Wisconsin owes $58.7 million under tax reciprocity agreement; final payment was due on Dec. 1, 2010
St. Paul—Minnesota Governor Mark Dayton sent a letter today to Wisconsin Governor Scott Walker requesting payment of the $58.7 million that is owed by the State of Wisconsin to the State of Minnesota under the terms of an individual income tax reciprocity agreement. The agreement was previously terminated by Governor Pawlenty when Wisconsin failed to reimburse Minnesota under the terms. Final payment was due on December 1, 2010, and in the letter, Governor Dayton requests payment in the “very near future.”
The full text of the letter is below or can be viewed here:
Dear Governor Walker:
Our two states cooperate in many important ways to encourage and support the welcomed exchanges between our citizens, businesses, and governments. I am writing you today concerning one of those transactions, which, unfortunately, went seriously awry before either of us became the Governors of our respective states.
Under the individual income tax reciprocity agreement between Minnesota and Wisconsin and under the statutes of both states, Wisconsin was required to reimburse Minnesota annually for its net revenue loss resulting from that reciprocity agreement.
Regrettably, Wisconsin’s failure to fulfill its responsibility for reimbursement compelled my predecessor, Governor Pawlenty, to terminate the agreement, which forces several thousand citizens in both of our states to have to file dual state income tax returns. While I regret this outcome, I concur with Governor Pawlenty’s decision, as the State of Wisconsin at that time owed the State of Minnesota over $58 million.
As calculated and agreed to by the staffs of the Wisconsin and Minnesota Departments of Revenue, a final payment from Wisconsin was due on December 1, 2010. The amount due was $58,697,000, with daily interest of $4,583.99 accruing after December 1st. However, your Revenue Secretary has now informed our Revenue Commissioner that this payment will not be made until some time in the next fiscal year.
I request your assistance and that of your Department of Revenue make the payment due Minnesota in the very near future. I thank you in advance for your help in resolving this important matter.