CONTACT: Stephanie Marquis, 608-266-2300
MADISON – Yesterday, Wisconsin Department of Revenue Secretary Richard G. Chandler met with legislators and tax officials from both Minnesota and Wisconsin to discuss the status of negotiations to adopt a new Minnesota/Wisconsin income tax reciprocity agreement.
Secretary Chandler was impressed by the positive attitude of Minnesota Revenue Commissioner Myron Frans and legislators from both sides about renewing reciprocity. Without the reciprocity agreement, 22,000 Minnesota taxpayers and 57,000 Wisconsin residents – who live in one state and work in the other – have to file tax returns in both states, rather than just their home state.
Secretary Chandler has issued the following statement following yesterday’s discussions:
“Governor Scott Walker’s goal has been to fix income tax reciprocity so that taxpayers in both Minnesota and Wisconsin are not burdened with filing separate returns in the years ahead. Our goal in Wisconsin is to negotiate a new agreement that will make taxpaying easier for all these taxpayers. We would like to have a new agreement in place for 2013. We appreciate the willingness of both Minnesota and Wisconsin legislators and tax officials, as well as the Governors in both states, to work to make filing easier for our taxpayers.”
In yesterday’s discussion, Wisconsin agreed to address Minnesota’s concerns about the timing of payments by providing quarterly reciprocity payments. In addition, both states have agreed to conduct a study using recent tax data to determine specific payment responsibilities.
In order for the agreement to go into effect for tax year 2013, the two states will have to sign an agreement by October so that employers can be notified of the change. Wisconsin and Minnesota officials agreed to meet in mid-April for a further update on the progress of discussions.
