In 2019, the Kansas Association of REALTORS® (KAR)
and KCRAR are working together to stop a hidden state income tax increase on
Kansas homeowners. If the Kansas Legislature does not pass legislation during
the 2019 Legislative Session to stop this hidden income tax increase, Kansas
homeowners will pay $30 million more in state income taxes.
This $30 million hidden income tax increase is due
to the fact that Kansas state law does not allow taxpayers who claim the
standard deduction on their federal income tax returns to claim itemized
deductions (such as the mortgage interest, charitable and property tax
deductions) on their income tax returns. If taxpayers claim the standard
deduction on their federal income tax returns, they are forced to claim the
standard deduction on their state income tax returns.
Many Kansas homeowners are forced to pay higher
state income taxes since they are unable to claim the mortgage interest and
property tax deductions on their state income tax returns. If this effort is
successful, Kansas homeowners would always have the option of claiming these
itemized deductions on their state income tax returns, even if they claimed the
standard deduction and did not itemize at the federal level.
“As the Kansas Legislature begins work this week,
all REALTORS® need to remind their legislators that this issue is very
important to homeowners,” KCRAR President Steve Moyer said. “Homeownership is a
cornerstone of the American Dream, and the last thing we should be doing is
burdening homeowners with millions of dollars in hidden state income tax
According to a recent statewide poll conducted for
the Kansas Association of REALTORS®, 72 percent of Kansas voters support the
proposal to preserve the ability of Kansas homeowners to itemize on their state
income taxes. Nearly two-thirds of voters (64 percent) believe that a failure
to preserve these itemized deductions will harm the Kansas economy.
“If the Kansas Legislature does not act, thousands
of Kansas homeowners will be locked out of claiming the mortgage interest and
property tax deductions in 2019,” KCRAR and HMLS CEO Kipp Cooper said. “All
Kansas City REALTORS® need to come together to help us push for this change and
save homeowners from this $30 million hidden state income tax increase.”