To the Editor:
As you may be aware, a coalition of groups in Kansas is working to repeal the tax charged to record mortgages on real property. Kansas is one of only nine states to levy this tax. This tax is based on the amount of the mortgage being recorded and is separate and apart from the recording fee which is a flat fee designed to cover the costs of recording.
The mortgage tax is $2.60 per each thousand dollars of the mortgage amount, or $390 for a $150,000 mortgage. This tax is, on its face, unfair. Two neighbors who buy identical homes may end up paying very different amounts of taxes simply because one can pay cash and the other needs to borrow. Obviously, they will both drive on the same roads and be protected by the same sheriff. It is not fair and it is not right.
The Kansas Bankers Association is part of the coalition working to repeal the mortgage tax and we support their efforts.