K.C. Lawmakers Want Tax Repealed

Two Kansas City state representatives plan to introduce an amendment during this week's special session to repeal a tax increase recently imposed on out-of-state residents who work in Missouri, according to a press release.

"Gov. Matt Blunt last month signed into law a bill that eliminated a statutory provision that allowed non-Missouri residents who work in this state to deduct home-state property taxes from their Missouri income taxes. Many Kansas lawmakers have threatened to retaliate by eliminating a similar exemption provided to Missourians who work in Kansas," according to a release sent out by State Reps. Mike Talboy and Ryan Silvey of Kansas City.

Talboy is a Democrat; Silvey is a Republican.

“We must not let this issue escalate into a border war,” said Silvey. “Cooperation with our neighboring states is important to improving Missouri’s economy. This tax was a step in the wrong direction.”

In an Aug. 9 letter, Kansas Gov. Kathleen Sebelius asked Blunt to urge the Missouri General Assembly to repeal the tax, which affects “tens of thousands of Kansans.” Sebelius said Missouri’s action “runs directly counter to our attempts at greater collaboration and threatens to hamper future cooperation” between the two states. Sebelius also said retaliatory legislation “would likely have significant support in the Kansas Legislature.” In response letter to Sebelius, Blunt pledged his support for eliminating the tax.

“This tax tells the many professionals who live in Kansas but work in Missouri that they aren’t welcome here and could encourage them to relocate their offices to the western side of the border,” Talboy said. “The first rule of economic development is to keep the jobs you have. If this tax remains in place, the negative ramifications for Missourians may far outweigh any benefits to the state treasury.”

Talboy said Missouri should repeal the tax increase before it takes effect on Aug. 28. Doing so in the economic development bill would be the appropriate given the potential impact the tax could have on Missouri’s economy.