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Bill would study Minnesota-Wisconsin tax deal

ST. PAUL, Minn. (AP) — A Wisconsin tax deal scrapped last year by Minnesota Gov. Tim Pawlenty will get another look.

The Minnesota House Taxes Committee hears a bill Monday that would require the two states’ revenue departments to study income tax reciprocity.

Minnesota and Wisconsin had a deal that allowed taxpayers who worked in the other state to file a single income tax return, and the two states reimbursed each other.

Pawlenty dropped the agreement last year when the two states couldn’t agree on speeding up Wisconsin’s payments to Minnesota. More Wisconsin taxpayers used the arrangement than Minnesotans.

The Wisconsin Legislature has sent a similar bill to Gov. Jim Doyle.

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