Senators introduce amendment to keep federal deduction of state, local sales tax forever

March 30, 2009

Washington, D.C. – Working to bring long-term economic relief to Nevadans battling the challenging economy, Nevada Senators Harry Reid and John Ensign today introduced a budget amendment that would make permanent the sales and local sales tax deduction that state residents enjoy on their federal income tax return.
 
More than 440,000 Nevadans rely on this deduction for tax relief. The deduction currently is slated to expire after 2009, as the Senate first successfully extended its original sunset date of December 31, 2005.
 
“Every little bit helps when people are trying to stay in their homes and put food on the table for their families,” Reid said. “This sales tax deduction is vital to many Nevadans, especially because they cannot deduct a state income tax on their federal return like residents of many other states. Now is the time to make permanent this important tax break for all Nevadans.”
 
“In these tough economic times, too many Nevadans are hurting,” said Ensign.  “While many struggle to hold onto their jobs and keep their homes, this sales tax deduction will offer a helping hand to many who need one.  Nevadans simply cannot afford for this tax deduction to expire.”