Wisconsin Pays Debt To Minnesota

Wednesday, July 13th, 2011 at 8:03 am

Wisconsin has settled an old tax-reciprocity debt owed to Minnesota.

The Minnesota Department of Revenue said Tuesday that Minnesota has received a payment of $59.7 million from Wisconsin under the former reciprocity agreement between the two states.

Under the agreement, taxpayers who lived in one state but worked in the other could file a single income-tax return. The agreement called for the states to reimburse each other, but Wisconsin always ended up owing Minnesota because more Wisconsin residents used the arrangement.

The Wisconsin Legislature approved the payment as part of the state budget. Wisconsin Gov. Scott Walker plans a news conference Wednesday in Hudson to discuss the payment.

Minnesota Gov. Mark Dayton thanked Walker for making the payment. Dayton believes residents of both states would benefit from a new agreement

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