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Walker, Dayton's tax chat delayed

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A telephone call between Minnesota and Wisconsin governors about a tax dispute has been delayed until later this week.

Minnesota Gov. Mark Dayton and Wisconsin Gov. Scott Walker, both new to the offices, plan to talk about tax reciprocity, which until this year allowed a taxpayer in one state who works in the other to file just one state income tax return.

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Walker told reporters Tuesday that he wanted to negotiate with Dayton.

On Tuesday night, Dayton said that Wisconsin owes $58 million "to make Minnesota whole," but he stopped short of saying that he would accept nothing less. "Anything is potentially negotiable," Dayton said.

Then-Minnesota Gov. Tim Pawlenty canceled the agreement when Wisconsin fell behind on its payments. Dayton has sent Walker a letter demanding that it pay up.

Both states have budget problems.

Dayton said that more Wisconsinites are hurt by reciprocity cancelation than Minnesotans, hinting that Walker has more motivation to negotiate.

Lawmakers in both states have said they plan to debate bills to bring back reciprocity.

This week's call also will allow the governors, who have yet to meet, to get to know each other.

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Don Davis
Don Davis has been the Forum Communications Minnesota Capitol Bureau chief since 2001, covering state government and politics for two dozen newspapers in the state. Don also blogs at Capital Chatter on Areavoices.
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