State Officials: Tax Reciprocity Deal Unlikely by Oct 1st Deadline

By KBJR News 1

State Officials: Tax Reciprocity Deal Unlikely by Oct 1st Deadline

September 27, 2012 Updated Sep 27, 2012 at 4:26 PM CDT

St. Paul, MN (Northland's NewsCenter) - State officials hit a major road block in the efforts to reinstate reciprocity between Minnesota and Wisconsin.

An agreement would make it easier for tax payers who, live in one state and work in the other, by having them only file one set of tax returns.

State Senator Roger Reinert says talks broke down as both states move to create a new agreement by October 1st.

“From Minnesota’s standpoint, the document was done and ready to sign,” said Senator Reinert. “We needed Wisconsin to come to terms on a couple final issues."

The Wisconsin Department of Revenue says the sticking point is a reimbursement payment Wisconsin taxpayers would have to pay under the agreement.

"This payment is not possible under current law in Wisconsin, and it is unreasonable to ask Wisconsin taxpayers to pay to reverse a tax increase Minnesota imposed on its own residents," said Richard G. Chandler, the secretary of the Wisconsin Department of Revenue in a statement.

Officials from both states say they will continue to work toward an agreement, but it doesn't look likely it will be ahead of Monday's deadline.

Former Governor Tim Pawlenty ended Tax Reciprocity in 2009.

Over 57,000 Wisconsin residents work in Minnesota and over 22,000 Minnesota residents work in Wisconsin.

Kevin Jacobsen
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