An income tax border war

It’s not as if Kansans and Missourians needed something else to quarrel about.

People who live along the border separating the states have been fighting since even before Kansas was admitted to the Union as free state in 1861. …

Residents of Kansas and Missouri have been traveling across the border for years to go work, then crossing it again in the evening to go home.

And in recent times, both states have allowed those who go back and forth to deduct the property taxes they pay on their homes when calculating the income taxes they owe the state where they work.

That sounds confusing, but it means Kansans who work in Missouri could deduct property taxes they pay on their Kansas home when computing their Missouri income taxes. Missourians working in Kansas likewise could deduct their Missouri property taxes when calculating Kansas income taxes.

Fair was fair. Until next year.

Missouri has adopted a law that will eliminate the property tax break for Kansans – or residents of any other state – who travel to Missouri to work. …

The good news for Kansans who work in Missouri is that they’re unlikely to be out any cash, because they can deduct on their Kansas income tax forms the income tax they pay in Missouri.

But if the new Missouri law stands, the state of Kansas will lose about $5 million in annual income tax revenue. …

Gov. Kathleen Sebelius has suggested Missouri Gov. Matt Blunt ask lawmakers there to repeal the tax increase on nonresidents. That was a good first step and the right one to take, especially as Blunt appeared willing to support a repeal of the tax measure.

But Missouri legislators aren’t sounding so conciliatory and appear pleased will their new law.

If they remain stubborn, Kansas legislators shouldn’t hesitate to level the playing field once again.