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MN bill aims to resolve tax reciprocity dispute with Wisconsin

ST. PAUL, MN (WTAQ) - State senators in Minnesota want Governor Mark Dayton's people to try and resolve a dispute with Wisconsin over income tax reciprocity.

The request is included in a bill passed by the Senate which would give a new round of tax cuts to businesses, veterans, volunteer firefighters, and transit riders in the Gopher State.

It's different from a House version, and talks would have to take place to hammer out a final version.

The Senate bill shows that Minnesota lawmakers remain concerned about the reciprocity issue, after their former Governor Tim Pawlenty ended a long-time agreement between Wisconsin and Minnesota in 2009.

It allowed border residents who live in one state and work in the other to file state income tax returns only with their home states. Last we heard, Wisconsin balked at paying a designated amount of tax credits to Minnesotans to make up for the Badger State's higher income taxes.  

Since the last agreement was scrapped, thousands of border residents have had to file income tax returns with both states.

(Story courtesy of Wheeler News Service/Minnesota News Network)