Published on -12/12/2013, 10:33 AM
A coalition of groups in Kansas is currently working to repeal the tax charged by Kansas counties to record mortgages on real property, commonly known as the mortgage registration tax.
Kansas is one of only nine states to levy this tax. The tax is based on the amount of the mortgage being recorded and is separate and apart from the recording fee (a flat fee designed to cover the costs of recording at the county register of deeds office).
The mortgage tax is $2.60 per each $1,000 of the mortgage amount, or $520 for a $200,000 mortgage. Borrowers not needing to obtain a mortgage to acquire real estate, obviously, are not subject to the tax.
As a result, the tax discriminates against those who must borrow. Some borrowers are not subject to the tax at all based on the source of their borrowed funds or lender.
The Kansas Bankers Association is part of the coalition working to repeal the mortgage tax and we support their efforts.
Wayne Woofter, Emprise Bank Hays market president