State Legislators Ask to Preserve Income Tax Reciprocity

Tuesday, October 13th, 2009 at 5:40 am

Reciprocity 10-12-09

Lawmakers in Minnesota and Wisconsin are asking their respective governors to keep the program in place that allows those that live in one state but work in another to file one tax return.

The decision to send the letters to Minnesota Governor Tim Pawlenty and Wisconsin Governor Jim Doyle came after a joint meeting of legislators Monday in Woodbury.

Minnesota Governor Tim Pawlenty announced in September that he was canceling the program.  At the time Pawlenty’s office said Repealing the agreement will generate an estimated $131 million in revenue over the biennium.  His office reported that Termination of the reciprocity agreement will impact about 13,000 Minnesotans and 33,500 Wisconsin residents who meet the filing requirements and work across the border.

Wisconsin State Senator Sheila Harsdorf was one of ten legislators in attendance on Monday.  She said “The Governors from both states should get back to the table to hammer out a deal that works for citizens of both states,” adding “It is time to move beyond lip service about cooperation and work to get a deal that benefits the tens-of-thousands of border crossers each year.”

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