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Payment Opens Door to Talks for New Tax Reciprocity Agreement

Madison -- Governor Scott Walker announced today that the state has paid off the $60 million it owed Minnesota from the Minnesota-Wisconsin tax reciprocity agreement that was left unpaid by the previous administration in December.  Since taking office, Governor Walker’s administration has re-opened communication with Minnesota about a new reciprocity agreement. Today’s payment paves the way for further talks over a new agreement.

“We want to make life easier for taxpayers and pay our bills,” said Governor Walker. “With this payment we can continue talking with our Minnesota neighbors about restoring our reciprocity agreement. Renewing a reciprocity agreement will ease tax-filing for over 55,000 Wisconsinites and 20,000 Minnesotans. I want to especially thank Senators Harsdorf, Kapanke, and Jauch for being strong advocates on this issue and championing Western and Northwester Wisconsin taxpayers.”

Minnesota and Wisconsin have had a reciprocity agreement in effect since 1968 before it was cancelled in 2009. With the outstanding bill paid, the two states are now able to work on a new agreement that will benefit individual taxpayers and small businesses.  If a new agreement is in place individuals will not have to file tax returns in two states.

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