Tax Reciprocity Agreement Unlikely by Deadline

By: Associated Press
By: Associated Press

Negotiators trying to work out a tax reciprocity agreement between Minnesota and Wisconsin remain deadlocked over a deal as a deadline approaches.

Tax officials say Tuesday is the cutoff date to sign a new agreement allowing interstate commuters to file one state tax return for 2014 income taxes. Minnesota Revenue Commissioner Myron Frans says Oct. 1 is the hard deadline. Tax officials need three months to change tax forms and withholding instructions and to give employers time to adjust taxes to be withheld beginning Jan. 1.

The lack of an agreement means 80,000 taxpayers who live in one state and work in another will be required to continue filing two state tax returns. The St. Paul Pioneer Press says the states disagree over the credit offered taxpayers for taxes paid to another state.

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