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Minnesota lawmakers want to bring back tax reciprocity with Wisconsin

Some Minnesota lawmakers want to bring back tax reciprocity.

That's the Minnesota-Wisconsin agreement that lets people who work in one state and live in the other file income taxes only to their home state.

Minnesota's revenue department recently decided to end the agreement, with Gov. Tim Pawlenty's approval.

It will save Minnesota $131 million over the next two years, but it also means the two-state commuters will have to file income tax returns with both states after the 2010 tax year.

Minnesota Rep. Greg Davids says folks in his district who work in Wisconsin will end up paying more in taxes.

And Davids, R-Preston, says he'll propose a bill to bring the reciprocity back. He also wants the Legislature to decide the issue in the future instead of bureaucrats.

Sen. Dan Kapanke, R-La Crosse, says Minnesota lawmakers have asked him if there's anything he can do.

The issue is not as urgent here, since Wisconsinites won't pay any more in taxes. Kapanke says that if a bi-partisan group can come together, they might be able to work out something that's reasonable for both states.