CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO CERTAIN EMPLOYEES.

SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO CERTAIN EMPLOYEES. (a) Limitation on State Authority to Tax Compensation Paid to Individuals Performing Services at Fort Campbell, Kentucky.— (1) In general.— Chapter 4 of title 4, United States Code, is amended by adding at the end the following: “§115. Limitation on State authority to tax compensation paid to individuals performing services at Fort Campbell, Kentucky “Pay and compensation paid to an individual for personal services at Fort Campbell, Kentucky, shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident”. (2) Conforming amendment.— The table of sections for chapter 4 of title 4, United States Code, is amended by adding at the end the following: “115. Limitation on State authority to tax compensation paid to individuals performing services at Fort Campbell, Kentucky.”. (3) Effective date.— The amendments made by this subsection shall apply to pay and compensation paid after the date of the enactment of this Act. (b) Clarification of State Authority to Tax Compensation Paid to Certain Federal Employees.— (1) In general.— Section 111 of title 4, United States Code, is amended— (A) by inserting “(a) General Rule.—” before “The United States” the first place it appears; and (B) by adding at the end the following: “(b) Treatment of Certain Federal Employees Employed at Federal Hydroelectric Facilities Located on the Columbia River.— Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility— “(1) which is owned by the United States; “(2) which is located on the Columbia River; and “(3) portions of which are within the States of Oregon and Washington,112 STAT. 2139 shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident. “(c) Treatment of Certain Federal Employees Employed at Federal Hydroelectric Facilities Located on the Missouri River.— Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility— “(1) which is owned by the United States; “(2) which is located on the Missouri River; and “(3) portions of which are within the States of South Dakota and Nebraska, shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident.”. (2) Effective date.— The amendment made by this subsection shall apply to pay and compensation paid after the date of the enactment of this Act.