IRS Deduction for Property Tax Payment

The Government Finance Officers Association (GFOA) sent out a notice today (September 28, 2017) requesting that local leaders call their U.S. Senators and Representatives to thwart the House Ways and Means Committee’s attempt to remove the deduction on your individual 1040 tax return for State and Local Taxes (SALT).  In Texas, removing the deduction for SALT means that property and sales taxes paid by individuals who prepare itemized tax returns would no longer receive a deduction resulting in an effective tax increase.    One of the primary benefits of owning a personal residence is the deduction of property tax and its removal, along with the removal of the sales tax deduction, would result in many taxpayers no longer being able to prepare an itemized return.  When an individual is no longer able prepare an itemized tax return, the mortgage interest deduction is effectively removed.   While SALT deduction on the surface may seem like a minor shift in the tax code, it ultimately results in a major shift in public policy removing incentives that afford many Americans the opportunity to follow the American Dream of purchasing a home, setting down roots, and being a vested member of the community.

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The GFOA requests that you Activate Your Community by requesting voters, taxpayers, businesses, realtors, homebuilders, educators, and anyone else in your cities and counties who will be harmed by this proposal to contact their U.S. representatives.

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