Tax reciprocity agreement hung up on revenue - WXOW News 19 La Crosse, WI – News, Weather and Sports |

ST. PAUL, Minnesota (WXOW) - Wisconsin and Minnesota are millions apart on how much the Badger State should pay in a tax reciprocity agreement.

Back in February, the two states agreed to a deal that allows residents who live in one state and work in the other to file one state income tax return.

The states must agree by Oct. 1 on how much money Wisconsin will pay Minnesota for lost tax revenue.

Sixteen Wisconsin legislators have sent a letter to Minnesota Gov. Mark Dayton expressing concern about the $96 million figure from Minnesota revenue officials. Wisconsin has pegged that figure at about $55 million.

The legislators also asked Dayton to have the measure signed well before the October deadline. 

Revenue commissioners from both states are working together to meet the October deadline. According to numbers released by the St. Paul Pioneer Press, some 60,000 Wisconsin residents work in Minnesota, while 20,000 Minnesotans cross over to work in Wisconsin.