Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Finance Committee

HJM 4020

Brief Description:  Requesting Congress to restore the retail sales tax deduction for the federal income tax.

Sponsors:  Representatives Simpson, Benson, Jarrett, Cooper, Sullivan, Conway, Dunshee, Hunt, Eickmeyer, Quall, Ruderman, Ogden, Fromhold, Cairnes, Morell, Hurst, Mulliken, Santos, Hatfield, Holmquist, Lysen, Pearson, Kessler, Chase, Wood, Esser, Schual‑Berke, Jackley, Darneille, Pflug, Woods, Kenney, McDermott and McIntire.

Brief Summary of Bill

$Asks Congress to restore the itemized deduction for sales taxes.

Hearing Date:  2/6/02

Staff:  Rick Peterson (786‑7150).

Background:

In 1986, federal tax changes removed the itemized deduction for state and local sales taxes on federal income tax returns.  State and local income taxes and property taxes continue to be deductible as itemized deductions.

Three bills have been introduced in the 107^th Congress to restore the itemized deduction for sales taxes.  These bills would allow a deduction for sales taxes in lieu of the deduction for state and local income taxes.

Summary of Bill:

Memorializes Congress to restore the itemized deduction for sales taxes.  Congress is requested to restore the itemized deduction for sales taxes.

Appropriation:  None.

Fiscal Note:  Available.