Sales Tax

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Residents of Texas and six other states would be able to deduct sales taxes on their federal tax returns under the rewrite of corporate tax law that passed the U-S House.

Governor Rick Perry says he's pleased with yesterday's House action. He says it will restore Texans' right to deduct sales taxes from their federal income taxes.

Lawmakers in the seven states without an income tax have sought the sales tax benefit, which was taken away nearly 20 years ago in another federal tax overhaul. The other states are Washington, Tennessee,
Florida, Nevada, South Dakota and Wyoming.

The corporate tax reform was approved on a 280-to-141 vote. Now it heads to the Senate, where it's expected to be approved before the end of the week.