House File 782 - Introduced



                                       HOUSE FILE       
                                       BY  SHOMSHOR


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act directing the director of revenue to negotiate reciprocal
  2    income tax agreements with other states.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2765HH 82
  5 mg/es/88

PAG LIN



  1  1    Section 1.  Section 422.8, subsection 5, Code 2007, is
  1  2 amended by adding the following new unnumbered paragraph after
  1  3 unnumbered paragraph 1:
  1  4    NEW UNNUMBERED PARAGRAPH.  The director shall enter into
  1  5 negotiations with other states to establish reciprocal
  1  6 agreements with the tax administration agencies of these
  1  7 states to further tax administration and eliminate duplicate
  1  8 withholding by exempting from Iowa taxation income earned from
  1  9 personal services in Iowa by residents of another state, if
  1 10 the other state provides a tax exemption for the same type of
  1 11 income earned from personal services by Iowa residents in the
  1 12 other state.  The director shall annually report to the
  1 13 general assembly on the states with which negotiations are
  1 14 being carried out and the possibility of agreements being
  1 15 reached.
  1 16                           EXPLANATION
  1 17    This bill directs the director of revenue to enter into
  1 18 negotiations with other states for the purpose of establishing
  1 19 reciprocal agreements that would assist in tax administration
  1 20 and exempt from taxation income earned from wages, salaries,
  1 21 commissions, and tips in Iowa by residents of the other state
  1 22 if a like kind exemption is provided to Iowa residents by that
  1 23 state.  At present, Illinois is the only state with which Iowa
  1 24 has such an agreement.
  1 25    The director is to report annually to the general assembly
  1 26 on the negotiations that are taking place and the possibility
  1 27 of agreements being entered into.
  1 28 LSB 2765HH 82
  1 29 mg:rj/es/88