1.1.................... moves to amend H.F. No. 820 as follows:
1.2Delete everything after the enacting clause and insert:
1.3 "Section 1. Minnesota Statutes 2010, section 290.081, is amended to read:
1.4290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
1.5 Subdivision 1. Reciprocity with other states. (a) The compensation received for
1.6the performance of personal or professional services within this state by an individual
1.7whose residence, place of abode, and place customarily returned to at least once a month
1.8is in another state, shall be excluded from gross income to the extent such compensation is
1.9subject to an income tax imposed by the state of residence; provided that such state allows
1.10a similar exclusion of compensation received by residents of Minnesota for services
1.11performed therein.
1.12(b)
When it is deemed to be in the best interests of the people of this state, the
1.13commissioner may determine that the provisions of paragraph (a) shall not apply. As long
1.14as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
1.15of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
1.16(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota
1.17residents which would have been paid Wisconsin without paragraph (a) exceeds the
1.18Minnesota tax on Wisconsin residents which would have been paid Minnesota without
1.19paragraph (a), or vice versa, then the state with the net revenue loss resulting from
1.20paragraph (a) must be compensated by the other state as provided in the agreement under
1.21paragraph (d). This provision shall be effective for all years beginning after December 31,
1.221972. The data used for computing the loss to either state shall be determined on or before
1.23September 30 of the year following the close of the previous calendar year.
1.24(d) Interest is payable on all amounts calculated under paragraph (c) relating to
1.25taxable years beginning after December 31, 2000
and before January 1, 2010. Interest
1.26accrues from July 1 of the taxable year.
2.1(e) The
commissioner of revenue is authorized to enter into agreements reciprocity
2.2agreement with the state of Wisconsin
specifying must specify the compensation required
2.3under paragraph (b),
the one or more reciprocity payment due
date, dates for the revenue
2.4loss relating to each taxable year, with one or more estimated payment due dates in the
2.5same fiscal year in which the revenue loss occurred, and a final payment in the following
2.6fiscal year, conditions constituting delinquency, interest rates, and a method for computing
2.7interest due.
Interest is payable from July 1 of the taxable year on final payments made in
2.8the following fiscal year. Calculation of compensation under the agreement must specify
2.9if the revenue loss is determined before or after the allowance of each state's credit for
2.10taxes paid to the other state.
2.11(e) (f) If an agreement cannot be reached as to the amount of the loss, the
2.12commissioner of revenue and the taxing official of the state of Wisconsin shall each
2.13appoint a member of a board of arbitration and these members shall appoint the third
2.14member of the board. The board shall select one of its members as chair. Such board may
2.15administer oaths, take testimony, subpoena witnesses, and require their attendance, require
2.16the production of books, papers and documents, and hold hearings at such places as are
2.17deemed necessary. The board shall then make a determination as to the amount to be paid
2.18the other state which determination shall be final and conclusive.
2.19(f) (g) The commissioner may furnish copies of returns, reports, or other information
2.20to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
2.21consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
2.22of making a determination as to the amount to be paid the other state under the provisions
2.23of this section. Prior to the release of any information under the provisions of this section,
2.24the person to whom the information is to be released shall sign an agreement which
2.25provides that the person will protect the confidentiality of the returns and information
2.26revealed thereby to the extent that it is protected under the laws of the state of Minnesota.
2.27(h) Any reciprocity agreement entered into under this section continues in effect
2.28until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify
2.29the timing or method of calculating the state payments to be made under the agreement,
2.30consistent with the requirements of paragraphs (c) and (e), but may not terminate the
2.31agreement.
2.32 Subd. 2. New reciprocity agreement with Wisconsin. The commissioner of
2.33revenue is directed to initiate negotiations with the secretary of revenue of Wisconsin,
2.34with the objective of entering into an income tax reciprocity agreement effective for tax
2.35years beginning after December 31, 2011. The agreement must satisfy the conditions of
2.36subdivision 1, with one or more estimated payment due dates and a final payment due
3.1date specified so that the state with a net revenue loss as a result of the agreement receives
3.2estimated payments from the other state, in the same fiscal year as that in which the net
3.3revenue loss occurred and a final payment with interest in the following fiscal year.
3.4EFFECTIVE DATE.Subdivision 2 is effective the day following final enactment.
3.5The changes to subdivision 1 are effective for taxable years beginning after December 31
3.6of the year of the agreement, contingent upon agreement from the state of Wisconsin to a
3.7reciprocity arrangement in which estimated payments are made in the same fiscal year in
3.8which a change in revenue occurs, and a final payment is made in the following fiscal year."
3.9Renumber the sections in sequence and correct the internal references
3.10Amend the title accordingly