A bill for an act relating to establishing a reciprocal tax agreement study by the department of revenue, and including effective date provisions.

Summary

The bill orders the Iowa Department of Revenue to examine whether a reciprocal tax agreement with Wisconsin is feasible and beneficial. It would affect Iowa and Wisconsin workers who earn wages across state lines by potentially simplifying which state taxes their income. The study must be completed and reported to the legislature by the end of 2026, and a draft agreement would be drafted for legislative review before the 2027 session.

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