Wisconsin, Minnesota remain far apart on tax reciprocity

CREATED Aug. 17, 2012

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ST. PAUL, Minn. (AP) -- Wisconsin and Minnesota are far apart on how much the Badger State should pay for tax reciprocity.
  
The two states reached an agreement in principle in February on a deal that will allow residents who live in one state and work in the other to file one state income tax return. The states must agree by Oct. 1 on how much money Wisconsin will pay Minnesota for lost tax revenue.
  
Sixteen Wisconsin legislators have sent a letter to Minnesota Gov. Mark Dayton expressing concern about the $96 million figure from Minnesota revenue officials. Wisconsin has pegged that figure at about $55 million.
  
Revenue commissioners from both states are working together to meet the October deadline. The St. Paul Pioneer Press (http://tinyurl.com/8s36uwu ) says about 60,000 Wisconsin residents work in Minnesota, while 20,000 Minnesotans work in Wisconsin.