UNDATED (WSAU-Wheeler News) A Minnesota Senate Republican is proposing a bill to end a payment dispute with Wisconsin over income tax reciprocity. The Badger State has balked at previous demands to pay the Gopher State an extra $6-million more each year. It would make each state fiscally-whole, while letting people who live in one state and work in the other file a single state income tax return.
Winona Senator Jeremy Miller seeks to resolve the dispute by having Minnesota credit six-million dollars more each year to Wisconsin. He says it’s justified because the Badger State has a higher effective tax rate on middle-income people than Minnesota does. In return, the Gopher State would seek more timely tax reimbursement payments from Wisconsin.
Former Governor Jim Doyle kept delaying Wisconsin’s payments in the past decade — and that’s why former Minnesota Governor Tim Pawlenty ended the reciprocity agreement six years ago. In 2011, new Governor Scott Walker repaid Minnesota for the debt his predecessor left.
