ST. PAUL -- Minnesota would keep its reciprocal income-tax agreement with Wisconsin under the deficit-reduction bill Minnesota lawmakers approved this week.
Gov. Jesse Ventura proposed ending the income-tax agreement between the two states to help make up the state's projected $2 billion budget shortfall.
Ventura could still veto the budget bill that Minnesota legislators delivered to him Friday.
Wisconsin revenue officials said their state would lose $84 million during the first two years, if the agreement ended.
Minnesota residents would have to pay $2 million to $3 million in additional taxes annually, according to the Minnesota Department of Revenue.
Under reciprocity, a person who crosses the state line to work pays income taxes in his home state, which then reimburses the other state.
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