross income of any such person by any State, Territory, possession, or political subdivision of any of the foregoing, or the District of Columbia, of which such person is not a resident or in which he is not domiciled, compensation for military or naval service shall not be deemed income for services performed within, or from sources within, such State, Territory, possession, political subdivision, or District, and personal property shall not be deemed to be located or present in or to have a situs for taxation in such State, Territory, possession, or political subdivision, or district. Where the owner of personal property is absent from his residence or domicile solely by reason of compliance with military or naval orders, this section applies with respect to personal property, or the use thereof, within any tax jurisdiction other than such place of residence or domicile, regardless of where the owner may be serving in compliance with such orders. Nothing contained in this section shall prevent taxation by any State, Territory, possession, or political subdivision of any of the foregoing, or the District of Columbia in respect of personal property used in or arising from a trade or business, if it otherwise has jurisdiction. This section shall be effective as of September 8, 1939, except that it shall not require the crediting or refunding of any tax paid prior to October 6, 1942.

(2) When used in this section, (a) the term "personal property" shall include tangible and intangible property (including motor vehicles), and (b) the term "taxation" shall include but not be limited to licenses, fees, or excises imposed in respect to motor vehicles or the use thereof, but only if a license, fee, or excise required by the State or territory, possession, or District of Columbia of which the person is a resident or in which the person is domiciled has been paid.

(Oct. 17, 1940, ch. 888, art. V, §514, as added Oct. 6, 1942, ch. 581, §17, 56 Stat. 777 ; amended July 3, 1944, ch. 397, §1, 58 Stat. 722 ; Pub. L. 87–771, Oct. 9, 1962, 76 Stat. 768 ; Pub. L. 102–12, §9(24), Mar. 18, 1991, 105 Stat. 41 .)

Amendments

1991-Par. (1). Pub. L. 102–12, §9(24)(A), substituted "orders. Nothing" for "orders: Provided, That nothing".

Par. (2). Pub. L. 102–12, §9(24)(B), substituted "the use thereof, but only if a license, fee, or excise required by the State or territory, possession, or District of Columbia of which the person is a resident or in which the person is domiciled has been paid" for "the use thereof: Provided, That the license, fee, or excise required by the State, Territory, possession, or District of Columbia of which the person is a resident or in which he is domiciled has been paid".

1962-Pub. L. 87–771 inserted sentence in par. (1) making this section applicable with respect to personal property, or the use thereof, within any tax jurisdiction other than the place of residence or domicile, regardless of where the owner may be serving in compliance with military or naval orders where the owner of personal property is absent from his residence or domicile solely by reason of compliance with such orders.

1944-Act July 3, 1944, inserted "personal" before "property" in first sentence, "personal property", before "income or gross income", "and personal property shall not be deemed to be located or present in or to have a situs for taxation in such State, Territory, possession, or political subdivision, or district: Provided, That nothing contained in this section shall prevent taxation by any State, Territory, possession, or political subdivision of any of the foregoing, or the District of Columbia in respect of personal property used in or arising from a trade or business, if it otherwise has jurisdiction" after "or District" in second sentence, and substituted "October 6, 1942" for "the date of the enactment of the Soldiers' and Sailors' Civil Relief Act amendments of 1942" in third sentence.

Crediting or Refunding Tangible Personal Property Tax

Section 2 of act July 3, 1944, provided: "Nothing contained in this Act [amending this section] shall be construed to require the crediting or refunding of any tax in respect of tangible personal property (including licenses, fees, or excise imposed in respect of motor vehicles or the use thereof) paid prior to the date of its enactment [July 3, 1944]."

Section Referred to in Other Sections

This section is referred to in title 5 section 5569.