The latest effort by Wisconsin lawmakers to resolve a dispute over tax reciprocity is being rejected by officials in Minnesota.
For years, Wisconsin has reimbursed Minnesota for taxes paid by Badger State residents who cross the border for work. But the agreement was dropped when Minnesota said the payments were coming too slowly.
State lawmakers have been working to reach a new deal, which would have had Wisconsin paying Minnesota $90 million over the next 18 months.
However, state Senator Sheila Harsdorf (R-River Falls) and Representative Ann Hraychuck (D-Balsam Lake) say Minnesota has rejected that proposal, arguing it can get the full $131 million it’s owed to by taxing Wisconsin workers directly.
If an agreement can’t be reached, who commute across the border will have to file tax returns in both states starting with the 2010 tax year.
AUDIO: Andrew Beckett reports (:37)