The Governor’s unallotment plan includes an additional $106 million in tax revenues in FY 2010-11 by asking the State of Wisconsin to reimburse the State of Minnesota sooner under an existing reciprocity agreement. Under the current reciprocity agreement, Wisconsin residents who work in Minnesota file their state income taxes in Wisconsin, and Wisconsin remits those taxes to Minnesota after a 17 month delay.
So it speeds up payments that are already due, and then it cuts off the deal as of January 1, 2010. If you live in one state and work in the other, you’ll have to file state income taxes in both states for 2010. Your 2009 tax returns are not affected.
I thought that Governors Pawlenty and Doyle were looking into joint Wisconsin-Minnesota procurement so that we could save money on some infrastructure type stuff. Does this mean that’s off the table? I understand they’re probably separate processes, but this comes off as bad faith to me.
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Just to clarify – there isn’t any agreement to speed up payments from Wisconsin to Minnesota, as far as I’m aware.
The original unallotment plan was to negotiate an agreement so that Wisconsin would pay Minnesota sooner than it does now. When those negotiations broke down, the administration chose to end the reciprocity agreement instead, starting with taxes to be filed in 2010.
So T-Paw asked for the money sooner — payments for the 2009 tax year, assuming they all went in April ‘10, would show up in late 2011. But WI said no, so we cut the program off entirely.
But if the agreement is still in place for the 2009 tax year and WI hasn’t sped up the payments… I’m still fuzzy on how we gain money in 2010-11 on this.
Minnesota Ends Tax Reciprocity Agreement with Wisconsin http://bit.ly/1J5y8F
#procurement
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