The amount of money that car-buying California residents send to the federal government could be reduced under new legislation that would reclassify the state’s vehicle sales tax.
The change, in a bill state Sen. Jerry McNerney (D) plans to introduce Friday, would convert the sales tax to a licensing fee. Licensing fees are considered property taxes that are combined with income tax when calculating a taxpayer’s federal, state and local tax deduction.
Taxpayers have to choose if they want to claim the SALT deduction for either income tax or sales tax. Because taxpayers in the state almost always pay more ...