HF 701

as introduced - 87th Legislature (2011 - 2012) Posted on 02/24/2011 10:45am

A bill for an act
relating to taxation; requiring the Department of Revenue to conduct a study on
income tax reciprocity with Wisconsin; requiring a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin INCOME RECIPROCITY BENCHMARK STUDY.
new text end

new text begin (a) The Department of Revenue, in conjunction with the Wisconsin Department of
Revenue, must conduct a study to determine at least the following:
new text end

new text begin (1) the number of residents of each state who earn income from personal services in
the other state;
new text end

new text begin (2) the total amount of income earned by residents of each state who earn income
from personal services in the other state; and
new text end

new text begin (3) the amount of tax revenue that would be foregone by each state if an income tax
reciprocity arrangement were resumed between the two states under which the taxpayers
were required to pay income taxes on the income only in their state of residence.
new text end

new text begin (b) The study must be conducted as soon as practicable, using information obtained
from each state's income tax returns for tax year 2010, and from any other source of
information the departments determine is necessary to complete the study.
new text end

new text begin (c) No later than March 1, 2012, the Department of Revenue must submit a report
containing the results of the study to the governor and to the chairs and ranking minority
members of the legislative committees having jurisdiction over taxes.
new text end