S-4018               _______________________________________________

                                   SENATE CONCURRENT RESOLUTION NO. 8426

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Talmadge, Moore and Conner

Read first time 1/20/88 and referred to Committee on Law & Justice.

WHEREAS, The federal Tax Reform Act of 1986 repealed the federal tax deduction for state sales taxes, while continuing the deductibility of state income taxes; and

          WHEREAS, By limiting the revenue options available to the states, this unequal treatment of state taxes adversely affects the ability of states to raise revenue; and

          WHEREAS, The federal law discriminates against residents of states, such as Washington, that derive a large portion of their revenue through sales taxes;

          NOW, THEREFORE, BE IT RESOLVED, By the Senate of the State of Washington, the House of Representatives concurring, That the Attorney General of the state is urged to bring suit against the United States on behalf of individual taxpayers of the state. The purpose of the suit shall be to overturn the unequal treatment of state taxes under the federal Tax Reform Act of 1986 and to restore the deductibility of state sales taxes; and

          BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted to the state Attorney General.