Minnesota Legislature
SF 2798
as introduced - 88th Legislature (2013 - 2014) Posted on 03/20/2014 09:36am
Current Version - as introduced
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A bill for an act
relating to taxation; income; requiring update of a study; requiring the
commissioner of revenue to initiate negotiations for a reciprocity agreement;
amending Laws 2011, First Special Session chapter 7, article 1, sections 9; 11; 12.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 2011, First Special Session chapter 7, article 1, section 9, is amended
to read:
Sec. 9. INCOME TAX RECIPROCITY BENCHMARK STUDY.
(a) The Department of Revenue, in conjunction with the Wisconsin Department of
Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study to
determine at least the following:
(1) the number of residents of each state who earn income from personal services in
the other state;
(2) the total amount of income earned by residents of each state who earn income
from personal services in the other state; and
(3) the change in tax revenue in 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.
(b) The study must use information obtained from each state's income tax returns for
tax year deleted text begin 2011deleted text end new text begin 2013new text end , and from any other source of information the departments determine
is necessary to complete the study.
(c) No later than March 1, deleted text begin 2013deleted text end new text begin 2015new text end , 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, in
compliance with Minnesota Statutes, sections 3.195 and 3.197.
(d) The department shall conduct the study only if the commissioner of revenue
receives notice from the secretary of revenue that the Wisconsin Department of Revenue
will fully participate in the study.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Laws 2011, First Special Session chapter 7, article 1, section 11, is amended to
read:
Sec. 11. NEW RECIPROCITY AGREEMENT WITH WISCONSIN.
(a) The commissioner of revenue shall initiate negotiations with the secretary of
revenue of Wisconsin, with the objective of entering into an income tax reciprocity
agreement effective for tax years beginning after December 31, deleted text begin 2011deleted text end new text begin 2013, wherein
Minnesota and Wisconsin must assume equal shares of the amount resulting from any
discrepancy in the amount determined under section 9, paragraph (a), clause (3)new text end .
(b) At least 30 days before entering a final income tax reciprocity agreement with
Wisconsin, the commissioner of revenue shall provide a copy of the proposed agreement
and any supporting documentation, including an estimate of the impact of the agreement
on state revenues, to the chairs and ranking minority members of the committees of the
house of representatives and senate with jurisdiction over taxes. The commissioner shall
consider any comments on the proposed agreement provided by the chairs or ranking
minority members.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Laws 2011, First Special Session chapter 7, article 1, section 12, is amended to
read:
Sec. 12. APPROPRIATIONS.
deleted text begin $291,000deleted text end new text begin $......new text end in fiscal year deleted text begin 2012deleted text end new text begin 2014new text end and deleted text begin $314,000deleted text end new text begin $......new text end in fiscal year deleted text begin 2013deleted text end new text begin 2015
new text end are appropriated from the general fund to the commissioner of revenue for the income
reciprocity benchmark study required under section 9. The appropriations under this
section are onetime and are not added to the agency's base budget.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end