St. Paul, MN (NNCNOW.com) - Minnesota is attempting to reinstate talks with Wisconsin in an effort to restore tax reciprocity between the two states.
The Minnesota Commissioner of Revenue has made an offer to the Wisconsin Revenue Secretary following legislation that passed during the 2014 session.
Past attempts to restore the deal, the most recent in March of 2013, fell flat due to $6 million in reimbursements requested by Minnesota.
The new proposal calls for a reduction of $1 million annually.
"It's Minnesota saying hey we don't want to walk away from this, even though it's mostly Wisconsin working in Minnesota. We think it's helpful for the 275,000 people to just have easier lives and the businesses to have easier filings," said Sen. Roger Reinert (DFL-Duluth, a big advocate for restoring tax reciprocity.
The Assistant Deputy Secretary with the Wisconsin Department of Revenue said if Minnesota eliminates the payment, reciprocity can be reinstated ASAP.
"We are glad Minnesota's ransom has come down $1 million dollars from its original $6 million dollars, but it's not right for Wisconsin to pay to undo a tax increase Minnesota imposed on its citizens when it ended reciprocity," said Jennifer Western, the assistant deputy secretary with the Wisconsin Department of Revenue.
Former Minnesota Governor Tim Pawlenty ended reciprocity in 2010.