Bill Text: MN HF3096 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Income tax reciprocity benchmark study update required, and commissioner of revenue required to initiate negotiations for a reciprocity agreement.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2014-03-17 - Introduction and first reading, referred to Taxes [HF3096 Detail]
Download: Minnesota-2013-HF3096-Introduced.html
1.2relating to taxation; income; requiring update of a study; requiring the
1.3commissioner of revenue to initiate negotiations for a reciprocity agreement;
1.4amending Laws 2011, First Special Session chapter 7, article 1, sections 9; 11; 12.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Laws 2011, First Special Session chapter 7, article 1, section 9, is amended
1.7to read:
1.8 Sec. 9. INCOME TAX RECIPROCITY BENCHMARK STUDY.
1.9(a) The Department of Revenue, in conjunction with the Wisconsin Department of
1.10Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study to
1.11determine at least the following:
1.12(1) the number of residents of each state who earn income from personal services in
1.13the other state;
1.14(2) the total amount of income earned by residents of each state who earn income
1.15from personal services in the other state; and
1.16(3) the change in tax revenue in each state if an income tax reciprocity arrangement
1.17were resumed between the two states under which the taxpayers were required to pay
1.18income taxes on the income only in their state of residence.
1.19(b) The study must use information obtained from each state's income tax returns for
1.20tax year2011 2013, and from any other source of information the departments determine
1.21is necessary to complete the study.
1.22(c) No later than March 1,2013 2015, the Department of Revenue must submit a
1.23report containing the results of the study to the governor and to the chairs and ranking
2.1minority members of the legislative committees having jurisdiction over taxes, in
2.2compliance with Minnesota Statutes, sections3.195 and
3.197 .
2.3(d) The department shall conduct the study only if the commissioner of revenue
2.4receives notice from the secretary of revenue that the Wisconsin Department of Revenue
2.5will fully participate in the study.
2.6EFFECTIVE DATE.This section is effective the day following final enactment.
2.7 Sec. 2. Laws 2011, First Special Session chapter 7, article 1, section 11, is amended to
2.8read:
2.9 Sec. 11. NEW RECIPROCITY AGREEMENT WITH WISCONSIN.
2.10(a) The commissioner of revenue shall initiate negotiations with the secretary of
2.11revenue of Wisconsin, with the objective of entering into an income tax reciprocity
2.12agreement effective for tax years beginning after December 31,2011 2013, wherein
2.13Minnesota and Wisconsin must assume equal shares of the amount resulting from any
2.14discrepancy in the amount determined under section 9, paragraph (a), clause (3).
2.15(b) At least 30 days before entering a final income tax reciprocity agreement with
2.16Wisconsin, the commissioner of revenue shall provide a copy of the proposed agreement
2.17and any supporting documentation, including an estimate of the impact of the agreement
2.18on state revenues, to the chairs and ranking minority members of the committees of the
2.19house of representatives and senate with jurisdiction over taxes. The commissioner shall
2.20consider any comments on the proposed agreement provided by the chairs or ranking
2.21minority members.
2.22EFFECTIVE DATE.This section is effective the day following final enactment.
2.23 Sec. 3. Laws 2011, First Special Session chapter 7, article 1, section 12, is amended to
2.24read:
2.25 Sec. 12. APPROPRIATIONS.
2.26$291,000 $...... in fiscal year 2012 2014 and $314,000 $...... in fiscal year 2013 2015
2.27 are appropriated from the general fund to the commissioner of revenue for the income
2.28reciprocity benchmark study required under section 9. The appropriations under this
2.29section are onetime and are not added to the agency's base budget.
2.30EFFECTIVE DATE.This section is effective the day following final enactment.
1.3commissioner of revenue to initiate negotiations for a reciprocity agreement;
1.4amending Laws 2011, First Special Session chapter 7, article 1, sections 9; 11; 12.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Laws 2011, First Special Session chapter 7, article 1, section 9, is amended
1.7to read:
1.8 Sec. 9. INCOME TAX RECIPROCITY BENCHMARK STUDY.
1.9(a) The Department of Revenue, in conjunction with the Wisconsin Department of
1.10Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study to
1.11determine at least the following:
1.12(1) the number of residents of each state who earn income from personal services in
1.13the other state;
1.14(2) the total amount of income earned by residents of each state who earn income
1.15from personal services in the other state; and
1.16(3) the change in tax revenue in each state if an income tax reciprocity arrangement
1.17were resumed between the two states under which the taxpayers were required to pay
1.18income taxes on the income only in their state of residence.
1.19(b) The study must use information obtained from each state's income tax returns for
1.20tax year
1.21is necessary to complete the study.
1.22(c) No later than March 1,
1.23report containing the results of the study to the governor and to the chairs and ranking
2.1minority members of the legislative committees having jurisdiction over taxes, in
2.2compliance with Minnesota Statutes, sections
2.3(d) The department shall conduct the study only if the commissioner of revenue
2.4receives notice from the secretary of revenue that the Wisconsin Department of Revenue
2.5will fully participate in the study.
2.6EFFECTIVE DATE.This section is effective the day following final enactment.
2.7 Sec. 2. Laws 2011, First Special Session chapter 7, article 1, section 11, is amended to
2.8read:
2.9 Sec. 11. NEW RECIPROCITY AGREEMENT WITH WISCONSIN.
2.10(a) The commissioner of revenue shall initiate negotiations with the secretary of
2.11revenue of Wisconsin, with the objective of entering into an income tax reciprocity
2.12agreement effective for tax years beginning after December 31,
2.13Minnesota and Wisconsin must assume equal shares of the amount resulting from any
2.14discrepancy in the amount determined under section 9, paragraph (a), clause (3).
2.15(b) At least 30 days before entering a final income tax reciprocity agreement with
2.16Wisconsin, the commissioner of revenue shall provide a copy of the proposed agreement
2.17and any supporting documentation, including an estimate of the impact of the agreement
2.18on state revenues, to the chairs and ranking minority members of the committees of the
2.19house of representatives and senate with jurisdiction over taxes. The commissioner shall
2.20consider any comments on the proposed agreement provided by the chairs or ranking
2.21minority members.
2.22EFFECTIVE DATE.This section is effective the day following final enactment.
2.23 Sec. 3. Laws 2011, First Special Session chapter 7, article 1, section 12, is amended to
2.24read:
2.25 Sec. 12. APPROPRIATIONS.
2.26
2.27 are appropriated from the general fund to the commissioner of revenue for the income
2.28reciprocity benchmark study required under section 9. The appropriations under this
2.29section are onetime and are not added to the agency's base budget.
2.30EFFECTIVE DATE.This section is effective the day following final enactment.
