Study of Wisconsin, Minnesota tax deal proposed

Resuming a tax reciprocity agreement with neighboring Minnesota would be studied under a bill before the Wisconsin state Senate.

Wisconsin and Minnesota had an agreement that allowed taxpayers who work in the other state to file one income tax return. The two states then reimbursed each other.

Minnesota Gov. Tim Pawlenty ended the deal last year after an agreement to speed up Wisconsin's payments fell through.

A bill before the Senate on Tuesday would require Wisconsin revenue department officials to work in conjunction with Minnesota officials to study the effects of resuming the tax deal.

The study would have to include how many people and how much in taxes are affected by such a deal.

The study would be due by 2012.

(Copyright 2010 by The Associated Press.

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