Wisconsin legislators say Minnesota officials have rejected a plan to continue tax reciprocity.
Wisconsin and Minnesota had an agreement that allowed taxpayers who live in one state but work in the other to file one income tax return. The two states then reimbursed each other.
Minnesota Gov. Tim Pawlenty ended the deal this year after an agreement to speed up Wisconsin's payments fell through.
Wisconsin state Sen. Sheila Harsdorf, R-River Falls, and Rep. Ann Hraychuck, D-Balsam Lake, say they offered to pay Minnesota $90 million in three payments over the next 18 months on Wednesday.
But they say Minnesota Revenue Commissioner Ward Einess refused, saying Minnesota can get $131 million by taxing Wisconsin residents directly.
A message left at Einess' office wasn't immediately returned.