June 4, 2004
State Lawmakers Laud Efforts on Sales Tax Deductibility
WASHINGTON, D.C. - The National Conference of State Legislatures
expressed its strong support today for a provision in the revised American
Jobs Creation Act of 2004 (H.R. 4520) that would allow taxpayers to deduct
their state and local sales taxes from their federal tax liability.
“The enactment of the sales tax deductibility provision has been a
long-standing goal of the National Conference of State Legislatures for,”
said Pennsylvania Representative David Steil, chair of NCSL’s Budgets and
Revenues Committee. “The inclusion of the deductibility provision in
this legislation is a major victory for state taxpayers.”
Prior to the enactment of the Tax Reform Act of 1986, federal income
tax filers could deduct four types of state and local taxes - individual
income taxes, real property taxes, personal property taxes and sales
taxes. The Tax Reform Act of 1986 disallowed the itemized deduction
of state and local sales taxes placing taxpayers in the states which do
not levy a personal income tax at a significant disadvantage.
“The sales tax deductibility provision will restore a certain level of
fairness and equity to the federal tax system,” Steil said. “NCSL
applauds the efforts of U.S. Representative Kevin Brady for his leadership
on this issue.”
NCSL is the bipartisan organization that serves the legislators and
staffs of the states, commonwealths and territories. It provides research,
technical assistance and opportunities for policymakers to exchange ideas
on the most pressing state issues and is an effective and respected
advocate for the interests of the states in the American federal
system.
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