2007 Minnesota Statutes

290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
(a) The compensation received for the performance of personal or professional services
within this state by an individual whose residence, place of abode, and place customarily returned
to at least once a month is in another state, shall be excluded from gross income to the extent
such compensation is subject to an income tax imposed by the state of residence; provided that
such state allows a similar exclusion of compensation received by residents of Minnesota for
services performed therein.
(b) When it is deemed to be in the best interests of the people of this state, the commissioner
may determine that the provisions of paragraph (a) shall not apply. As long as the provisions of
paragraph (a) apply between Minnesota and Wisconsin, the provisions of paragraph (a) shall
apply to any individual who is domiciled in Wisconsin.
(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents
which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax on
Wisconsin residents which would have been paid Minnesota without paragraph (a), or vice versa,
then the state with the net revenue loss resulting from paragraph (a) shall receive from the other
state the amount of such loss. This provision shall be effective for all years beginning after
December 31, 1972. The data used for computing the loss to either state shall be determined on or
before September 30 of the year following the close of the previous calendar year.
(d) Interest is payable on all amounts calculated under paragraph (c) relating to taxable
years beginning after December 31, 2000. Interest accrues from July 1 of the taxable year. The
commissioner of revenue is authorized to enter into agreements with the state of Wisconsin
specifying the reciprocity payment due date, conditions constituting delinquency, interest rates,
and a method for computing interest due.
(e) If an agreement cannot be reached as to the amount of the loss, the commissioner of
revenue and the taxing official of the state of Wisconsin shall each appoint a member of a board of
arbitration and these members shall appoint the third member of the board. The board shall select
one of its members as chair. Such board may administer oaths, take testimony, subpoena witnesses,
and require their attendance, require the production of books, papers and documents, and hold
hearings at such places as are deemed necessary. The board shall then make a determination as to
the amount to be paid the other state which determination shall be final and conclusive.
(f) The commissioner may furnish copies of returns, reports, or other information to the
taxing official of the state of Wisconsin, a member of the board of arbitration, or a consultant
under joint contract with the states of Minnesota and Wisconsin for the purpose of making a
determination as to the amount to be paid the other state under the provisions of this section. Prior
to the release of any information under the provisions of this section, the person to whom the
information is to be released shall sign an agreement which provides that the person will protect
the confidentiality of the returns and information revealed thereby to the extent that it is protected
under the laws of the state of Minnesota.
History: 1941 c 429; 1943 c 656 s 19; 1959 c 10 s 1; 1961 c 213 art 3 s 1; 1967 c 42 s 1;
1973 c 582 s 3; 1973 c 650 art 6 s 1; 1977 c 387 s 1; 1977 c 423 art 1 s 7; 1979 c 303 art 1 s
13; 1980 c 607 art 1 s 9; 1981 c 178 s 25; 1982 c 523 art 1 s 12; art 28 s 1; 1983 c 15 s 11;
1985 c 248 s 70; 1986 c 444; 1987 c 268 art 1 s 48; 1988 c 719 art 1 s 11; 1989 c 184 art 2
s 17; 2002 c 377 art 1 s 2