Federal Sales Tax Exemption Passes the House
Multi-State: The House of Representatives passed House Bill 622 April 16, 2015.
The bill would make certain state and local sales taxes deductions permanent. These tax breaks typically expire each year and are renewed at the last minute by Congress. As previous House bills continue to renew the majority of the 55 tax extensions, Congress is negotiating how to make these cuts permanent. The current method of renewing each year puts added complication on financial planners to anticipate tax requirements for their companies. Among the changes, this would allow residents in states without state income tax to deduct state sales taxes. Though not the overall tax reform many in Congress would like to see, these changes could have some building momentum.
In the House, the sales tax legislation passed 272-152; which is not high enough to reach the two-thirds majority vote to override veto power. Now the bill goes to the Senate where Republicans hold 54 seats. Democrats in the Senate are already voicing opinions that this is not the solution they would like to see as it only deals with a small portion of the needed tax reform rather than taking on broad reform.
About Davis & Davis LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis & Davis LLC – Sales Tax Experts specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis & Davis we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.
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