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Last month, Gov. Mark Dayton vetoed a bill that included the same cuts in state aid to cities, saying it would <br /> drive up local property taxes. <br /> Ortman said her bill "sets the ground for a compromise with the governor" because property tax increases would <br /> be "minimal," and it's part of a comprehensive budget-balancing package, not the "piecemeal approach" that <br /> Dayton criticized in his veto message. <br /> The Senate bill would allow cities with voter approval to levy a half-cent local sales tax to finance public <br /> works projects, such as civic centers, libraries, parks, trails, roads, bridges, flood-control structures and police <br /> and fire stations. They could not, however, use the sales tax revenue to cover operating costs. <br /> For Minnesota and Wisconsin taxpayers who live in one state and work in the other, the bill directs the state <br /> revenue commissioner to negotiate with his Badger State counterpart to reinstate income tax reciprocity so <br /> border crossers could file just one state income tax return. That's also in the House bill. Minnesota officials <br /> scrapped a long-standing tax reciprocity agreement in 2009 to help balance the budget. <br /> The Tax Committee is scheduled to hear public testimony on Ortman's bill today and vote on it Friday. <br />