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Minnesota makes new tax reciprocity offer to Wisconsin

Tax forms graphic. copyright 2013 Midwest Communications, Inc.
Tax forms graphic. copyright 2013 Midwest Communications, Inc.

MADISON, WI (WTAQ) - Minnesota has made a new offer to Wisconsin, to try and restore income tax reciprocity between the two neighbors.

The Minneapolis Star-Tribune says the amount Wisconsin pays each year to equalize the tax effects would be reduced by $1 million, if the Badger State approves the new agreement by September 30th.

Reciprocity allows Wisconsinites who work in Minnesota -- and vice versa -- to file one state income tax return in their home state, instead of filing separate returns to both states.

About 80,000 residents of both states have been in that pickle since 2009, when former Minnesota Governor Tim Pawlenty cut off the 40-year-old agreement because Wisconsin was not paying its share.

Minnesota says the Badger State must pay about $92 million a year to equalize the tax figures, since many more Wisconsinites work in the Gopher State than the other way around.

Wisconsin officials have said the amount should be $4 to $6 million less.

(Story courtesy of Wheeler News Service)