There may be hope to renew an income-tax reciprocity agreement between Minnesota and Wisconsin, weeks after that prospect appeared dead.

Wisconsin lawmakers concluded their 2009 fall session earlier this month without approving a redrawn version of the reciprocity agreement, which allows those who commute between Minnesota and Wisconsin to file one tax return in the state where they live.

But Democratic leaders in the Wisconsin Senate now say they may reconvene specifically to approve a reciprocity agreement, Minnesota Department of Revenue commissioner Ward Einess said Thursday. Wisconsin Senate leaders plan to join officials from the administrations of Minnesota Gov. Tim Pawlenty and Wisconsin Gov. Jim Doyle in early December to discuss the matter, Einess said.

Pawlenty cancelled the 41-year-old reciprocity agreement in September, saying Wisconsin was repaying Minnesota too slowly for its share of tax revenues. If the agreement isn’t reinstated, thousands of Winona and La Crosse-area commuters will have to file returns in both states and could pay an average of $300 more per year in taxes.

For more, see Friday’s Daily News.

Related

• Interstate commuters to pay more in state taxes
• Local lawmakers fight for tax reciprocity