House of Representatives                     P.O. Box 40600

Office of Program Research            Olympia WA 98504-0600

Finance Committee                        Phone 360-786-7100

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HJM 4001

Bill Analysis

January 26, 1999

Brief Description:  Petitioning Congress to reinstate income tax deduction for state sales tax.

Bill Sponsors: Representatives O'Brien, Clements, Doumit, Ballasiotes, Lovick, Sheahan, Anderson, Wensman, Dickerson, DeBolt, Conway, Alexander, Tokuda, Grant, Skinner, Scott, McMorris, Regala, Wood, Constantine, Kessler, Stensen, Carrell, Bush, Kenney, Carlson, Barlean, Hurst, Lantz, Ogden, Mitchell, Campbell, H. Sommers, D. Schmidt, Dunn, Santos, Edmonds, Esser and McIntire.

           Brief Summary of HJM 4001

CAsks Congress to restore the itemized deduction for sales taxes.

Staff: Rick Peterson, 786-7150.

Background:  In 1986, federal tax reform removed the itemized deduction for state and local sales taxes.  State and local income taxes and property taxes continued to be allowable itemized deductions.

Summary of Bill: Memorializes Congress to restore the itemized deduction for sales taxes.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.