Letter to the Editor 12-6-13
Mortgage Registration Fee Places Unfair Tax Burden on Borrowers
Did you know that Kansas is one of only nine states that impose a fee, which Kansas courts have declared a tax, on purchasers of real estate when they take out a loan to finance that purchase? A person who has cash to purchase a home or land isn't required to pay the tax. Additionally, borrowers who utilize government sponsored lenders, such as Farm Credit are not subjected to the mortgage registration tax. In other words, the mortgage registration tax is not fairly applied to all borrowers, let alone to those who use cash to make their purchase. In Kansas, purchasers of real estate requiring financing from a community bank, savings and loan, or credit union must pay a tax of $0.26 per 100 dollars of indebtedness . On a typical $150,000 home loan it adds an additional $390 to the borrower's closing costs. On a farm or commercial real estate purchase it can literally add thousands of dollars to the borrower's closing costs. Almost all of the tax, ($0.25 per $100 borrowed), goes directly to the general fund of the county where the property is located.
This begs the question: why does Kansas tax policy discriminate against certain individuals who need to borrow money to purchase real estate? This tax singles out a small segment of the population for unfair tax treatment. It isn't a coincidence that 41 states across the nation don't impose this tax. A mortgage registration tax penalizes those who seek to invest in their community and grow equity for their future.
The mortgage registration tax should not be confused with the mortgage recording fee that is also paid by the borrower. The mortgage recording fee is also payable at closing and was specifically established to cover the costs associated with recording mortgage documents. The mortgage registration fee (K.S.A. 79-3102) that we are working to repeal is a tax in addition to the mortgage recording fee ( K.S.A. 28-115). Since both are required to be paid before the mortgage is filed, a borrower essentially pays twice to record the same mortgage.
The Kansas Bankers Association is part of a coalition working to eliminate this unfair tax to bring equity to Kansas borrowers. Fair tax policy is possible and now is the time to level the playing field for all Kansans.
Chuck Stones, President/CEO
Kansas Bankers Association
Dear Editor, Questions that need answers? 1. Why should we sign up for the Special Civility Pledge? 2. Isn't the “Bill of Rights” still acceptable? 3. Aren't the Ten Commandments still taught? 4. What happened to the... [More]
Police Dept. Report Damage to property—Darci J. Elliott, Concordia, reported Damage to Property at 7:35 a.m., April 22. Damage occurred sometime in the last 48 hours in the 400 block of West 16th St. Fire Dept./EMS Report At 9:12 p.m., Tuesday, Medic-5 responded to the... [More]
By Sharon Coy Blade Staff Writer When Susan Sutton, Cloud County Community College Dean of Humanities, was a student at CCCC a seed for her love of the theatre was planted. Although she had never taken part in plays in high school and her only drama experience had... [More]
Whereas, Cloud County Community College, The Brown Grand Theatre, the National Orphan Train Complex and many other organizations and causes have benefited immeasurably from the dedication and skill of Susan Sutton; and Whereas, Susan Sutton has for 39 years enlivened the... [More]
SALINA – Kylie Trobee scored three runs and drove in four in the Cloud County Community College softball team's 18-0 win over Brown Mackie here yesterday. The win completed a doubleheader sweep; the T-Birds won game one 13-0. Cloud County got started early in the finale... [More]
ABILENE – The Concordia High School golf team led by Grant Holmes finished third in the Abilene Invitational on Tuesday. The Panthers finished with a team score of 336 and finished behind Wamego (322) and Abilene (327). Holmes shot 81 and finished in sixth place. Marcus... [More]
- Rimrodt wins Abilene tournament
- CJHS track team compete in Beloit
- Swanson, Wallace record first-place finishes
- Panthers split doubleheader with Sacred Heart
- CHS softball gets first win of season
- JV softball gets one win
- Two ConKids wrestlers place first
- Wrestling club has six place in state tournament