The Florida state sales tax deduction has been extended for two year, as part of the fiscal cliff deal between Congress and the White House. Had it not been extended, then we would not have been allowed to claim the deduction on our 2012 federal tax return.
It would have also put Florida at a disadvantage in recruiting businesses since the residents of the states that have state income taxes, like Alabama and Mississippi,are allowed to deduct their state income taxes on their federal income tax returns.