HOUSE BILL REPORT

HJM 4012

BYRepresentatives Brumsickle, Bowman, Schmidt, Youngsman, Patrick, Ballard, Betrozoff, Walker, Silver, McLean, Smith, Grant, Fuhrman, Brough, Phillips, Horn, Holland, Morris, Beck, Padden, Tate, Schoon, D. Sommers, Moyer, Kremen, P. King, Wineberry, Pruitt, Sayan, Winsley, Miller, Rayburn, K. Wilson, May, Inslee, Raiter, Hine, Spanel, G. Fisher, Rasmussen and Wood

Petitioning Congress to restore the deductibility of the retail sales tax.

House Committe on Revenue

Majority Report:  Do pass. (13)

      Signed by Representatives Pruitt, Vice Chair; Holland, Ranking Republican Member; Horn, Assistant Ranking Republican Member; Basich, Brumsickle, Fraser, Fuhrman, Grant, Haugen, Morris, Phillips, Rust and H. Sommers.

House Staff:Robin Appleford and Bob Longman (786-7136)

AS PASSED HOUSE JANUARY 22, 1990

BACKGROUND:

Before 1986, state and local sales tax payments were allowed as itemized deductions under the federal income tax.  The federal Tax Reform Act of 1986 eliminated the deduction for state and local sales taxes.  State and local income taxes, however, are still allowed as itemized deductions.

SUMMARY:

Congress is requested to amend the federal Internal Revenue Code to restore the deductibility of sales tax payments when determining federal income tax liability. 

Fiscal Note:      Requested February 15, 1989.

House Committee ‑ Testified For:    No one.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    None.

House Committee - Testimony Against:      None.