Iowans who cross the border to work in Missouri will be paying higher taxes this year. Thanks to a new state law in Missouri, Iowans will no longer be allowed to deduct their Iowa property taxes when they pay income tax in Missouri. Mike Lipsman at the Iowa Department of Revenue says they have a pretty good idea how many Iowans will be affected.
"There are about 1,700 Iowans…that work in Missouri," he says. "On average, about half of the people in Iowa itemize their deductions, so it will affect about 850 people." So how much of a tax hike will that group see?
Lipsman estimates those 850 Iowans will see their Missouri tax bill go up by about 150 dollars, on average. The outcry has been greater elsewhere, especially in Kansas where thousands of residents cross the state line into Missouri to work in Kansas City. In all, the new restriction will generate about 14 million dollars for the Missouri state treasury.
