596
Opinion of the Court
Justice White delivered the opinion of the Court.
The State of Kansas taxes the benefits received from the United States by military retirees but does not tax the benefits received by retired state and local government employees. Kan. Stat. Ann. § 79-3201 et seq. (1989).1 The issue before us is whether the tax imposed on the military retirees is inconsistent with 4 U. S. C. § 111, which provides:
"The United States consents to the taxation of pay or compensation for personal service as an officer or employee of the United States, a territory or possession or political subdivision thereof, the government of the District of Columbia, or an agency or instrumentality of one or more of the foregoing, by a duly constituted taxing authority having jurisdiction, if the taxation does not discriminate against the officer or employee because of the source of the pay or compensation."
Shortly after our decision in Davis v. Michigan Dept. of Treasury, 489 U. S. 803 (1989), which invalidated under § 111 the Michigan income tax imposed on federal civil service re-1 As the Kansas Supreme Court explained, to arrive at the adjusted gross income of a taxpayer under the Kansas Income Tax Act, the starting point is the adjusted gross income under the federal Internal Revenue Code, which includes retirement benefits received by retired military officials and state and local government retirees. 249 Kan. 186, 190-191, 815 P. 2d 46, 49-50 (1991). As relevant for present purposes, in calculating Kansas' adjusted gross income, the retirement benefits of state and local governments are deducted and are exempt from taxation. See Kan. Stat. Ann. § 79-32,117(c)(ii) (Supp. 1990); § 74-4923(b) (Supp. 1990); see also 249 Kan., at 190-191, 815 P. 2d, at 49-50 (listing classes exempt from state taxation). Benefits received under the Federal Civil Service Retirement System and by retired railroad employees are also exempt. Kan. Stat. Ann. §§ 79-32,117(c)(vii) and (viii) (Supp. 1990). Not deducted and hence taxable are benefits received by retired military personnel, certain Central Intelligence Agency employees, officials serving in the National Oceanic and Atmospheric Association or the Public Health Service, and retired federal judges. See 249 Kan., at 205, 815 P. 2d, at 58.
Page: Index Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 NextLast modified: October 4, 2007