JWB H.C.R. 217 75(R)BILL ANALYSIS WAYS & MEANS H.C.R. 217 By: Denny 5-9-97 Committee Report (Unamended) BACKGROUND Congressional tax legislation in 1986 eliminated the deductibility of state sales taxes by federal income tax filers, but state income taxes remained deductible. Only 17 percent of Texas filers claim deductions for taxes paid, compared to 28 percent of American generally, and deductions for taxes paid as a percentage of adjusted income are almost three times higher nationally than among Texas taxpayers. Texas derives more than 55 percent of its current tax revenue from the sales tax, which is a significant percentage increase since the early 1980s, when the corresponding figure was less than 40 percent. Changes contemplated by the 75th Legislature would further widen the interstate deductibility gap, by both broadening the sales tax and reducing the property taxes that remain federally deductible. PURPOSE The resolution requests the Congress of the United States to restore the federal income tax deductibility of state sales taxes. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS RESOLVED, That the 75th Legislature of the State of Texas hereby respectfully request the Congress of the United States to restore the federal income tax deductibility of state sales taxes; and be it further RESOLVED, That the Texas secretary of state forward official copies of this resolution to the president of the United States, to the speaker os the house of representatives and the president of the senate of the United States Congress, and to all the members of the Texas delegation to the congress with the request that this resolution be officially entered in the Congressional Record as a memorial to the Congress of the United States of America.