State Sales Tax Deductions

Something else to add to that issue is gas receipts. I have not seen any gas receipts that show how much tax was paid. In Tennessee where I live 21.4 cents per gallon is tax. The tax is then split three ways with some going to TDOT (TN Dept Of Trans.) and the rest going to state and local.

Here's a simple reason why nobody's talked about gas receipts. Gasoline is not subject to sales tax in any state that I know of. Does anybody know of any state that does sales tax gasoline? ChEAr$, Harlan Lunsford, EA n LA

Here are the states I am aware of: CA, GA, HI, IN, MI, NY & WV

-- Alan

Is that "GA" as in "Georgia, Alan? If so, I was never aware of this, and I am FROM Georgia. Of course I've never had any service station clients either. What about it Paul (Thomas); is this so? ChEAr$, Harlan Lunsford, EA n LA Wed 9 Mar 2005

My source is:

-- Alan

The IRS just published some guidance in Notice 2005-31 on deducting sales taxes. Here's the text on what it says about the tax being separately stated and paid by the consumer: "If the amount of a sales tax is separately stated and paid by the consumer (other than in connection with a trade or business), the amount of the tax is treated as a tax imposed on and paid by the consumer rather than the seller. Therefore, the consumer may deduct sales taxes that are imposed on the seller if the tax is separately stated (as on a contract or receipt) and paid by the consumer. Section

164(b)(5)(G)." Here in CA and I assume the other states that tax gasoline, the sales tax is buried in the price per gallon. It is usually posted at or near the pump. The sign usually shows the federal fuel tax, state fuel tax and sales tax per gallon. The actual paper receipt only shows the price per gallon. I think it is reasonable to include as a deduction, the sales tax paid on the fuel if the sales tax is separately identified to the public at the gas station.

-- Alan