Intangible tax

On the ballot for this year’s elections, Tuesday, Nov. 5, there will be a question on the ballot eliminating the tax on gross earnings derived from savings accounts, stocks and bonds (intangible tax). The intangible tax was created by the Kansas legislature in the early 1980 s as a way for cities and counties to reduce their reliance on property tax.

Jewell County along with the cities of Burr Oak, Esbon, Jewell, and Mankato along with 14 townships in Jewell all have an intangible tax of varying rates. All of the cities, including Mankato, have a rate of 2.25 percent.

The legislature created this tax to reduce property tax, the elimination of this tax will increase property tax to make up for the loss of the intangible tax. The intangible tax is estimated to generate $11,374 for the 2025 budget year. Should the question pass (a yes vote) I estimate that the mill rate will increase by around 2.6347 mills. On a house valued at $100,000 this will result in a $30.29 increase in property taxes.

My hope is that this information will assist the residents of Mankato in making a decision come Tuesday, Nov. 5. If you have any questions in regard to this or any other city issues please contact City Hall at 1-785-378-3141.

 

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