In the face of threatened retaliation by Kansas lawmakers and Gov. Kathleen Sebelius, Missouri Gov. Matt Blunt says he favors repealing a recently enacted tax increase on Kansans and other out-of-state residents who work in Missouri, according to The Associated Press. When Blunt signed the tax hike into law in July, he said he was only concerned about other parts of the bill lowering taxes for some Missourians, not the impact the measure might have on non-Missourians.
A provision of HB 444 eliminated a provision in state law that allowed non-Missouri residents who work in Missouri to deduct home-state property taxes from their Missouri income taxes. As a result, some Kansas lawmakers suggested eliminating a similar deduction enjoyed by Missourians who work in Kansas. In an Aug. 9 letter to Sebelius, Blunt said he supports restoring the exemption during the 2008 legislative session.
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