By Derek Ramsay, KCRAR VP of REALTOR® Advocacy
Earlier this week, the Kansas legislature overrode Governor Laura Kelly’s veto of Senate Bill 50. In doing so, the lawmakers sent a clear message that homeownership matters in Kansas.
Among other provisions, Senate Bill 50 will allow income taxpayers in Kansas to itemize their state tax filing and claim state level income tax deductions, including the mortgage interest deduction and property tax deduction, regardless of whether or not they itemize their federal income tax filing. This decoupling of federal and state income tax filings will allow Kansans to make the best decisions for themselves at tax time and encourage homeownership in the Sunflower State.
The Kansas Association of REALTORS® (KAR) has been working with lawmakers and others on this tax fairness issue since 2018.
“Due to unintended consequences of federal tax reform, many Kansas taxpayers lost the ability to itemize deductions,” said Mark Tomb, KAR Vice President of Governmental Relations. “This legislation provides meaningful relief to these taxpayers, something that is long overdue.”
Homeownership is the cornerstone of the American Dream and deserves a preferred place in our system of values. The mortgage interest deduction and property tax deduction are favorable tax policies for Kansas homeowners, making homeownership more affordable and playing an important role in the overall Kansas economy.
Note: Missouri taxpayers who take the standard deduction on their federal tax return are required to use it on their state tax return as well.