Reciprocity Disagreement Resurfaces

There’s a new disagreement over an agreement to bring back income tax reciprocity between Wisconsin and neighboring Minnesota. The two states don’t agree on the amount of money Wisconsin should pay the Gopher State to equalize the arrangement. A deal was announced earlier this year to let people who live in one state and work in the other file just one income tax return with their home state. That’s how it used to be until a couple years ago, after former Minnesota Governor Tim Pawlenty scrapped the long-running reciprocity. Because more Wisconsinites work in Minnesota than vice-versa, Wisconsin must pay the Gopher State to balance things out. Wisconsin figures it should pay about 55-

million dollars a year, while Minnesota says it’s more like 96-million. The deadline is October first to agree on a final figure – and revenue officials from both states say they’re working to reach an agreement by then. But 16 Wisconsin lawmakers are not so sure. They wrote Minnesota Governor Mark Dayton complaining that his state is insisting on the 96-million. But Minnesota Deputy Revenue Commissioner Matt Massman says they’ve not insisted on any number. The issue affects about 80-thousand border residents of both states.