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Mortgage Tax and Recording Fee collection drops in August

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HUTCHINSON, Kan. — Although the county is still ahead for the year thus far, the county collected less with the Mortgage Registration Tax and Recording Fee in August when compared with the same time last year.

These two items will be phased out over the next few years, but for now, the county is still benefiting.

County Administrator Gary Meagher presented the County Commission with the latest numbers that show the county is ahead of last year by $105,000, which is a drop from where they were in July.

In August, the county collected $43,749 for the Mortgage Registration Tax and $12,073 for the Recording Fee. Last year for the same month, the county had collected $50,749 for the mortgage tax and $13,364 for the registration fee.

The state imposes a fee of $2.60 for every $1,000 borrowed to register mortgages and most of the money goes to the 105 counties across the state. But, a new law passed this year will increase other fees, but not enough to offset the losses of the mortgage tax and registration fee to counties. Gov. Sam Brownback signed legislation to phase out the tax and fee by 2019.

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