Minnesota official says tax reciprocity deal with Wisconsin probably won't happen for next year

Talk about it

ST. PAUL — Minnesota's top revenue official says a tax deal with Wisconsin is probably off for next year over Minnesota's demand to be reimbursed for lost revenue.

Minnesota Revenue Commissioner Myron Frans told the Associated Press on Thursday that he doesn't expect any more negotiations before Monday. That's the deadline for an agreement to revive tax reciprocity between the neighboring states for 2013 taxes.

The impasse means that residents who live in one state and work in the other will still have to file income tax returns in both states.

About 60,000 Wisconsin residents work in Minnesota, and about 20,000 Minnesotans work in Wisconsin.

Wisconsin Revenue Secretary Richard Chandler said in a column released Thursday that Minnesota's demand to be paid as much as $15 million is “unreasonable.”

In February, Wisconsin and Minnesota reached an agreement in principle that would once again allow residents who live in one state and work in the other to file only one state income tax return. But before the deal can be finalized, the states must agree on how much money Wisconsin will owe Minnesota the first year the policy is restored.

The St. Paul Pioneer Press contributed to this report.

Tags: news, wisconsin, business, money, minnesota, updates