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Politics Northwest

The Seattle Times political team explores national, state and local politics.

December 16, 2014 at 5:31 PM

U.S. Senate extends state’s sales tax deduction for another year

The U.S. Senate Tuesday night passed a last-minute bill extending dozens of temporary tax breaks, including the one that allows Washington state residents to deduct sales taxes on their federal tax returns.

The vote was 76-16.

The bill would enable millions of businesses and individuals to claim the tax breaks on their 2014 tax returns. Beyond this year, their fate is uncertain.

The bill now goes to President Obama, who is expected to sign it.

The 54 tax breaks benefit big corporations and small businesses, as well as struggling homeowners and people who live in states without a state income tax, such as Washington.

“This legislation before us tonight includes making sure that we’re able to deduct the state sales tax from our federal tax obligations,” Sen. Maria Cantwell said in a statement. “I hope we’ll be here someday when we can get permanent tax fairness into the code – that this is permanent provision. That we don’t have to come back every year and get the tax fairness our states deserve.”

Comments | More in Congress, U.S. Senate | Topics: federal taxes, sales tax deduction

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