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Friday - March 16, 2018 2:07 am

Tax reciprocity between Minnesota and Wisconsin stuck in limbo, no end in sight

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There doesn't appear to be an end in sight in the stalemate over income tax reciprocity between Wisconsin and Minnesota.

Republican state representative Shannon Zimmerman, whose River Falls and Hudson district has thousands of constituents that would benefit from reciprocity, says he'll keep trying.

"We're optimistic and hopeful at this point in time," Zimmerman said. "The reality is that the ball is in Minnesota's court. Wisconsin has done, in my opinion, everything that we can do to try and resolve this issue."

Zimmerman does admit some of the reluctance of Minnesota to sign on to a new agreement is because Wisconsin welshed on a payment under the old agreement.

"The reality is that we are culpable to some degree in this situation, but we also need to remind ourselves that none of us be held to some of the mistakes or some of the challenges that we've had in the past," Zimmerman said.

He is among a small group of lawmakers in a committee working on a tax overhaul in Wisconsin.

The tax reciprocity issue affects about 60,000 in Wisconsin and 20,000 in Minnesota, but impacts a much higher ratio of Minnesotans in the La Crosse area.

Under the old agreement, residents who worked in one state and worked in the other could file taxes in just one and the states would transfer money between their treasuries. The former agreement ended in 2010 after Wisconsin missed a payment.

Mitch Reynolds

Mitch Reynolds is the News Director at Midwest Family Broadcasting. He covers the internecine agonies of La Crosse city hall. He really likes basketball.

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