House approves reciprocal tax study with Wisconsin, directing Department of Revenue to report

The Iowa House approved House File 2746, a bill establishing a reciprocal-tax study between Iowa and Wisconsin, aimed at clarifying tax obligations for Iowans who live in one state and work in the other.

Representative Lundgren presented the bill as a study to be carried out by the Department of Revenue. ‘‘This is good for all of our constituents that are maybe living here in the state of Iowa, working in Wisconsin, or vice versa,’’ the sponsor said. Representative Scholten noted he supported the bill while observing it could be expanded in scope.

Supporters said the study will provide a ‘‘floor plan’’ for moving forward; the chair said the House will review Department of Revenue findings and could pursue agreements with additional states. The House recorded 91 ayes, 0 no, and 9 absent; the bill was declared passed by constitutional majority.

What happens next: The Department of Revenue will undertake the study; any reciprocal agreements with other states would require additional legislative or intergovernmental steps.