Napier & Company, LCC

No. There is a table developed by the IRS and based on what your income level is, it will determine your deduction for State and Local Sales Tax. You can add to that the actual Sales Tax paid for certain large items like a car or boat. You do have the option to keep track of all the tax paid from each purchase and use the actual tax if you think that may be a greater deduction. You are only allowed to deduct the sales tax or the income tax, not both. So, for example, an Oregon resident may get no new deduction but for the Washington resident, this will have an additional deduction. As things stand now, this deduction is only available for 2004 and 2005.