tax reciprocity

Revenue officials from Minnesota and Wisconsin have settled a key issue to reaching a tax reciprocity agreement. Separate studies by the two states find Wisconsin would owe Minnesota about $69 million to compensate for the tax revenue it would lose if residents who live in one state and work in the other file a single state income tax return.

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.