Page:United States Statutes at Large Volume 86.djvu/983

 86 STAT. ]

PUBLIC LAW 92-512-OCT. 20, 1972

than the aggregate value of all assets theretofore contributed to the trust, such trust shall be treated as created on such day. For purposes of this subparagraph, the value of any asset taken into account shall be its fair market value on the day it is contributed to the trust. !";:-•: f-j. • " (ii) The principal contributor to the trust is the individual who contributed more (in value) of the assets contributed on the date of the creation of the trust (determined after applying clause (i)) than any other individual.  -' ' "(iii) If 'the foregoing rules would create more than -•'i =, • '. one State of residence (or no State of residence) for a trust, such trust shall be treated as a resident of the '; '• State determined under similar principles prescribed by the Secretary or his delegate by regulations. '' (4) LIABILITY FOR TAX ON CHANGE OF RESIDENCE.—With respect . to a taxable year, in the case of an individual (other than an individual who comes into being or ceases to exist) who becomes a resident, or ceases to be a resident, of the State, his liability to such State for the resident tax is determined by multiplying the amount which would be his liability for tax (after the nonrefundable credits allowed against such tax) if he had been a resident of such State for the entire taxable year by a fraction the numerator of which is the number of days he was a resident of such State and the denominator of which is the total number of days in the taxable year. I n the case of an individual who is treated as a resident of a State with respect to a taxable year by reason of paragraph (1)(B), the preceding sentence shall be applied by substituting days of domicile for days of residence. " (5) CURRENT COLLECTION OF TAX.—In applying chapter 24

(relating to witholding) and section 6015 and other provisions relating to declarations of estimated income (and amendments thereto) — " (A) in the case of a resident tax, an individual is treated as subject to the tax if he reasonably expects to reside in the State for 30 days or more or if such individual is a resident of the State (within the meaning of paragraph (1), (2), or (3)), and " (B) in the case of a nonresident tax, an individual is treated as subject to the tax if he reasonably expects to receive wage and other business income (within the meaning of subsection (d)(2)) for 30 days or more during the taxable year. ''(f) ADDITIONAL EEQIJIREMENTS.—A tax imposed by a State shall me^t the requirements of this subsection only if—

69 Stat. 6 1 6. 26 USC 3401.

68A Stat. 737 85 Stat. 517.

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" (1) STATE AGREEMENT MUST BE I N EFFECT FOR PERIOD CON-

CERNED.—A State agreement entered into under section 6363 is in effect with respect to such tax for the taxable period in question. " (2) STATE LAWS MUST CONTAIN CERTAIN PROVISIONS.—Under

the laws of such State— " (A) the provisions of this subchapter (and of the regulations prescribed thereunder) as in effect from time to time .Q are made applicable for the period for which the State agreement is in effect, and " (B) any change made by the State in the tax imposed by the State will not apply to taxable years beginning in any calendar year for which the State agreement is in effect unless such change is enacted before NoA^ember 1 of such calendar year.

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