Bill to reverse tax increase on nonresidents gets OK from lawmakers

Tuesday, April 29, 2008 | 4:13 p.m. CDT; updated 7:27 p.m. CDT, Monday, July 21, 2008

JEFFERSON CITY — Missouri lawmakers settled a dispute with Kansas today by passing legislation that could reverse a tax increase on nonresidents working in Missouri.

Until last year, residents of other states working in Missouri could deduct their home property taxes when itemizing their Missouri income taxes. That's the same break granted to Missouri residents.

Missouri lawmakers halted the nonresident tax break to make the state's policy match that of Illinois.

But that put Missouri at odds with Kansas, where officials threatened to retaliate by raising taxes on Missourians who commute there to work.

The bill sent to Missouri's governor today again would grant the tax break to nonresidents whose state gives a similar break to Missourians.

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