Tax & Accounting Blog

Tennessee Break On Sales Taxes Close To Expiring

Indirect Tax, ONESOURCE, Sales and Use Tax January 20, 2012

Should Congress not renew the provision, after December 31st, Tennesseans who itemize their federal taxes will no longer be able to deduct the state and local sales taxes they pay.  This provision provides more than 1 billion in tax breaks each year for residents in the state alone, accounting for nearly 526,000 returns.  In place for the last 7 years, six other states who currently don’t have an income tax, but do have a state sales tax, also allow for a similar provision – Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.  Should this expire, taxpayers claiming a deduction for 2011 will not be affected.

 

Source: http://www.tennessean.com/article/20120111/NEWS0201/301110073/Break-on-sales-taxes-could-vanish-for-TN

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