Thousands of Minnesotans who work in Wisconsin (and even more Badger-Staters who work here) must file two state tax returns this season because Wisconsin didn’t pay its bill on time and former Minnesota Gov. Tim Pawlenty ended the long-standing tax reciprocity agreement between the two states.
Wisconsin still hasn’t paid the whole bill, and it obviously has bigger problems on its plate these days than the $58 million due to St. Paul. Apparently repayment is included in that controversial budget-repair bill that sent the Democratic state senators scurrying across state lines.
Still, there are a couple of bills floating around the Minnesota Legislature that would start building a bridge to reinstate the agreement, says the Winona Daily News. The bills would require a study to see what changes are needed to make a deal work.
Championing the cause is Rep. Greg Davids, R-Preston, chair of the House Tax Committee, who represents most of Houston County, where nearly 3,000 people cross the Mississippi River for work, the paper said.
Statistics show that about 57,000 Wisconsin residents work in Minnesota, while only about 22,000 Minnesota residents work in Wisconsin.