1.1.................... moves to amend H.F. No. 3370 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. INCOME TAX RECIPROCITY BENCHMARK STUDY.
1.4    Subdivision 1. Study parameters. (a) The Department of Revenue, in conjunction
1.5with the Wisconsin Department of Revenue, must conduct a study of individuals
1.6who are residents of Minnesota and earn income for the performance of personal or
1.7professional services in Wisconsin, or who are residents of Wisconsin and earn income
1.8for the performance of personal or professional services in Minnesota. The purpose of
1.9the study is to develop an estimate of net compensation payable from one state to the
1.10other for the income tax revenue foregone as a result of the two states entering into a
1.11new income tax reciprocity agreement, which would take effect in tax year 2012, with
1.12compensation payments from one state to the other made in the same fiscal year in which
1.13the net revenue loss resulting from reciprocity occurs. The study must be conducted as
1.14soon as practicable, using information obtained from each state's income tax returns for
1.15tax year 2010, and from any other source of information the departments determine is
1.16necessary to complete the study.
1.17(b) The study must include at least the following:
1.18(1) the number of residents of each state who earn income from the performance of
1.19personal or professional services in the other state;
1.20(2) the total amount of income earned by residents of each state who earn income
1.21from the performance of professional or personal services in the other state;
1.22(3) the amount of tax revenue that would be gained or foregone by each state if an
1.23income tax reciprocity agreement were resumed between the two states under which the
1.24taxpayers were required to pay income taxes on the income only in their state of residence
1.25beginning in tax year 2012;
2.1(4) a calculation of compensation payable from one state to the other that takes into
2.2account the credit each state allows for taxes paid to other states; and
2.3(5) a methodology for using the base year results determined by the study to project
2.4the amount of compensation payments in future years.
2.5    Subd. 2. Reports. (a) No later than July 15, 2011, the commissioner of revenue
2.6must report to the governor and to the chairs and ranking minority members of the
2.7legislative committees having jurisdiction over taxes, in compliance with Minnesota
2.8Statutes, sections 3.195 and 3.197. The report must include:
2.9(1) the status of negotiations between the states concerning a reciprocity agreement
2.10to commence for tax year 2012;
2.11(2) a description of data elements being captured for the study from 2010 income
2.12tax returns;
2.13(3) preliminary totals for the number of residents of each state who earn income
2.14from the performance of personal or professional services in the other state and the
2.15amount of that income; and
2.16(4) any other preliminary conclusions responsive to the requirements in subdivision
2.171.
2.18(b) No later than September 15, 2011, the commissioner of revenue must report to
2.19the governor and to the chairs and ranking minority members of the legislative committees
2.20having jurisdiction over taxes in compliance with Minnesota Statutes, sections 3.195 and
2.213.197. The report must include an update of information provided in paragraph (a).
2.22(c) No later than March 1, 2012, the commissioner of revenue must submit a final
2.23report to the governor and to the chairs and ranking minority members of the legislative
2.24committees having jurisdiction over taxes, in compliance with Minnesota Statutes,
2.25sections 3.195 and 3.197, on the final results of the study and the status of a reciprocity
2.26agreement between the two states."
2.27Amend the title accordingly