Maria's Monday Memo: Helping Taxpayers Take Advantage of the Federal New Sales Tax Deduction

Statement

As I wrote last week, after 18 years Congress has addressed an aspect of the tax code that unfairly penalizes taxpayers in Washington and several other states. I worked with my Republican colleague Sen. Kay Bailey Hutchinson and Washington's Rep. Brian Baird in the House to get legislation passed to allow Washington state taxpayers to deduct state and local sales taxes from their 2004 federal income tax returns. A ccording to the Washington state Department of Revenue, nearly one million Washington households will be able to take advantage of this new deduction, and it will put about $500 in those families' pocketbooks . That means that nearly $500 million per year will stay in our state - a big boost for our economy.

Today, Rep. Baird and I led an event with the Director of the state's Department of Revenue, Will Rice, and a local CPA and tax preparer, Mustafa Patwa , to outline tax tips and strategies to help Washington taxpayers get the biggest tax cut possible from the new state sales tax deduction. Any Washington state taxpayer who itemizes on their federal tax return will be eligible for this new deduction. The most important steps you can take to prepare for the new deduction are 1) save your receipts, especially for big purchases, 2) check your records for any large purchases you may have made since January 1, 2004, and 3) if you itemize on your federal tax return, choose the standard sales tax deduction or a deduction based on receipts. These tips provide a starting point - I am posting more detailed information about how to take advantage of the new deduction on my web site, at http://cantwell.senate.gov .

Supporting Affordable Housing

Tomorrow I'm joining local leaders in Vancouver to celebrate the opening of Plum Meadows, a new affordable rental housing development built on the site of the former Fruit Valley Elementary School. For many working parents, providing housing for their families on their household budgets is a real challenge. Plum Meadows will help families meet this need: its units are affordable to households that earn 60 percent of the Vancouver area's median income below. The project will also preserve the neighborhood's elementary school, by providing the enrollment increase needed to keep the school open. Plum Meadows was made possible by a collaborative effort to revitalize one of the oldest neighborhoods in Vancouver.

State and federal officials worked with local leaders to make this vision a reality. Collaborative funding for the project comes from federally-backed private activity bonds, U.S. Department of Housing and Urban Development direct funding and tax credits, and funding through the Washington state Housing Trust Fund. I'm glad to support this wonderful project, and I hope this innovative approach can be adopted to provide affordable housing to other Washington communities, too.

Protecting the Upper White Salmon River and Cascade Creek

I'm glad to report that the Senate has passed my bill to protect about 20 miles of the upper White Salmon River and Cascade Creek in the Gifford Pinchot National Forest. This is exciting news for local business leaders, environmentalists, and whitewater sports fans. The protection of these portions of the White Salmon River and Cascade Creek will ensure that Washingtonians - and the visitors who provide important revenue for the local economy - will be able to enjoy this river for many years to come. I have been whitewater rafting on the White Salmon River myself, and I know that it's truly one of our state's wild treasures.

My bill has the support of local residents and area businesses, as well as the Bush Administration. It would protect about 20 miles of the upper White Salmon River and Cascade Creek, all currently within the Gifford Pinchot National Forest, as components of the National Wild and Scenic Rivers System. This designation is important because it will permanently safeguard important wildlife habitat along the upper third of the White Salmon River, maintaining a its status as a premiere recreational destination and an economic resource for Southwest Washington

Keeping Tabs on Mt. St. Helens

I know that many Washingtonians are rightfully concerned about the status of Mt. St. Helens. The Gifford Pinchot National Forest has created an information line - (360) 891-5202 - to provide updates on the mountain's volcanic activity, as well as other vital information. The recorded message includes updates about road closures, as well as area evacuation plans, and what residents should do before, during, and after ashfall. Information is updated weekly, but if the mountain's activity increases, it will be updated every day. The recording is also available in Spanish. Please refer to this information line as needed to stay abreast of the latest news.

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