CHAPTER NO. 1013

HOUSE BILL NO. 2607

By Representatives McDaniel, Godsey, Wood, Sharp, Mike Walker, Scroggs, Sargent, Hargett, Mumpower, Pleasant, Dunn, Patton, Ford, Davis

Substituted for: Senate Bill No. 2199

By Senator Fowler

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 2, relative to income taxation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 67-2-104, is amended by adding the following new subsections:

( ) Nothing contained in this chapter shall be construed or held to authorize the levy of any tax on earnings or distributions from an education Individual Retirement Account as defined in Section 213 of Public Law 105-34, so long as such earnings or distributions were not subject to federal income tax.

( ) Nothing contained in this chapter shall be construed or held to authorize the levy of any tax on earnings or distributions from a Roth IRA as defined in Section 302 of Public Law 105-34, so long as such earnings or distributions are not subject to federal income tax.

SECTION 2. The provisions of this act shall take effect on July 1, 1998, the public welfare requiring it.

PASSED: April 29, 1998

APPROVED this 18th day of May 1998