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Walker, Dayton's tax chat delayed

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news River Falls, 54022

River Falls Wisconsin 2815 Prairie Drive / P.O. Box 25 54022

A telephone call between Minnesota and Wisconsin governors about a tax dispute has been delayed until later this week.

Minnesota Gov. Mark Dayton and Wisconsin Gov. Scott Walker, both new to the offices, plan to talk about tax reciprocity, which until this year allowed a taxpayer in one state who works in the other to file just one state income tax return.

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Walker told reporters Tuesday that he wanted to negotiate with Dayton.

On Tuesday night, Dayton said that Wisconsin owes $58 million "to make Minnesota whole," but he stopped short of saying that he would accept nothing less. "Anything is potentially negotiable," Dayton said.

Then-Minnesota Gov. Tim Pawlenty canceled the agreement when Wisconsin fell behind on its payments. Dayton has sent Walker a letter demanding that it pay up.

Both states have budget problems.

Dayton said that more Wisconsinites are hurt by reciprocity cancelation than Minnesotans, hinting that Walker has more motivation to negotiate.

Lawmakers in both states have said they plan to debate bills to bring back reciprocity.

This week's call also will allow the governors, who have yet to meet, to get to know each other.

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