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Kansas homeowners could soon pay a little more on their mortgages. Governor Sam Brownback wants to get rid of an interest rate deduction.
The move was part of his budget proposal during this week's State of the State address. He says it will help close the budget shortfall and reduce the state's income tax rates.
Tagg Olson with Prudential says the deduction is different on the state and federal level. At the federal level, it makes thousands of dollars per year for a homeowner and taxpayer. It's smaller for the state level.
"The state one is a minuscule percentage of that," Olson said, "and getting smaller as the income tax rates drop."
Olson says they like every advantage they have to try and sell homes, but this deduction is so small, it's not a big deal when compared to the federal deduction.