In Kansas in years past, mortgage registration tax was charged by the State of Kansas for the filing of a mortgage at the county register of deed’s office. This tax was based upon the size of the mortgage and had to be paid at the time of filing the mortgage. In the last year of its existence, a residential mortgage in the amount of $100,000 would result in a tax in the amount of $50.00. As you can see, this amount can quickly multiply on larger mortgages. Additionally, a filing fee based upon the number of pages to be filed was charged along with the mortgage registration tax. A standard, thirty-year mortgage typically results in a filing fee of anywhere from $100.00 to $350.00. These fees will typically show up as financing charges or “closing costs” on a settlement statement. In my experience, most individuals were not aware of the fees until they reviewed their closing statements. It was usually a shock for buyers to learn that they had to pay a couple hundred dollars simply to file a document at the register of deeds.
A few years ago, several homeowner, realtor and homebuilding groups lobbied State Legislators for the repeal of the mortgage registration tax. Their efforts were successful, and the tax was phased out over a few years until now. Beginning on January 1, 2019, mortgage registration tax is no longer charged in Kansas. This means immediate savings for homebuyers and homeowners that are refinancing their existing loans. Additionally, the filing fees charged at the register of deeds will not increase in 2019. Again, this is helpful to the Kansas home buyer and homeowner. Should you have any questions regarding the repeal of the mortgage registration tax or the current filing fees, feel free to contact Tallgrass Title.