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Forum to be held on breakdown of WI-MN tax reciprocity pact

MADISON, WI (WTAQ) - We'll learn more Monday about why Wisconsinites who work in Minnesota -- and vice versa -- will have to file tax returns with both states for another year. 

A forum will be held in Minneapolis to explain the breakdown of the long-running income tax reciprocity agreement between the two states. 

Wisconsin Revenue Secretary Rick Chandler and Minnesota Revenue Commissioner Myron Frans will address the issue at the forum, to be held at Minnesota's Humphrey Institute.

The two states failed to reach a new reciprocity agreement by an October 1st deadline. The sticking point involved tax credits Wisconsin would have paid Minnesota residents to make up for the Badger State's higher income taxes.  

Frans says Minnesotans should not subsidize higher taxes in other states. Chandler said Wisconsin agreed to Minnesota's position on two other issues -- and a reversal on tax credits is not reasonable.  

Former Minnesota Governor Tim Pawlenty canceled the agreement in 2009. That's because Wisconsin was too slow to make annual payments to the Gopher State to make up for the tax differences.