Read the full stored bill text
House
File
2746
-
Introduced
HOUSE
FILE
2746
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2028)
A
BILL
FOR
An
Act
relating
to
establishing
a
reciprocal
tax
agreement
1
study
by
the
department
of
revenue,
and
including
effective
2
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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H.F.
2746
Section
1.
RECIPROCAL
TAX
AGREEMENT
WITH
THE
STATE
OF
1
WISCONSIN
——
STUDY.
2
1.
Due
to
numerous
residents
of
this
state
employed
in
3
the
state
of
Wisconsin
and
conversely
numerous
residents
of
4
the
state
of
Wisconsin
employed
in
this
state,
and
for
the
5
mutual
benefit
of
this
state
and
the
state
of
Wisconsin,
the
6
department
of
revenue
is
directed
to
study
the
feasibility
7
of
entering
into
a
reciprocal
tax
agreement
with
the
tax
8
administration
agencies
of
the
state
of
Wisconsin
that
adheres
9
to
the
conditions
established
in
section
422.8,
subsection
4.
10
2.
By
December
1,
2026,
the
department
of
revenue
shall
11
report
to
the
general
assembly
the
findings
of
the
study,
12
including
the
reasons
the
reciprocal
tax
agreement
is
feasible
13
or
not
feasible.
If
a
reciprocal
tax
agreement
is
determined
14
to
be
feasible
and
mutually
beneficial
by
this
state
and
the
15
state
of
Wisconsin,
the
department
of
revenue
shall
submit
16
the
proposed
reciprocal
tax
agreement
in
bill
form
to
the
17
legislative
services
agency
prior
to
the
2027
regular
session
18
of
the
Ninety-second
General
Assembly
for
authorization
and
19
approval
as
required
by
section
422.8,
subsection
4.
20
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
21
importance,
takes
effect
upon
enactment.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
relates
to
establishing
a
reciprocal
tax
agreement
26
study
by
the
department
of
revenue.
27
For
the
mutual
benefit
of
both
this
state
and
the
state
of
28
Wisconsin,
the
bill
directs
the
department
of
revenue
(DOR)
29
to
study
the
feasibility
of
entering
into
a
reciprocal
tax
30
agreement
with
the
tax
administration
agencies
of
the
state
of
31
Wisconsin
that
adheres
to
the
conditions
established
in
Code
32
section
422.8(4).
Generally,
under
such
an
agreement
any
wages
33
or
salary
made
by
an
Iowa
resident
working
in
Wisconsin
is
34
taxable
only
to
Iowa
and
not
to
Wisconsin,
and
any
wages
or
35
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H.F.
2746
salary
made
by
a
Wisconsin
resident
working
in
Iowa
is
taxable
1
only
to
Wisconsin
and
not
to
Iowa.
2
By
December
1,
2026,
DOR
shall
report
to
the
general
assembly
3
the
findings
of
the
study,
including
the
reasons
the
reciprocal
4
tax
agreement
is
feasible
or
not
feasible.
If
a
reciprocal
tax
5
agreement
is
determined
to
be
feasible
and
mutually
beneficial
6
by
this
state
and
the
state
of
Wisconsin,
DOR
shall
submit
7
the
proposed
reciprocal
tax
agreement
in
bill
form
to
the
8
legislative
services
agency
prior
to
the
2027
regular
session
9
of
the
92nd
General
Assembly
for
authorization
and
approval
as
10
required
by
Code
section
422.8(4).
11
Currently,
the
state
of
Iowa
has
one
existing
reciprocal
tax
12
agreement
with
the
state
of
Illinois.
13
The
bill
takes
effect
upon
enactment.
14
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