Senator Jeremy Miller (R-Winona) introduced Senate File 538, a bill instructing the Minnesota Department of Revenue to work with the Wisconsin Revenue Department to look at entering into a new income tax reciprocity agreement.

“Income tax reciprocity is a significant issue for our district and other border communities in the state. There are thousands of people who live in Minnesota but commute across the border to Wisconsin for work,” said Senator Miller. “Houston County is the number one county in the state affected by the lack of an agreement. I have been working with Representative Greg Davids, Representative Gene Pelowski, and others in a bipartisan manner with the goal of finding a solution for those who live in Minnesota and work in Wisconsin.”

There was an income tax reciprocity agreement in place from 1968 to 2009, but it was terminated because Wisconsin was not making timely reimbursement payments. An income tax reciprocity tax credit was included in the bipartisan tax bill that passed at the end of the 2016 before ultimately being vetoed by the governor.

“My hope is that we can get it done this year, particularly since we were so close last year,” continued Senator Miller. “A new income tax reciprocity agreement will help thousands of Minnesota families.”

Senate File 538 was introduced in the Senate on Thursday, February 2. It was referred to the Committee on Taxes, where it awaits a hearing.