Congressman Denny Heck Urges House Passage of Sales Tax Deduction

WASHINGTON, D.C. – Today U.S. Representative Denny Heck (WA-10) released the following statement regarding the anticipated vote Wednesday, December 3, on the short-term tax extenders package, which includes the extension of deductions for state and local general sales taxes (H.R. 5771, Section 105):

“I am pleased that this bill reinstates a short-term extension of state and local sales tax deductions for American taxpayers, but I firmly believe the House and Senate should also work to make this tax provision permanent. A lasting law on the books delivers certainty for the residents of Washington that their tax contributions will be honored, and ensures they have disposable income that boosts the state and local economy, giving renewed strength to the local job market.

“Congress should cement the promise of tax fairness by keeping the sales tax deduction intact for good. Let Washington’s tax dollars be treated the same way as taxes in other states.”

Background

The American Taxpayer Relief Act of 2012 (P.L. 112-240) extended the sales tax deduction option through the 2013 tax year, but it has since been allowed to expire.

Data on the economic impact of the sales tax deduction in WA (via Pew Charitable Trusts):

• The average deduction per Washington filer in 2012 was $602.
• The deduction claim rate in Washington was 27.7%, the highest among all states with limited or no income tax.

According to 2012 IRS data, total amount claimed in Washington for the “state and local general sales taxes” itemized deduction category was $1.952 billion.