Kansas Governor Sebelius Calls For Repeal Of Missouri’s Tax Increase On Kansans

Letter to Gov. Blunt warns of harm to states’ collaborative efforts

August 9, 2007 -- Last month, Missouri passed a law eliminating a tax deduction that allowed Kansans who work in Missouri to deduct Kansas property taxes from their Missouri income taxes. This change will cost Kansas taxpayers, either directly through higher taxes or indirectly through a reduction in Kansas revenues.

Governor Kathleen Sebelius today sent a letter to Missouri Governor Matt Blunt calling on him to request that the Missouri General Assembly repeal this tax increase.

The text of the letter is as follows:

August 9, 2007

Governor Matt Blunt/
Office of the Governor
Room 216, State Capitol Building
Jefferson City MO 65101

Dear Governor Blunt,

Kansas and Missouri have made great strides in recent years toward increased cooperation in the Kansas City region. Through the Governor’s Summits and other collaborative efforts, we’ve been able to take advantage of our states’ complementary assets to the economic benefit of all.

That’s why I’m disappointed to learn of Missouri’s move to increase taxes on the tens of thousands of Kansans who work in your state. This runs directly counter to our attempts at greater collaboration and threatens to hamper future cooperation.

Kansas legislators are now talking about taking similar action in response to the elimination of Kansans’ ability to deduct real estate taxes from their Missouri income taxes. Such action would likely have significant support in the Kansas Legislature.

As a result, Missouri’s action is likely to have unintended consequences, and is equally likely to threaten our work to promote interstate cooperation and collaboration.

I ask you to avoid such an eventuality by requesting the Missouri General Assembly repeal this tax increase when it next assembles. This would have a limited cost to Missouri, but would go a long way toward enhancing our two states’ ability to cooperate productively in the future.

Sincerely yours,
/S
Kathleen Sebelius
Governor of the State of Kansas

KS/JA/pl

CC: Peter Levi, Greater Kansas City Chamber of Commerce President
Bob Marcusse, Kansas City Area Development Council President and CEO
Gary Forsee, Sprint Chairman and CEO
Don Hall, Jr., Hallmark Cards President and CEO

Source: Kansas Governor

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