A bill to amend section 106 of title 4 of the United States Code relating to State taxation of the income of residents of another State.

Prohibits any State from levying or collecting any income tax on income received from transactions occurring or services performed within a Federal area by any person who does not reside within such Federal area or within the State wherein such Federal area is located and who commutes to such employment, unless such State provides to such person material and proportionate benefits and protection. (Adds 4 U.S.C. 106(c))