Wis. Gov. Walker asks Minn. for new income tax deal

Wisconsin Gov. Scott Walker told reporters in Hudson Wednesday morning that he hopes his state and Minnesota can soon negotiate a new income tax deal.

Wisconsin on Tuesday paid nearly $60 million owed to Minnesota from a past reciprocity agreement. Under the deal, people who worked in one state but lived in the other could file their taxes in their home state, and the two states would pay each other to settle up. Minnesota opted out of the tax arrangement last year because of delayed payments from Wisconsin. Now that Wisconsin is paid up, Walker wants a new deal.

"Hopefully, at a minimum, at least by tax year a year from now," Walker said, "we'll be able to have that in place and if not sooner that would be great, but we think we can work on that. We're duly committed to that."

Minnesota Gov. Mark Dayton issued a statement thanking Walker for paying off the debt. In the statement Dayton said it would be in Minnesota's best interest to work toward new agreement that would provide prompt tax payments to both states. Dayton has asked his Revenue Commissioner Myron Frans to "explore a potential new agreement" with Wisconsin Revenue Commissioner Richard Chandler.

Walker is optimistic a new deal can be brokered.

"I think in the next couple of months we can get an agreement," Walker said. "I think the biggest issue, and I understand from the Minnesota standpoint you know we've been talking, but until they saw the check."

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