Watch CBS News

Minn. Gets $59M Tax-Reciprocity Payment From Wis.

ST. PAUL, Minn. (AP) -- Wisconsin has settled an old tax-reciprocity debt owed to Minnesota.

The Minnesota Department of Revenue said Tuesday that Minnesota has received a payment of $59.7 million from Wisconsin under the former reciprocity agreement between the two states.

Under the agreement, taxpayers who lived in one state but worked in the other could file a single income-tax return. The agreement called for the states to reimburse each other, but Wisconsin always ended up owing Minnesota because more Wisconsin residents used the arrangement.

The Wisconsin Legislature approved the payment as part of the state budget. Wisconsin Gov. Scott Walker plans a news conference Wednesday in Hudson to discuss the payment.

Minnesota Gov. Mark Dayton thanked Walker for making the payment. Dayton believes residents of both states would benefit from a new agreement.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.