Press Releases

Jaime Herrera Beutler Helps Secure Making State and Local Sales Tax Deduction Permanent in Tax Agreement

U.S. House approves provision to provide fairness in the tax code and permanent relief to Southwest Washington residents

f t # e
Washington, DC, December 17, 2015 | comments
Today, U.S. House of Representatives passed the House- Senate negotiated agreement on a tax reform bill that includes the permanent extension of the state and local sales tax deduction – critical tax relief that Jaime has championed since coming to Congress. Jaime voted with a bipartisan majority of the U.S. House to pass the bill with a vote of 318 - 109.
share: f t

Click here to watch Jaime urge the U.S. House to permanently extend the state and local sales tax earlier this year. 

WASHINGTON, DC – Today, U.S. House of Representatives passed the House- Senate negotiated agreement on a tax reform bill that includes the permanent extension of the state and local sales tax deduction – critical tax relief that Jaime has championed since coming to Congress. Jaime voted with a bipartisan majority of the U.S. House to pass the bill with a vote of 318 - 109.  

The state and local sales tax deduction allows residents of states without a state income tax, like Washington, to deduct state and local sales tax from their federal tax returns. Residents of states with income tax are able to deduct that from their federal taxes. 

For the past several years, Congress has passed only short-term extensions of the sales tax deduction at the 11th hour.  The provision is widely used by Washington residents; in 2012, 27.7% of Washington state filers used the sales tax deduction, saving this state’s taxpayers more than $2 billion. The average claim was $602. 

Etching this the state and local sales tax deduction into permanent tax code would eliminate the uncertainty that individuals and families face due to frequent short-term extensions.  

“Residents from over 40 states get to deduct their state income tax from their federal taxes, and now, through the permanent extension of the state and local sales tax deduction, Washington state families can know that they will get to keep more of their money too,” said Jaime. “This solution gives fairness in the tax code to Southwest Washington families who have already dutifully paid their taxes. A mom from Chehalis can spend that money –averaging $602 – on the things that matter to her family.”

This provision was part of a larger package of tax relief provisions including permanent extension of the Research and Development Credit and all charitable giving deductions. The bill also included taxpayer protection and IRS accountability provisions; the Taxpayer Bill of Rights that establishes the right of taxpayers to challenge the IRS and appeal their decision,  the IRS Email Transparency Act that prohibits the IRS from using personal email accounts to conduct government business, the Contracting Tax Accountability Act that prohibits companies with significant tax debt to receive government contracts and the Federal Employee Tax Accountability Act that prevents the federal government from hiring individuals who have not paid their taxes.

f t # e