The state of Wisconsin could be forced to pay $975 thousand in interest to the state of Minnesota if the Badger State waits until July 1st to make a $58 million payment.
In 2009, Minnesota ended an arrangement known as tax reciprocity, and told Wisconsin it would have to pay. Acting Minnesota Revenue Commissioner Dan Salomone says Wisconsin missed a December 1st payment and now owes interest. He says Wisconsin budget officials told him they couldn’t make the payment because of the state’s budget situation and intend to pay at the start of the next fiscal year.
“The interest is going to be running on a daily basis at $4600 so I assume we will not settle for anything less than the payment that is owed plus all of that accumulated interest.”
Salomone says Governor Dayton intends to write a letter to Scott Walker, the newly elected governor of Wisconsin, to encourage him to make the payment soon. Wisconsin officials say they’re reviewing the situation.