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‘Collector-in-chief’ Dayton sends mildly dunning letter to Wisconsin for overdue $58 million

The $58 million owed to Minnesota by Wisconsin for past-due tax reciprocity payments was in the news Thursday, because final payment was due Dec.

The $58 million owed to Minnesota by Wisconsin for past-due tax reciprocity payments was in the news Thursday, because final payment was due Dec. 1 and the check is not in the mail.

But Minnesota apparently doesn’t need a collection agency to dun the debtor, not when our new collector-in-chief is on the job.

Dayton sent this letter today to his new counterpart to the East, Wisconsin Gov. Scott Walker:

Our two states cooperate in many important ways to encourage and support the welcomed exchanges between our citizens, businesses, and governments. I am writing you today concerning one of those transactions, which, unfortunately, went seriously awry before either of us became the Governors of our respective states.

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Under the individual income tax reciprocity agreement between Minnesota and Wisconsin and under the statutes of both states, Wisconsin was required to reimburse Minnesota annually for its net revenue loss resulting from that reciprocity agreement.

Regrettably, Wisconsin’s failure to fulfill its responsibility for reimbursement compelled my predecessor, Governor Pawlenty, to terminate the agreement, which forces several thousand citizens in both of our states to have to file dual state income tax returns. While I regret this outcome, I concur with Governor Pawlenty’s decision, as the State of Wisconsin at that time owed the State of Minnesota over $58 million.

As calculated and agreed to by the staffs of the Wisconsinand Minnesota Departments of Revenue, a final payment from Wisconsin was due on December 1, 2010. The amount due was $58,697,000, with daily interest of $4,583.99 accruing after December 1st. However, your Revenue Secretary has now informed our Revenue Commissioner that this payment will not be made until some time in the next fiscal year.

I request your assistance and that of your Department of Revenue [to] make the payment due Minnesota in the very near future. I thank you in advance for your help in resolving this important matter.

Sincerely,

Mark Dayton