Last minute effort to save income tax reciprocity

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Dec 3, 2009 No Comments ›› admin

December 03, 2009

Eau Claire (WQOW) — State lawmakers are fighting to convince our neighbors to the west not to pull the plug on income-tax reciprocity. Wisconsin and Minnesota lawmakers have a meeting set up next week to try and salvage the agreement according to Senator Kathleen Vinehout.

Minnesota decided to end a deal earlier this year allowing residents who work in the neighboring state to file only one return.  Minnesota tax collectors claim it will bring in an extra $131-million to help the budget deficit.  But time is running out.  The deal is set to dissolve at the end of the year.

“It would definitely advantageous for us to resolve this,” says Senator Kathleen Vinehout (D-31st) “But unfortunately bargaining has been going very poorly.”  Vinehout is doubtful they’ll reach an agreement.

As many as 57,000 Wisconsinites commute to jobs in Minnesota.  If negotiations fail, those workers would have to file tax returns in both states.  The tax reciprocity agreement has been in place for 41 years.

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P.O. Box 1274
Eau Claire, WI 54702