Tax Reciprocity Battle at Standstill

By KBJR News 1

Credit: MGN Online

Tax Reciprocity Battle at Standstill

March 28, 2013 Updated Mar 29, 2013 at 11:21 AM CST

St. Paul, MN (NNCNOW.com) - The battle over tax reciprocity between Minnesota and Wisconsin remains at a standstill despite a new proposal made earlier this Month by Minnesota.

In a Duluth News Tribune editorial this week, The Commissioner of the Minnesota Department of Revenue, Myron Frans, stood by the deal offered on March 4th.

The sticking point for Wisconsin, however, is that Minnesota is asking Wisconsin to make an additional $6 million payment to make up for revenue loss.

In the editorial, Frans says the reason for that payment is Wisconsin's income taxes are higher than Minnesota's for most middle-income workers.

The Wisconsin Department of Revenue says Minnesota finds itself in that situation only because Governor Tim Pawlenty ended reciprocity in 2010.

Wisconsin says it's committed to restoring reciprocity, but won't agree to anything that includes the proposed reimbursement.

Kevin Jacobsen
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