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Minnesota Legislature

Office of the Revisor of Statutes

HF 3159

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/11/2002

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to taxation; eliminating the authority of the 
  1.3             commissioner of revenue to terminate income tax 
  1.4             reciprocity; amending Minnesota Statutes 2000, section 
  1.5             290.081. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 290.081, is 
  1.8   amended to read: 
  1.9      290.081 [INCOME OF NONRESIDENTS, RECIPROCITY.] 
  1.10     (a) The compensation received for the performance of 
  1.11  personal or professional services within this state by an 
  1.12  individual whose residence, place of abode, and place 
  1.13  customarily returned to at least once a month is in another 
  1.14  state, shall be excluded from gross income to the extent such 
  1.15  compensation is subject to an income tax imposed by the state of 
  1.16  residence; provided that such state allows a similar exclusion 
  1.17  of compensation received by residents of Minnesota for services 
  1.18  performed therein. 
  1.19     (b) When it is deemed to be in the best interests of the 
  1.20  people of this state, the commissioner may determine that the 
  1.21  provisions of clause (a) shall not apply.  As long as the 
  1.22  provisions of clause (a) apply between Minnesota and Wisconsin, 
  1.23  the provisions of clause (a) shall apply to any individual who 
  1.24  is domiciled in Wisconsin.  
  1.25     (c) For the purposes of clause (a), whenever the Wisconsin 
  2.1   tax on Minnesota residents which would have been paid Wisconsin 
  2.2   without clause (a) exceeds the Minnesota tax on Wisconsin 
  2.3   residents which would have been paid Minnesota without clause 
  2.4   (a), or vice versa, then the state with the net revenue loss 
  2.5   resulting from clause (a) shall receive from the other state the 
  2.6   amount of such loss.  This provision shall be effective for all 
  2.7   years beginning after December 31, 1972.  The data used for 
  2.8   computing the loss to either state shall be determined on or 
  2.9   before September 30 of the year following the close of the 
  2.10  previous calendar year. 
  2.11     Interest shall be payable on all delinquent balances 
  2.12  relating to taxable years beginning after December 31, 1977.  
  2.13  The commissioner of revenue is authorized to enter into 
  2.14  agreements with the state of Wisconsin specifying the 
  2.15  reciprocity payment due date, conditions constituting 
  2.16  delinquency, interest rates, and a method for computing interest 
  2.17  due on any delinquent amounts. 
  2.18     If an agreement cannot be reached as to the amount of the 
  2.19  loss, the commissioner of revenue and the taxing official of the 
  2.20  state of Wisconsin shall each appoint a member of a board of 
  2.21  arbitration and these members shall appoint the third member of 
  2.22  the board.  The board shall select one of its members as chair.  
  2.23  Such board may administer oaths, take testimony, subpoena 
  2.24  witnesses, and require their attendance, require the production 
  2.25  of books, papers and documents, and hold hearings at such places 
  2.26  as are deemed necessary.  The board shall then make a 
  2.27  determination as to the amount to be paid the other state which 
  2.28  determination shall be final and conclusive. 
  2.29     The commissioner may furnish copies of returns, reports, or 
  2.30  other information to the taxing official of the state of 
  2.31  Wisconsin, a member of the board of arbitration, or a consultant 
  2.32  under joint contract with the states of Minnesota and Wisconsin 
  2.33  for the purpose of making a determination as to the amount to be 
  2.34  paid the other state under the provisions of this section.  
  2.35  Prior to the release of any information under the provisions of 
  2.36  this section, the person to whom the information is to be 
  3.1   released shall sign an agreement which provides that the person 
  3.2   will protect the confidentiality of the returns and information 
  3.3   revealed thereby to the extent that it is protected under the 
  3.4   laws of the state of Minnesota. 
  3.5      [EFFECTIVE DATE.] This section is effective the day 
  3.6   following final enactment.