WASHINGTON, D.C.-Today the House of Representatives voted to pass H.R. 622 the State and Local Sales Tax Deduction Fairness Act with Congressman Poe’s support. This legislation would amend the Internal Revenue Code to permanently extend the provision that gives taxpayers the option to take an itemized deduction for State and local general sales taxes in lieu of an itemized deduction for State and local income taxes. The taxpayer may either deduct the actual amount of sales tax paid in the tax year, or, alternatively, an amount prescribed by the Internal Revenue Service.
“Citizens in states without an income tax like my home state of Texas should enjoy the same tax benefits as the rest of the country,” said Rep. Poe. “Right now, a New Yorker can deduct their State income tax from their federal income tax. The playing field should be fair for Texans. This bill will give citizens the option to continue to deduct their sales taxes from their federal income taxes instead. Most importantly, it helps Texans keep more of their own money instead of handing it over to the IRS.”