State legislators pleased with progress on tax reciprocity

Sen. Bob Jauch, D-Poplar, and Rep. Nick Milroy, D-South Range, said they were pleased with the outcome of a meeting Monday among Minnesota Commissioner of Revenue Myron Frans, Wisconsin Secretary of Revenue Rick Chandler along with a dozen Minnesota and Wisconsin legislators at the Minnesota State Capital.

“We are pleased that officials from both states were willing to sit down and discuss the progress of talks to renew tax reciprocity and are very encouraged reciprocity could be restored by the 2013 tax year,” the legislators said in a joint prepared statement. “We commend Secretary Chandler and Commissioner Frans for their ongoing discussion, which we believe can result in a new tax reciprocity agreement.”

As a result of previous discussion, Wisconsin has agreed to address Minnesota’s cash flow concerns by providing quarterly payments. In addition, both states have agreed to conduct a study using next year’s tax data to identify trends and help clarify specific payment responsibility that will be helpful in implementing the finer details of an agreement.

In order for any agreement to go into effect for the 2013 tax year, the two states will have to sign an agreement by October of this year. There was widespread consensus that remaining details, although challenging, can be addressed through the continuing communication between the two revenue officials.

“We are pleased that both governors are supportive of these efforts,” Jauch and Milroy wrote.

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