LRB-4488/1
MES:kjf:rs
2009 - 2010 LEGISLATURE
March 10, 2010 - Introduced by Senators Kreitlow, Harsdorf, Kapanke and
Vinehout, cosponsored by Representatives Hraychuck, Milroy, Rhoades,
Richards, Murtha, Danou, Suder, Ballweg, Vos, Zigmunt, Smith, Townsend,
Shilling, Ziegelbauer, Brooks, Nerison, Hubler, Knodl and Dexter.
Referred to Committee on Health, Health Insurance, Privacy, Property Tax
Relief, and Revenue.
SB608,1,2
1An Act relating to: requiring the Department of Revenue to study income tax
2reciprocity with the state of Minnesota.
Analysis by the Legislative Reference Bureau
This bill requires the Department of Revenue, in conjunction with the
Minnesota Department of Revenue, to conduct a study on the effects of resuming
income tax reciprocity between Wisconsin and Minnesota. The study must
determine the number of residents in each state who earn income in the other state,
the total amount of income earned in each state by such taxpayers, and the amount
of revenue that would be foregone by each state if reciprocity were to be reinstituted.
Under reciprocity, taxpayers are required to pay taxes only in their state of residence
on income earned in the other state.
The study is to be based on income tax data for tax year 2010, and any other
information each Department of Revenue determines is necessary to complete the
study. The results of the study must be submitted to the legislatures and governors
of each state no later than December 31, 2011.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB608,2,3
1(1)
Department of revenue study. (a) The department of revenue, in
2conjunction with the Minnesota department of revenue, shall conduct a study to
3determine at least all of the following:
SB608,2,5
41. The number of residents of each state who earn income from personal
5services in the other state.
SB608,2,7
62. The total amount of income earned in each state by the taxpayers described
7in subd. 1.
SB608,2,11
83. The amount of tax revenue that would be foregone by each state if an income
9tax reciprocity arrangement were resumed between the 2 states under which the
10taxpayers were required to pay income taxes on such income only in their state of
11residence.
SB608,2,1412
(b) The study shall be conducted as soon as practicable, using information
13obtained from each state's income tax returns for tax year 2010 and from any other
14source of information the departments determine is necessary to complete the study.
SB608,2,1815
(c) No later than December 31, 2011, the department of revenue shall submit
16a report containing the results of the study to the legislature under section 13.172
17(2) of the statutes, the joint committee on finance, the governor, and the governor and
18legislature of Minnesota.
