Date of enactment: March 21, 2024
2023 Senate Bill 374 Date of publication*: March 22, 2024
2023 WISCONSIN ACT 147
AN ACT to amend 71.10 (7) (a) and 71.10 (7) (c); and to create 71.10 (7) (d) of the statutes; relating to: Wisconsin
and Minnesota income tax reciprocity.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1. 71.10 (7) (a) of the statutes is amended
to read:
71.10 (7) (a) For purposes of income tax reciprocity
reached with the state of Minnesota under s. 71.05 (2),
whenever the income taxes on residents of one state
which would have been paid to the 2nd state without reci-
procity exceed the income taxes on residents of the 2nd
state which would have been paid to the first state without
reciprocity, the state with the net revenue loss shall
receive from the other state the amount of the loss. Inter-
est shall be payable on all delinquent balances relating to
taxable years beginning after the first December 31, 1977
after the date identified in the notice under 2023 Wiscon-
sin Act .... (this act), section 4 (2). The secretary of rev-
enue may enter into agreements with the state of Minne-
sota specifying the reciprocity payment due date,
conditions constituting delinquency, interest rates and
the method of computing interest due on any delinquent
amounts.
SECTION 2. 71.10 (7) (c) of the statutes is amended
to read:
71.10 (7) (c) For taxable years beginning after the
first December 31, 2000 after the date identified in the
notice under 2023 Wisconsin Act .... (this act), section 4
(2), this state shall pay Minnesota interest on any reci-
procity payment that is due under this subsection. Inter-
est shall be calculated according to the Laws of Minne-
sota 2002 Chapter 377, or at another rate and under
another method of calculation that is agreed to by Minne-
sota and Wisconsin.
SECTION 3. 71.10 (7) (d) of the statutes is created to
read:
71.10 (7) (d) 1. No agreement that is entered into
under this subsection on or after the effective date of this
subdivision .... [LRB inserts date], may take effect unless
all of the following apply:
a. The agreement applies to wages, salaries, tips, and
commissions received as an employee by persons who
reside in this state or Minnesota for at least 183 days dur-
ing their taxable years and who return to their state of res-
idence at least once per month.
b. The agreement contains no expiration or termina-
tion date.
bm. The governor issues a written notice of approval
of the agreement no later than 90 days after being pre-
sented with the agreement under subd. 1m.
cm. The agreement may take effect under subd. 1s.
1m. As soon as possible after the department reaches
an agreement with the state of Minnesota, the department
shall present the agreement to the governor and submit a
copy of the agreement to the legislature under s. 13.172
(2).
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 147 2023 Senate Bill 374
1s. After the governor issues a written notice of
approval of the agreement under subd. 1. bm., the depart-
ment shall notify the joint committee on finance in writ-
ing of the agreement. The agreement may take effect if
within 14 working days of the notification the committee
does not schedule a meeting for the purpose of reviewing
the proposed agreement. If the committee schedules a
meeting for the purpose of reviewing the agreement, the
agreement may not take effect unless the committee
approves the agreement.
2. a. This state may not make a payment under an
agreement entered into under this subsection for any tax-
able year ending before the effective date of this subd. 2.
a. .... [LRB inserts date].
b. An agreement entered into under this subsection
may provide for making estimated payments during a
year and for a final payment for the year to be made after
computing the amount of the loss for the year as
described in par. (b).
3. An agreement entered into under this subsection
that takes effect on or after the effective date of this subdi-
vision .... [LRB inserts date], may not be revised unless
the department notifies the joint committee on finance in
writing of the proposed revised agreement. The pro-
posed revised agreement may take effect if within 14
working days of the notification the committee does not
schedule a meeting for the purpose of reviewing the pro-
posed revised agreement. If the committee schedules a
meeting for the purpose of reviewing the proposed
revised agreement, the proposed revised agreement may
not take effect unless the committee approves the pro-
posed revised agreement.
4. An agreement entered into under this subsection
may require that a study be conducted no more than once
every 5 years to obtain information necessary to deter-
mine payments under this subsection.
SECTION 4.0Nonstatutory provisions.
(1) DEPARTMENT OF REVENUE STUDY.
(a) In this subsection, “income from personal ser-
vices” means wages, salaries, tips, and commissions
received as an employee.
(b) The department of revenue, if agreed by the Min-
nesota department of revenue, shall conduct a study to
determine at least all of the following:
1. The number of residents of each state who earn
income from personal services in the other state, includ-
ing an assessment of population trends in the counties
along the border between the 2 states.
2. The total amount of income from personal services
earned in each state by the taxpayers described in subd.
1.
3. The amount of tax revenue that would be foregone
by each state if an income tax reciprocity agreement were
instituted between the 2 states under which the taxpayers
were required to pay income taxes on such income only
in their state of residence.
(c) The study under par. (b) shall be conducted as
soon as practicable, using information obtained from
each state’s income tax returns for taxable years 2020 and
2021 and from any other source of information the
departments determine is necessary to complete the
study.
(d) No later than December 31, 2024, the department
of revenue shall submit a report containing the results of
any study agreed to under par. (b) to the legislature under
s. 13.172 (2), the joint committee on finance, the gover-
nor, and the governor and elected legislative leaders of
Minnesota.
(2) NOTICE OF APPROVED RECIPROCITY AGREEMENT.
As soon as practicable after a reciprocity agreement
under s. 71.10 (7) is approved by the governor and the
joint committee on finance under s. 71.07 (7) (d) 1s., the
department of revenue shall send a notice to the legisla-
tive reference bureau for publication in the Wisconsin
Administrative Register that states the date on which the
agreement was approved.