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Minnesota Legislature

Legislative News and Views - Rep. Greg Davids (R)

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Tuesday, February 28, 2012
ST. PAUL - Can Minnesota and Wisconsin residents expect a new income tax reciprocity agreement between the two states beginning in 2013? Following a recent meeting between lawmakers from both states, State Representative Greg Davids (R-Preston) and State Senator Jeremy Miller (R-Winona) are optimistic that this goal will become reality. Last session, Davids and Miller authored legislation to reinstate reciprocity. “Legislators from both states, and both sides of the aisle, really showed a sense of urgency at this meeting,” Davids said. “All of us realize we have gone far too long without an agreement, and that it’s in everyone’s best interests to reinstate reciprocity as soon as possible.” Rep. Davids, who chairs the Minnesota House Taxes Committee, Senator Miller and Wisconsin State Senator Sheila Harsdorf held an income tax reciprocity meeting on February 27 with lawmakers from both states that represent border communities. The goal of the forum was to talk with revenue commissioners in both states, work through any potential roadblocks, and secure a new reciprocity agreement. Miller said thousands of residents in Fillmore, Houston, and Winona counties are directly impacted by the agreement. “Without a new agreement, these citizens had to file income taxes twice and are paying income taxes in both states. It is an unfortunate arrangement, and I have made it a priority to resolve it before the next tax season.” Davids and Miller stressed that the most significant reciprocity issues, such as a payment plan, were resolved during the meeting. The revenue commissioners now must reach consensus on a few smaller details, like interest rates, and have been asked to report back to this legislative working group on April 15 to share their progress. With governors of both states strongly supporting income tax reciprocity, Davids and Miller believe a new agreement is inevitable. If the revenue commissioners sign a new Minnesota/Wisconsin income tax reciprocity agreement before October 1, the plan would begin on January 1, 2013.