50 U.S.C. § 4001 — Residence for tax purposes

(a) Residence or domicile. (1) In general. A servicemember^* does not gain or lose a residence or domicile for taxes on the person, personal property, or income merely because the servicemember is present or absent in a United States tax jurisdiction solely under military orders. (2) Spouses. A spouse likewise does not gain or lose a residence or domicile for those taxes merely because the spouse is present or absent in a tax jurisdiction solely to be with the servicemember under the servicemember’s military orders. (3) Election. For any tax year of the marriage, the servicemember and spouse may elect, regardless of when they married, to use for tax purposes the servicemember’s residence or domicile, the spouse’s residence or domicile, or the servicemember’s permanent duty station.

(b) Military service^* compensation. Military compensation is not treated as income for services performed in, or from sources within, a United States tax jurisdiction where the servicemember is serving under military orders if the servicemember is not a resident or domiciliary there.

(c) Income of a military spouse. A spouse’s service income is not treated as income for services performed in, or from sources within, the jurisdiction where it is earned if the spouse is not a resident or domiciliary there because the spouse is there solely to be with the servicemember serving under military orders.

(d) Personal property. (1) A servicemember’s or spouse’s personal property is not treated as located, present, or taxable in the jurisdiction where the servicemember serves under military orders. (2) This applies to personal property or its use in any jurisdiction other than the servicemember’s or spouse’s domicile or residence. (3) It does not prevent taxation of personal property used in or arising from a trade or business when the jurisdiction has authority to tax it. (4) Eligibility for this relief does not depend on whether personal-property taxes are paid to the State^* of domicile.

(e) Increase of tax liability. A jurisdiction may not use a nonresident servicemember’s military compensation to increase the tax on other income of that servicemember or spouse that the jurisdiction taxes.

(f) Federal Indian reservations. An Indian servicemember whose legal residence or domicile is a Federal Indian reservation is taxed under the laws for Federal Indian reservations, not the State where the reservation lies.

(g) Definitions. (1) “Personal property” means intangible and tangible property, including motor vehicles. (2) “Taxation” includes licenses, fees, and excises on motor vehicles or their use when the servicemember pays them in the servicemember’s State of domicile or residence. (3) “Tax jurisdiction” means a State or a political subdivision of a State. This section does not otherwise define the quoted terms.