Bill
Bill > HF2028
IA HF2028
IA HF2028A bill for an act relating to establishing a reciprocal tax agreement study by the department of revenue, and including effective date provisions.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to establishing a reciprocal tax agreement study by the department of revenue. For the mutual benefit of both this state and the state of Wisconsin, the bill directs the department of revenue (DOR) to study the feasibility of entering into a reciprocal tax agreement with the tax administration agencies of the state of Wisconsin that adheres to the conditions established in Code section 422.8(4). Generally, under such an agreement any wages or salary made by an Iowa resident working in Wisconsin is taxable only to Iowa and not to Wisconsin, and any wages or salary made by a Wisconsin resident working in Iowa is taxable only to Wisconsin and not to Iowa. By December 1, 2026, DOR shall report to the general assembly the findings of the study, including the reasons the reciprocal tax agreement is feasible or not feasible. If a reciprocal tax agreement is determined to be feasible and mutually beneficial by this state and the state of Wisconsin, DOR shall submit the proposed reciprocal tax agreement in bill form to the legislative services agency prior to the 2027 regular session of the 92nd General Assembly for authorization and approval as required by Code section 422.8(4). Currently, the state of Iowa has one existing reciprocal tax agreement with the state of Illinois. The bill takes effect upon enactment.
AI Summary
This bill directs the Iowa Department of Revenue (DOR) to study the possibility of creating a reciprocal tax agreement with Wisconsin, which would generally mean that residents working in the other state would only pay income tax to their home state, not the state where they work. This study is being undertaken because many residents of Iowa work in Wisconsin and vice versa, and such an agreement could be mutually beneficial. The DOR must report its findings, including whether the agreement is feasible, to the General Assembly by December 1, 2026, and if it's deemed feasible and beneficial, the DOR will then submit a proposed agreement in bill form for legislative approval before the 2027 legislative session. Iowa currently has a similar agreement with Illinois, and this bill takes effect immediately upon being signed into law.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Subcommittee recommends passage. (on 02/11/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF2028 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF2028.html |
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