State sales tax exemption may disappear

WASHINGTON, D.C. — Washington taxpayers may no longer be able to deduct state sales tax from their federal income tax.

An extension for the deduction was removed from the tax bill in Congress.

Representatives from Washington hope to include the sales tax exemption in another tax relief bill, but Congressman Brian Baird says "It's a little dicey."

The deduction is worth about $500 million a year to Washington taxpayers. It was in place for two years and expired at the end of last year.

It was added to level the playing field as residents of the 41 states that have a state income tax are allowed to deduct that tax from their federal returns. But 9 states do not have a state income tax, including Washington, so those residents miss out on the deduction.

Senator Patty Murray blamed Republicans for making no commitment to on what she calls an issues of fundamental tax fairness. Senator Maria Cantwell says the decision to remove the sales tax exemption from the legislation "outrageous."

The Senate is now debating the $70 billion bill that passed the House Wednesday.