Tax reciprocity agreement still in works, but maybe not until 2014

Talk about it

The Minnesota Revenue Department says it needs to complete a study before reaching agreement with Wisconsin to give both states’ taxpayers an easier tax return season.

Revenue Commissioner Myron Frans said Minnesota remains committed to working out an income tax reciprocity agreement, even though the states failed to reach a deal in time for returns due next April.

“Though it’s disappointing we were unable to reach an agreement with Wisconsin that simplifies tax filing for border residents and fairly compensates Minnesota for its revenue loss, we continue to work on the benchmark study that will provide the data needed to get an agreement in place for 2014,” Frans said.

The study is to be finished in March.

Tax reciprocity allows taxpayers who live in one state and work in the other to file just one state tax return. Then the state that collects the most money, in this case Wisconsin, pays the other state taxes that are due.

Minnesota ended reciprocity when Wisconsin fell far behind in payments.

Tags: news, wisconsin, minnesota, politics