Jay Inslee: Washington's 1st Congressional District

Issues

Sales Tax Deduction Passes House

7 October 2004

Members of the Washington State Congressional delegation expressed their support this evening for the successful passage of a provision to reinstate the sales tax deduction for Washington state residents in the House of Representatives. The sales tax provision was included in the conference report for H.R. 4520, a corporate tax bill which passed the House this evening by a vote of 280 to 141. The members also recognized U.S. Rep. Brian Baird (WA-03) as the leading force behind this provision over the past several years.

"Rep. Baird has been leading our fight for the sales tax deduction for the past six years, and today his work is close to paying off for Washington State taxpayers. If this bill becomes law, Washington State taxpayers will be able to deduct their state and local sales tax from their federal tax returns," said U.S. Rep. Jay Inslee (WA-01).

The sales tax deduction provision will be effective for two years, starting this tax year. It allows Washington state taxpayers to take this deduction by using either receipts to itemize deductions, or by using tables created by the Secretary of Treasury. Taxpayers who choose to itemize are expected to save $300-$500 per year, while those who use the tables may also deduct sales taxes paid on motor vehicles and other big ticket items specified by the Secretary. Washington State will benefit by at least 500 million dollars per year.