Cantwell Applauds House Passage of Permanent Sales Tax Deduction

Senator has long fought for tax parity to allow Washingtonians to deduct state sales tax on April filings

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA) applauded House passage of legislation that would make the state and local sales tax deduction permanent.

Cantwell and Senator Dean Heller (R-NV) are lead sponsors of Senate legislation that would make the deduction permanent. Other sponsors include: Senators Patty Murray (D-WA), Mike Enzi (R-WY), John Thune (R-SD), John Cornyn (R-TX), Bill Nelson (D-FL), Lamar Alexander (R-TN), and Senate Minority Leader Harry Reid (D-NV).

“Today’s vote in the House takes us one step closer to permanent tax fairness for the 24 percent of Americans who can claim state and local sales tax deductions,” said Cantwell, who sits on the Senate Finance Committee. “That includes residents in Washington state who shouldn’t have to question ever year whether they will be able to make that deduction. This legislation will put money back into local communities and provide certainty and predictability to help grow our economy. I hope my colleagues in the Senate will join me and Senator Heller to quickly pass this bipartisan legislation.”

Washington is among eight states that don’t have an income tax and, therefore, taxpayers can’t claim an income tax deduction on their federal returns. Congress authorized a one-year extension of the sales tax deduction for 2014, meaning taxpayers were able to claim it on their tax returns due April 15. But the deduction will lapse unless Congress renews it again this year.

About 900,000 Washington state taxpayers took advantage of the state sales tax deduction in 2012, reducing their taxable income by $1.9 billion, according to IRS data. Washington state taxpayers saved an average of $602 with the state sales tax deduction in 2012, according to a Pew Charitable Trusts report.