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Governor Sam Brownback wants to end two tax deductions from Kansas' income tax. Realtors call the governor's plan to change homeowners' taxes bad news for the state's economy.
"Values are starting to recover, sales are starting to recover, we don't think that now's a very good time to mess with the housing market," said Tessa Hultz, CEO of the Wichita Area Association of Realtors.
You may have seen a full page ad in the Wichita Eagle Wednesday explaining why Kansas realtors think ending the deduction you get for the interest you pay on your mortgage is bad news. Or, maybe you heard a radio ad.
At the same time Eyewitness News learned Governor Brownback wants to get rid of a second tax deduction currently available to homeowners.
"Purchasing a home is a big confidence issue," said Hultz.
And many Kansans, like homeowner Nick White, aren't confident right now.
"It would be definitely something we have to think about and consider," said White.
They're worried about how much the loss of the tax deduction would cost them.
Realtors say the change would amount to an extra $300+ for owners of a $116,000 house, the median price for homes sold last year.
"It's not a large amount of money. It's the perception that you're changing the tax code that affects housing," said Hultz.
The housing market has slowly improved over the last couple of years. But buyers are still cautious.
Last month a survey by the Kansas Realtors Association found 70% of Kansas voters thought ending the mortgage interest rate deduction would hurt the housing market.
"If 70% of your citizens think that the housing market is about to go down, it's probably about to go down," said Hultz.
Then, news the governor also wants to remove the deduction you get for what you pay in property taxes. It surprised state legislators and local realtors on Wednesday.
"Removing the two of them together at the same time is a disaster for housing," said Hultz.
Realtors say these two changes would mean fewer buyers. The whole idea is enough to make Wichitans like White re-consider purchasing a home.
"I'd have to think about just to stay in apartments or stay in town homes," said White. "Just to stick with those kind of things instead of buying a home."
Kansas realtors will be taking their fight to topeka next month. They plan to host a rally at the statehouse on February 13th urging legislators to vote down the governor's proposals.
Opponents of the governor's proposal are calling it a hike in taxes on the middle class. More than two-thirds of those who use the two deductions make less than $100,000 a year according to the 2010 Census.