Wis. pays Minn. $59.7M in delayed taxes

by Nancy Lebens, Minnesota Public Radio

St. Paul, Minn. — Wisconsin Tuesday paid Minnesota $59.7 million in tax reciprocity funds, according to a statement from the Minnesota Department of Revenue.

The money is a delayed payment owed under a now-cancelled income tax reciprocity agreement between Minnesota and Wisconsin. The agreement, which was ended by former Minnesota Gov. Tim Pawlenty for tax years after 2009, allowed residents of both states who lived in one and worked in the other to file only one state income tax return, rather than two.

In the statement, the Revenue Department said DFL Gov. Mark Dayton thanked Republican Wisconsin Gov. Scott Walker for making the payment. The statement adds that "Gov. Dayton believes that residents of both states would benefit from a new agreement."

Dayton has asked his Revenue Commissioner Myron Frans to "explore a potential new agreement" with Wisconsin Revenue Commissioner Richard Chandler.

Walker also has said he supports a renewed reciprocity agreement. He is scheduled to hold a press conference on the issue in Hudson Wednesday morning.