§ 4001. Residence for tax purposes

1,255 words·~6 min read·/usc/title-50/section-4001

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(a)Residence or domicile

(1)In general A servicemember shall neither lose nor acquire a residence or domicile for purposes of taxation with respect to the person, personal property, or income of the servicemember by reason of being absent or present in any tax jurisdiction of the United States solely in compliance with military orders.

(2)Spouses A spouse of a servicemember shall neither lose nor acquire a residence or domicile for purposes of taxation with respect to the person, personal property, or income of the spouse by reason of being absent or present in any tax jurisdiction of the United States solely to be with the servicemember in compliance with the servicemember’s military orders.

(3)Election For any taxable year of the marriage, a servicemember and the spouse of such servicemember may elect to use for purposes of taxation, regardless of the date on which the marriage of the servicemember and the spouse occurred, any of the following:

(A)The residence or domicile of the servicemember.

(B)The residence or domicile of the spouse.

(C)The permanent duty station of the servicemember.

(b)Military service compensation Compensation of a servicemember for military service shall not be deemed to be income for services performed or from sources within a tax jurisdiction of the United States if the servicemember is not a resident or domiciliary of the jurisdiction in which the servicemember is serving in compliance with military orders.

(c)Income of a military spouse Income for services performed by the spouse of a servicemember shall not be deemed to be income for services performed or from sources within a tax jurisdiction of the United States if the spouse is not a resident or domiciliary of the jurisdiction in which the income is earned because the spouse is in the jurisdiction solely to be with the servicemember serving in compliance with military orders.

(d)Personal property

(1)Relief from personal property taxes The personal property of a servicemember or the spouse of a servicemember shall not be deemed to be located or present in, or to have a situs for taxation in, the tax jurisdiction in which the servicemember is serving in compliance with military orders.

(2)Exception for property within member’s domicile or residence This subsection applies to personal property or its use within any tax jurisdiction other than the servicemember’s or the spouse’s domicile or residence.

(3)Exception for property used in trade or business This section does not prevent taxation by a tax jurisdiction with respect to personal property used in or arising from a trade or business, if it has jurisdiction.

(4)Relationship to law of State of domicile Eligibility for relief from personal property taxes under this subsection is not contingent on whether or not such taxes are paid to the State of domicile.

(e)Increase of tax liability A tax jurisdiction may not use the military compensation of a nonresident servicemember to increase the tax liability imposed on other income earned by the nonresident servicemember or spouse subject to tax by the jurisdiction.

(f)Federal Indian reservations An Indian servicemember whose legal residence or domicile is a Federal Indian reservation shall be taxed by the laws applicable to Federal Indian reservations and not the State where the reservation is located.

(g)Definitions For purposes of this section:

(1)Personal property The term “personal property” means intangible and tangible property (including motor vehicles).

(2)Taxation The term “taxation” includes licenses, fees, or excises imposed with respect to motor vehicles and their use, if the license, fee, or excise is paid by the servicemember in the servicemember’s State of domicile or residence.

(3)Tax jurisdiction The term “tax jurisdiction” means a State or a political subdivision of a State.

(Oct. 17, 1940, ch. 888, title V, § 511, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2858; amended Pub. L. 111–97, § 3(a), Nov. 11, 2009, 123 Stat. 3008; Pub. L. 115–407, title III, § 302(a), Dec. 31, 2018, 132 Stat. 5373; Pub. L. 117–333, § 18, Jan. 5, 2023, 136 Stat. 6137.)

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