By Marshall Griffin, KWMU
Jefferson City, MO – The Missouri House has given final approval to a bill that would restore a tax break for out-of-state residents who work in Missouri.
Last year, lawmakers passed legislation that cut taxes on retirement benefits, but the bill included language that removed a tax deduction for Kansas residents who work in Missouri.
It affects Kansans who cross the state line to work for Missouri-based employers, primarily in the Kansas City area.
As a result, Kansas lawmakers have threatened to increase the tax burden on Missourians who work in the Sunflower State.
House Minority Leader Paul LeVota (D, Independence) sponsored a bill that would restore the tax deduction.
"We need to cooperate economically...we'll fight each other on the basketball court and the football field, but when it comes to economic issues and punitive taxes, we're (going to) try to work together," LeVota said.
The bill is also strongly supported by Republicans, including House Speaker Rod Jetton (R, Marble Hill).
"The Senate in Kansas is willing to hold off and not make (their) bill go into effect as law, as long as we can keep progressing...but they are poised and ready to pass a bill that would damage and hurt citizens all around the borders of our state if we don't proceed," Jetton told House members before voting.
The Missouri bill restoring the tax deduction passed unanimously, 145-0, and is now on its way to the State Senate.