Sponsor
Kevin Kiley
Representative · I-CA
Representative · I-CA
The bill protects people who live outside a state from retroactive wealth/asset taxation and improves predictability for movers, at the cost of limiting states' revenue options and imposing administrative burdens on state tax systems.
Nonresident taxpayers (people who live outside a state at enactment) would not be held liable for retroactive wealth/asset taxes tied to periods when they did not live in that state, creating clearer, fairer, and more predictable tax treatment for individuals who move.
State governments would have reduced ability to raise revenue from wealth- or asset-based taxes on people who move, which could shift tax burdens onto remaining residents or require higher taxes elsewhere.
States could face increased administrative complexity and costs to determine who was a resident on the enactment date and to separate pre-enactment versus post-enactment valuation periods for assets.
Based on analysis of 6 sections of legislative text.
Prohibits states from applying retroactive asset-value taxes to nonresidents for periods before the state law’s enactment when the individual did not reside in the state on that date.
Official title: To prohibit a State from imposing a retroactive tax on assets of nonresident individuals.
Introduced February 20, 2026 by Kevin Kiley · Last progress February 20, 2026
Prevents states from applying retroactive asset-value taxes to nonresidents for periods before the state law imposing the tax was enacted if the individual did not live in the state on the law’s enactment date. The ban covers taxes tied to the value of assets and takes effect January 1, 2026.