Wednesday, December 22, 2004

Tax Relief For Floridians

Governor Jeb Bush today applauded the implementation of a new
federal tax law that allows Floridians to deduct state sales tax on federal
income tax returns. Benefiting residents of Florida and six other states
without state personal income tax, the 2004 American Jobs Creation Act,
endorsed by Governor Bush, authorizes the sales tax relief as an added
option for taxpayers itemizing deductions.

"This new law extends to Floridians the same tax benefits long enjoyed by
residents of states that tax personal income," said Governor Bush. "Allowing
residents to deduct state sales taxes on federal returns will put more money
back into the pockets of hard-working families."

Americans in most states have long been able to deduct state income taxes
from their federally-taxable income when calculating how much of their
earnings are subject to federal income tax. Since Florida and six other
states -- Alaska, Nevada, South Dakota, Texas, Washington and Wyoming --
have no state personal income taxes, residents were unable to claim a
similar deduction.

Beginning with the 2004 federal income tax, Florida residents can claim the
new sales tax deduction by:
* Retaining receipts from purchases of items subject to
Florida sales tax and claim the total amount of sales tax paid as a
* Determining a standard deduction using the Internal Revenue
Service's new Optional State Sales Tax Tables as an alternative to saving
receipts throughout the year. As a supplementary benefit, Floridians may
also add any sales tax paid on a motor vehicle, aircraft, boat, home or home
building materials to the standard deduction.

Floridians wishing to take advantage of the new deduction should consult the
IRS or their tax-preparation professional. For more information on the
available deduction and to view the Optional State Sales Tax Tables issued
just last week, visit the IRS web site at .

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