Texans Await Action On Sales Tax Exemption For Federal Tax Returns

Posted by Staff | @CorridorNews | @Corridor_Sports

Texans could keep their federal income tax deduction for state and local sales taxes if the U.S. Senate approves a tax break measure that passed the U.S. House this week. House members voted to extend a provision that affects Texas and other states that do not collect a state income tax.

Texas is one of seven states that do not impose a state income tax and instead have been able to deduct state and local sales taxes from their federal income tax returns. A reported 2.3 million Texans used the sales tax deduction on their 2012 income tax filings. Passage in the Senate is not a shoe-in as this tax break extension is part of a much larger comprehensive tax bill. 

Lawmakers recently scrapped their initial $450 billion tax package after threats of a Presidential veto. That bill would have made the sales tax exemption permanent for Texas and six other states.

This story originally published on Texas Govenment Insider