Bill Text: MN SF802 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Wisconsin tax reciprocity agreement negotiation requirement
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-03-14 - Referred to Taxes [SF802 Detail]
Download: Minnesota-2011-SF802-Introduced.html
1.2relating to taxation; individual income; directing commissioner to negotiate a
1.3reciprocity agreement with state of Wisconsin and permitting its termination only
1.4by law;amending Minnesota Statutes 2010, section 290.081.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290.081, is amended to read:
1.7290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
1.8 Subdivision 1. Reciprocity with other states. (a) The compensation received for
1.9the performance of personal or professional services within this state by an individual
1.10whose residence, place of abode, and place customarily returned to at least once a month
1.11is in another state, shall be excluded from gross income to the extent such compensation is
1.12subject to an income tax imposed by the state of residence; provided that such state allows
1.13a similar exclusion of compensation received by residents of Minnesota for services
1.14performed therein.
1.15(b)When it is deemed to be in the best interests of the people of this state, the
1.16commissioner may determine that the provisions of paragraph (a) shall not apply. As long
1.17as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
1.18of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
1.19(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota
1.20residents which would have been paid Wisconsin without paragraph (a) exceeds the
1.21Minnesota tax on Wisconsin residents which would have been paid Minnesota without
1.22paragraph (a), or vice versa, then the state with the net revenue loss resulting from
1.23paragraph (a) must be compensated by the other state as provided in the agreement under
1.24paragraph (d). This provision shall be effective for all years beginning after December 31,
2.11972. The data used for computing the loss to either state shall be determined on or before
2.2September 30 of the year following the close of the previous calendar year.
2.3(d) Interest is payable on all amounts calculated under paragraph (c) relating to
2.4taxable years beginning after December 31, 2000 and before January 1, 2010. Interest
2.5accrues from July 1 of the taxable year.
2.6(e) Thecommissioner of revenue is authorized to enter into agreements reciprocity
2.7agreement with the state of Wisconsinspecifying must specify the compensation required
2.8under paragraph (b),the one or more reciprocity payment due date, dates for the revenue
2.9loss relating to each taxable year, with the payment due dates in the same fiscal years in
2.10which the revenue loss occurred, conditions constituting delinquency, interest rates, and a
2.11method for computing interest due. Calculation of compensation under the agreement
2.12must specify if the revenue loss is determined before or after the allowance of each state's
2.13credit for taxes paid to the other state.
2.14(e) (f) If an agreement cannot be reached as to the amount of the loss, the
2.15commissioner of revenue and the taxing official of the state of Wisconsin shall each
2.16appoint a member of a board of arbitration and these members shall appoint the third
2.17member of the board. The board shall select one of its members as chair. Such board may
2.18administer oaths, take testimony, subpoena witnesses, and require their attendance, require
2.19the production of books, papers and documents, and hold hearings at such places as are
2.20deemed necessary. The board shall then make a determination as to the amount to be paid
2.21the other state which determination shall be final and conclusive.
2.22(f) (g) The commissioner may furnish copies of returns, reports, or other information
2.23to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
2.24consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
2.25of making a determination as to the amount to be paid the other state under the provisions
2.26of this section. Prior to the release of any information under the provisions of this section,
2.27the person to whom the information is to be released shall sign an agreement which
2.28provides that the person will protect the confidentiality of the returns and information
2.29revealed thereby to the extent that it is protected under the laws of the state of Minnesota.
2.30(h) Any reciprocity agreement entered into under this section continues in effect
2.31until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify
2.32the timing or method of calculating the state payments to be made under the agreement,
2.33consistent with the requirements of paragraphs (c) and (d), but may not terminate the
2.34agreement.
2.35 Subd. 2. New reciprocity agreement with Wisconsin. The commissioner of
2.36revenue is directed to initiate negotiations with the secretary of revenue of Wisconsin,
3.1with the objective of entering into an income tax reciprocity agreement effective for tax
3.2years beginning after December 31, 2011. The agreement must satisfy the conditions of
3.3subdivision 1, with one or more payment due dates specified so that the state with a net
3.4revenue loss as a result of the agreement receives compensation from the other state, in
3.5the form of estimated and final payments, in the same fiscal year as that in which the
3.6net revenue loss occurred.
3.7EFFECTIVE DATE.Subdivision 2 is effective the day following final enactment.
3.8The changes to subdivision 1 are effective contingent upon agreement from the state of
3.9Wisconsin to a reciprocity arrangement in which payments are made in the same fiscal
3.10year in which net revenue losses occur, for taxable years beginning after December 31 of
3.11the year of the agreement.
1.3reciprocity agreement with state of Wisconsin and permitting its termination only
1.4by law;amending Minnesota Statutes 2010, section 290.081.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290.081, is amended to read:
1.7290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
1.8 Subdivision 1. Reciprocity with other states. (a) The compensation received for
1.9the performance of personal or professional services within this state by an individual
1.10whose residence, place of abode, and place customarily returned to at least once a month
1.11is in another state, shall be excluded from gross income to the extent such compensation is
1.12subject to an income tax imposed by the state of residence; provided that such state allows
1.13a similar exclusion of compensation received by residents of Minnesota for services
1.14performed therein.
1.15(b)
1.16
1.17as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
1.18of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
1.19(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota
1.20residents which would have been paid Wisconsin without paragraph (a) exceeds the
1.21Minnesota tax on Wisconsin residents which would have been paid Minnesota without
1.22paragraph (a), or vice versa, then the state with the net revenue loss resulting from
1.23paragraph (a) must be compensated by the other state as provided in the agreement under
1.24paragraph (d). This provision shall be effective for all years beginning after December 31,
2.11972. The data used for computing the loss to either state shall be determined on or before
2.2September 30 of the year following the close of the previous calendar year.
2.3(d) Interest is payable on all amounts calculated under paragraph (c) relating to
2.4taxable years beginning after December 31, 2000 and before January 1, 2010. Interest
2.5accrues from July 1 of the taxable year.
2.6(e) The
2.7agreement with the state of Wisconsin
2.8under paragraph (b),
2.9loss relating to each taxable year, with the payment due dates in the same fiscal years in
2.10which the revenue loss occurred, conditions constituting delinquency, interest rates, and a
2.11method for computing interest due. Calculation of compensation under the agreement
2.12must specify if the revenue loss is determined before or after the allowance of each state's
2.13credit for taxes paid to the other state.
2.14
2.15commissioner of revenue and the taxing official of the state of Wisconsin shall each
2.16appoint a member of a board of arbitration and these members shall appoint the third
2.17member of the board. The board shall select one of its members as chair. Such board may
2.18administer oaths, take testimony, subpoena witnesses, and require their attendance, require
2.19the production of books, papers and documents, and hold hearings at such places as are
2.20deemed necessary. The board shall then make a determination as to the amount to be paid
2.21the other state which determination shall be final and conclusive.
2.22
2.23to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
2.24consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
2.25of making a determination as to the amount to be paid the other state under the provisions
2.26of this section. Prior to the release of any information under the provisions of this section,
2.27the person to whom the information is to be released shall sign an agreement which
2.28provides that the person will protect the confidentiality of the returns and information
2.29revealed thereby to the extent that it is protected under the laws of the state of Minnesota.
2.30(h) Any reciprocity agreement entered into under this section continues in effect
2.31until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify
2.32the timing or method of calculating the state payments to be made under the agreement,
2.33consistent with the requirements of paragraphs (c) and (d), but may not terminate the
2.34agreement.
2.35 Subd. 2. New reciprocity agreement with Wisconsin. The commissioner of
2.36revenue is directed to initiate negotiations with the secretary of revenue of Wisconsin,
3.1with the objective of entering into an income tax reciprocity agreement effective for tax
3.2years beginning after December 31, 2011. The agreement must satisfy the conditions of
3.3subdivision 1, with one or more payment due dates specified so that the state with a net
3.4revenue loss as a result of the agreement receives compensation from the other state, in
3.5the form of estimated and final payments, in the same fiscal year as that in which the
3.6net revenue loss occurred.
3.7EFFECTIVE DATE.Subdivision 2 is effective the day following final enactment.
3.8The changes to subdivision 1 are effective contingent upon agreement from the state of
3.9Wisconsin to a reciprocity arrangement in which payments are made in the same fiscal
3.10year in which net revenue losses occur, for taxable years beginning after December 31 of
3.11the year of the agreement.
