Posted: Friday, 28 September 2012 11:00AM
It appears an income tax reciprocity agreement between Minnesota and Wisconsin will not be in place for 2013.
Minnesota Public Radio reports an agreement must be reached between the two states by October First for the program to be in effect starting in 2013. The impasse is over an estimated $10 million that Minnesota wants from Wisconsin annually.
The reciprocity deal would allow people who live in one state, but work in the other, to file just one income tax statement. It would involve about 20,000 who live in Minnesota and work in Wisconsin, and about 60,000 people who live in Wisconsin but work in Minnesota.
The agreement ended in 2009 and since then the workers have had to file income tax returns in both states.
The $10 million is part of what Wisconsin would pay Minnesota under the agreement. Wisconsin wants to pay Minnesota $63 million a year while Minnesota wants $96 million, including the $10 million.