PITTSBURG -- Kansas governor Sam Brownback has proposed eliminating mortgage interest deductions on state income tax returns. Local realtors say the housing market is recovering, but this could potentially be a big blow. While it may not be the only reason people buy a home, realtors say the mortgage interest deduction is a big reason for purchases. They say it may not only impact if people buy a home, but where.
"We already have people that will consider buying across state line because property taxes are cheaper, I hate to take away the mortgage interest deduction as well," says real estate agent Shelly Hilderbrandt.
Both the National Association of Realtors and the Kansas Association of Realtors have come out against eliminating the mortgage interest rate deduction from state income tax returns.