Floridians Closer to Keeping Sales Tax Deduction

Press Release

U.S. Sen. Bill Nelson today called on House leaders to pass a tax break that would save Florida residents hundreds of dollars each year.

Yesterday, the Senate gave approval to such a measure sought by Nelson and Florida's other U.S. Sen. Mel Martinez.

Specifically, the measure lets Florida residents deduct the state sales taxes they pay from their federal income tax returns, at least for the next two years. The deduction is about to expire absent congressional approval of the two-year extension.

The extension of the popular deduction was included in broader tax legislation passed by the Senate Tuesday; and now, is awaiting action in the U.S. House of Representatives, which could vote as soon as this afternoon or tomorrow.

"Many families have come to depend on this tax break as a way to keep more of their hard earned money in their pockets," Nelson said today.

"This is about making sure Floridians receive the deductions they're entitled to," Martinez said in a release.

Residents in states with income taxes can already deduct it on their federal tax returns, but Florida is one of eight states with a sales tax and no income tax.

In 2004, at the urging of Nelson and other lawmakers in the seven other sales-tax states, Congress decided to allow for the deduction of state sales taxes - but only for two years. Lawmakers have since elected to extend the tax break on a two-year basis in lieu of making it permanent.

The tax break will allow Floridians to deduct state sales taxes on their 2008 and 2009 federal returns and is expected to save taxpayers between $200 to $2,300 a year.

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