Bills › 91st General Assembly
Relating to establishing a reciprocal tax agreement study by the department of revenue, and including effective date provisions
Sponsored by the House Ways and Means Committee, Rep. Shannon Lundgren (R)
Topics:State governmentTaxes
Same legislation: HF 2028
Where it is now
- Done: IntroducedJanuary 13, 2026
- Done: SubcommitteeJanuary 29, 2026
- Done: House committeeMarch 25, 2026
- Done: Passes the HouseApril 6, 202692–0
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Iowa's Department of Revenue will study whether the state should make a special tax deal with Wisconsin. This agreement would allow people living in one state but working in the other to pay income taxes only to their home state. The department must report its findings to the legislature by December 2026.1
Read the official explanation
This bill relates to establishing a reciprocal tax agreement study by the department of revenue.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. 8(4). Currently, the state of Iowa has one existing reciprocal tax agreement with the state of Illinois. The bill takes effect upon enactment.
Why it matters. The Iowa Department of Revenue would study whether Iowa and Wisconsin could enter into a tax agreement where residents only pay income tax to their home state when working across the border. If feasible, the department would report its findings to the general assembly by December 1, 2026.2
Senate subcommittee
Named April 13, 2026. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Lobbying
0 for · 0 against · 1 undecided · Who →
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91st General Assembly