Multistate – House Ways And Means Committee Passes Bill HR 622 To Make Sales Tax Deduction Permanent

Salt Report 3561 – On February 12, 2015 The House Ways and Means Committee passed HR 622 by a 22 – 14 vote.   The bill is sponsored by Texas Representative Kevin R Brady (R- The Woodlands).  The bill would make the expiring sales and use tax deduction permanent.  The sales tax deduction on the federal income tax return is set to expire after this April 15 tax filing and will not be available for 2015 or subsequent years.  This deduction is especially important in states that do not have an income tax – presently a taxpayer can choose between income or sales tax deduction.  Although the income tax deductibility is permanent the sales tax option is set to expire.  States with no income tax such as Texas, Washington, Florida and Nevada stand to lose a substantial deduction with nothing to replace it.

Further Information:

HR 622 PERMANENT EXTENSION OF DEDUCTION OF STATE AND LOCAL SALES TAX

http://trailblazersblog.dallasnews.com/2015/02/house-ways-and-means-passes-bill-to-make-sales-tax-deduction-permanent.html/

The PEW Charitable Trusts – The Distribution of Select Federal Tax Deductions and Credits Across the State (2012)