Reported in today’s Kansas City Star (go out an buy a copy)…
The first shot was fired by Missouri when Gov. Matt Blunt signed a bill this month providing an income tax break for Missourians who receive Social Security. It contained a little-discussed provision eliminating a deduction for real estate taxes paid outside Missouri.
That’s a $190 ding for the typical Johnson County resident who works in Missouri.
When someone asked Governor Matt Blunt of Missouri about the tax that screws Kansans his response was again reported in the Star as…
Blunt said he was the governor of Missouri and his focus was on reducing taxes for Missouri residents.
As someone who has to pay some Missouri taxes, this is just stupid. Why? Because when Kansas inevitably responds, here are the numbers
Based on commuting patterns, Johnson County’s Economic Research Institute estimates that more than 71,000 residents from eight nearby Missouri counties work in Johnson County. And at least 53,000 Johnson Countians work in those Missouri counties.
So by getting taxes from 53,000 JoCo residents the Governor will cost 71,000 of his residents higher taxes. Will Missouri ever learn? This is why there is so little cooperation between the “rich” Johnson County and the “incompetent” Kansas City/Missouri governments.
Nobody asked, and it has nothing to do with real estate investing… No wait, it has everything to do with real estate and real estate investing. More taxes cause higher expenses. Higher expenses cause higher rents and fees. Figure it out. Just my $.02 on the subject.
For you out of town readers Kansas City, Jackson County and the State of Missouri are always trying to figure out how to screw Johnson County, Kansas. When they did a study and found out the majority of ticket buyers to the Chiefs and Royals were Johnson Countians they added a per seat tax. Then they “locked out” Kansas ticket buyers for the perennially sold out Chiefs until all the Jackson County residents who wanted tickets had tickets. (Not that Jackson County can support the Chiefs all by themselves.)
Then there is the City payroll tax. The bi-state tax and the never ending attempt to get Johnson County to further subsidize Kansas City, Missouri. I’m all for civic cooperation, realizing we all have a stake in this metropolitan area. It would help is stupid policies like these weren’t instituted. It just builds further resentment.