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Wisconsin officials make new tax reciprocity offer to Minnesota

MADISON, WI (WTAQ) - Wisconsin has made a new offer to restore income tax reciprocity with Minnesota, so 80,000 people who work across the border can again file taxes with their home state instead of both.

The latest offer does not include the Gopher State's request for an extra payment of up to $6 million a year.

Wisconsin Revenue Secretary Rick Chandler calls that unprecedented. Still, Chandler and state lawmakers near the Minnesota border remain hopeful that the two states can reach an agreement by September 30th, so the reciprocity can return in 2015.

Because more Wisconsinites work in Minnesota than vice versa, the Badger State used to make annual payments to make the arrangement financially equal for both states.

Former Minnesota Governor Tim Pawlenty cut off the 40-year arrangement in 2009 because Wisconsin was getting behind on its payments. Minnesota says it's been fair in the effort to bring it back, saying it cut $1 million a year from its previous request.

Under Wisconsin's latest offer, Chandler says the Badger State would still increase its payments to Minnesota from the $58 million in 2009 to $87 million for the 2015 tax year.

Wisconsin lawmakers of both parties urged the Gopher State to accept the offer, so affected residents can save time and money.

(Story courtesy of Wheeler News Service)