Tax reciprocity could be coming to Wisconsin, Minnesota in 2013

ST. PAUL, Minn. (AP) -- Revenue officials from Minnesota and Wisconsin say they hope to finalize an agreement on tax reciprocity that will allow residents who live in one state and work in the other to file just one state income tax return beginning next year.

About 60,000 Wisconsin residents who work in Minnesota and 20,000 people who live in Minnesota and work in the Badger State currently file two state tax returns. Wisconsin's revenue secretary, Richard Chandler, and his counterpart in Minnesota, Myron Frans, say they intend to sign a new agreement by Oct. 1 so employers can be notified about new income tax withholding requirements.

Both revenue chiefs say they have legal authority to sign a deal without legislative action.

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