Dayton says Wisconsin owes Minnesota $58 million

Thursday, January 13th, 2011 at 2:31 pm

ST. PAUL, Minn. (AP) — Minnesota Gov. Mark Dayton is demanding Wisconsin pay $58 million to settle a tax reciprocity program that’s been canceled.

Officials say Dayton is drafting a letter asking Wisconsin to send the tax collections immediately. The old deal nixed by former Republican Gov. Tim Pawlenty in 2009 allowed taxpayers who worked in Minnesota, but lived in Wisconsin, to file taxes in the state in which they resided. Wisconsin was to settle up later with Minnesota.

The $58 million, due Dec. 1, is the final payment from Wisconsin.

Wisconsin revenue secretary Richard Chandler says a communication breakdown between Pawlenty and former Democratic Gov. Jim Doyle is the reason the payment hasn’t been made. Minnesota revenue department spokeswoman Kit Borgman tells the St. Paul Pioneer Press her office recently received word that Wisconsin couldn’t pay until July 1.

Copyright 2011 The Associated Press.

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