Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB374 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Date of enactment: ~~March 21, 2024~~
2		-	2023 Senate Bill 374 Date of publication*: ~~March 22, 2024~~
3		-	2023 WISCONSIN ACT ~~147~~
	1	+	Date of enactment:
	2	+	2023 Senate Bill 374 Date of publication*:
	3	+	2023 WISCONSIN ACT
4	4		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
5	5		and Minnesota income tax reciprocity.
6	6		The people of the state of Wisconsin, represented in
7	7		senate and assembly, do enact as follows:
8	8		SECTION 1. 71.10 (7) (a) of the statutes is amended
9	9		to read:
10	10		71.10 (7) (a) For purposes of income tax reciprocity
11	11		reached with the state of Minnesota under s. 71.05 (2),
12	12		whenever the income taxes on residents of one state
13	13		which would have been paid to the 2nd state without reci-
14	14		procity exceed the income taxes on residents of the 2nd
15	15		state which would have been paid to the first state without
16	16		reciprocity, the state with the net revenue loss shall
17	17		receive from the other state the amount of the loss. Inter-
18	18		est shall be payable on all delinquent balances relating to
19	19		taxable years beginning after the first December 31, 1977
20	20		after the date identified in the notice under 2023 Wiscon-
21	21		sin Act .... (this act), section 4 (2). The secretary of rev-
22	22		enue may enter into agreements with the state of Minne-
23	23		sota specifying the reciprocity payment due date,
24	24		conditions constituting delinquency, interest rates and
25	25		the method of computing interest due on any delinquent
26	26		amounts.
27	27		SECTION 2. 71.10 (7) (c) of the statutes is amended
28	28		to read:
29	29		71.10 (7) (c) For taxable years beginning after the
30	30		first December 31, 2000 after the date identified in the
31	31		notice under 2023 Wisconsin Act .... (this act), section 4
32	32		(2), this state shall pay Minnesota interest on any reci-
33	33		procity payment that is due under this subsection. Inter-
34	34		est shall be calculated according to the Laws of Minne-
35	35		sota 2002 Chapter 377, or at another rate and under
36	36		another method of calculation that is agreed to by Minne-
37	37		sota and Wisconsin.
38	38		SECTION 3. 71.10 (7) (d) of the statutes is created to
39	39		read:
40	40		71.10 (7) (d) 1. No agreement that is entered into
41	41		under this subsection on or after the effective date of this
42	42		subdivision .... [LRB inserts date], may take effect unless
43	43		all of the following apply:
44	44		a. The agreement applies to wages, salaries, tips, and
45	45		commissions received as an employee by persons who
46	46		reside in this state or Minnesota for at least 183 days dur-
47	47		ing their taxable years and who return to their state of res-
48	48		idence at least once per month.
49	49		b. The agreement contains no expiration or termina-
50	50		tion date.
51	51		bm. The governor issues a written notice of approval
52	52		of the agreement no later than 90 days after being pre-
53	53		sented with the agreement under subd. 1m.
54	54		cm. The agreement may take effect under subd. 1s.
55	55		1m. As soon as possible after the department reaches
56	56		an agreement with the state of Minnesota, the department
57	57		shall present the agreement to the governor and submit a
58	58		copy of the agreement to the legislature under s. 13.172
59	59		(2).
60	60		* 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
61		-	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
	61	+	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 2023 Senate Bill 374
62	62		1s. After the governor issues a written notice of
63	63		approval of the agreement under subd. 1. bm., the depart-
64	64		ment shall notify the joint committee on finance in writ-
65	65		ing of the agreement. The agreement may take effect if
66	66		within 14 working days of the notification the committee
67	67		does not schedule a meeting for the purpose of reviewing
68	68		the proposed agreement. If the committee schedules a
69	69		meeting for the purpose of reviewing the agreement, the
70	70		agreement may not take effect unless the committee
71	71		approves the agreement.
72	72		2. a. This state may not make a payment under an
73	73		agreement entered into under this subsection for any tax-
74	74		able year ending before the effective date of this subd. 2.
75	75		a. .... [LRB inserts date].
76	76		b. An agreement entered into under this subsection
77	77		may provide for making estimated payments during a
78	78		year and for a final payment for the year to be made after
79	79		computing the amount of the loss for the year as
80	80		described in par. (b).
81	81		3. An agreement entered into under this subsection
82	82		that takes effect on or after the effective date of this subdi-
83	83		vision .... [LRB inserts date], may not be revised unless
84	84		the department notifies the joint committee on finance in
85	85		writing of the proposed revised agreement. The pro-
86	86		posed revised agreement may take effect if within 14
87	87		working days of the notification the committee does not
88	88		schedule a meeting for the purpose of reviewing the pro-
89	89		posed revised agreement. If the committee schedules a
90	90		meeting for the purpose of reviewing the proposed
91	91		revised agreement, the proposed revised agreement may
92	92		not take effect unless the committee approves the pro-
93	93		posed revised agreement.
94	94		4. An agreement entered into under this subsection
95	95		may require that a study be conducted no more than once
96	96		every 5 years to obtain information necessary to deter-
97	97		mine payments under this subsection.
98	98		SECTION 4.0Nonstatutory provisions.
99	99		(1) DEPARTMENT OF REVENUE STUDY.
100	100		(a) In this subsection, “income from personal ser-
101	101		vices” means wages, salaries, tips, and commissions
102	102		received as an employee.
103	103		(b) The department of revenue, if agreed by the Min-
104	104		nesota department of revenue, shall conduct a study to
105	105		determine at least all of the following:
106	106		1. The number of residents of each state who earn
107	107		income from personal services in the other state, includ-
108	108		ing an assessment of population trends in the counties
109	109		along the border between the 2 states.
110	110		2. The total amount of income from personal services
111	111		earned in each state by the taxpayers described in subd.
112	112		1.
113	113		3. The amount of tax revenue that would be foregone
114	114		by each state if an income tax reciprocity agreement were
115	115		instituted between the 2 states under which the taxpayers
116	116		were required to pay income taxes on such income only
117	117		in their state of residence.
118	118		(c) The study under par. (b) shall be conducted as
119	119		soon as practicable, using information obtained from
120	120		each state’s income tax returns for taxable years 2020 and
121	121		2021 and from any other source of information the
122	122		departments determine is necessary to complete the
123	123		study.
124	124		(d) No later than December 31, 2024, the department
125	125		of revenue shall submit a report containing the results of
126	126		any study agreed to under par. (b) to the legislature under
127	127		s. 13.172 (2), the joint committee on finance, the gover-
128	128		nor, and the governor and elected legislative leaders of
129	129		Minnesota.
130	130		(2) NOTICE OF APPROVED RECIPROCITY AGREEMENT.
131	131		As soon as practicable after a reciprocity agreement
132	132		under s. 71.10 (7) is approved by the governor and the
133	133		joint committee on finance under s. 71.07 (7) (d) 1s., the
134	134		department of revenue shall send a notice to the legisla-
135	135		tive reference bureau for publication in the Wisconsin
136	136		Administrative Register that states the date on which the
137	137		agreement was approved.