Tax reciprocity agreement hung up on revenue

ST. PAUL, Minn. (AP) — Wisconsin and Minnesota are far apart on how much the Badger State should pay for tax reciprocity.

The two states reached an agreement in principle in February on a deal that will allow residents who live in one state and work in the other to file one state income tax return. The states must agree by Oct. 1 on how much money Wisconsin will pay Minnesota for lost tax revenue.

Sixteen Wisconsin legislators have sent a letter to Minnesota Gov. Mark Dayton expressing concern about the $96 million figure from Minnesota revenue officials. Wisconsin has pegged that figure at about $55 million.

Revenue commissioners from both states are working together to meet the October deadline. The St. Paul Pioneer Press says about 60,000 Wisconsin residents work in Minnesota, while 20,000 Minnesotans work in Wisconsin.