HF2682 Summary

• Excludes compensation for personal or professional services performed in Minnesota by nonresidents whose primary residence is in another state from Minnesota gross income if that state allows a similar exclusion for Minnesota residents.

• Commissioner of Revenue may determine the reciprocity provisions should not apply when deemed in the best interests of the state, and provisions apply to Wisconsin-domiciled individuals as long as the Wisconsin-Minnesota reciprocity agreement remains in effect.

• Requires states with net revenue losses from the reciprocity exclusion to receive compensation from the other state, with loss calculations determined by September 30 following the calendar year close.

• Establishes a binding arbitration process if states cannot agree on the loss amount, with each state's revenue commissioner appointing one arbitration board member and those two members appointing a third.

• Changes reciprocity agreement termination to require legislative action rather than unilateral termination, though the commissioner may modify payment timing and calculation methods.

• Effective the day following final enactment for taxable years beginning after December 31, 2009.