To amend title 4, United States Code, to limit the authority of a State to tax a resident of another State on income derived from Federal employment performed on a Federal area located within the borders of two or more contiguous States.

Prohibits a State from taxing the pay or compensation of a Federal employee if: (1) the employee is a resident of another State; (2) the pay or compensation is derived from Federal employment in a Federal area under the control of the uniformed services located within the borders of both States concerned; and (3) there is no reciprocal tax agreement between the States involving the taxation of nonresidents.