Lawmakers talk about the income reciprocity agreement between Wisconsin and Minnesota.

State representatives at the capitol hold a public hearing to discuss the long-standing agreement between the neighboring states that was recently cut off by Minnesota’s governor. Democrat Ann Hraychuck of Balsam Lake says the initial goal of her bill is to create a benchmark study.

The state of Wisconsin had been making timely payments, says Hraychuck, but not soon enough for Minnesota, whose budget deficit needed to be plugged.

“Unfortunately (Minnesota) Governor (Tim) Pawlenty decided that he didn’t want to play ball and because of that the reciprocity agreement ended several months ago.”

As part of the reciprocity deal, the Badger State had reimbursed the Gopher State every year for income taxes collected, because more than twice as many Wisconsinites work in Minnesota than vice versa.

Between the two states there are about 80,000 so-called ‘border crossers’ — those who live in one state and work in the other. Without a resolution, those workers will be forced to file income tax returns in both states.

NOTE: Public hearing in the Assembly Committee on Ways and Means.

Jackie Johnson report 1:21


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