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Contributors in Minnesota: Patrick Condon, J. Patrick Coolican, Patricia Lopez, Ricardo Lopez, Abby Simons, Rachel E. Stassen-Berger and Glen Stubbe. Contributors in D.C.: Corey Mitchell, Allison Sherry and Jim Spencer.

Wisconsin pays Minnesota $59.7 million tax tab

Posted by: under Funding, Gov. Mark Dayton, Gov. Tim Pawlenty, State budgets Updated: July 12, 2011 - 7:52 PM

Wisconsin finally paid Minnesota the $59.7 million it was owed as part of a now-expired income tax reciprocity agreement, according to the Minnesota Department of Revenue.

The revenue department made the announcement Tuesday, the day before Wisconsin Gov. Scott Walker is scheduled to hold a news conference in Hudson to discuss the former agreement between the two states.

The arrangement had allowed residents who lived in one state and worked across the border to file taxes in only one state.

When Wisconsin slipped into financial trouble more than a year ago, it never made the final payment as the agreement expired. Walker said earlier this year the money was included in the budget repair bill that log-jammed his state last winter.

With money in hand, Gov. Mark Dayton now says that residents of both states would benefit from a new agreement, according to the revenue department.

Dayton has asked Revenue Commissioner Myron Frans to explore the potential of a new agreement with the Wisconsin revenue secretary.
 

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