State and local government officials are applauding House Ways and Means Committee members on the eve of an expected vote to approve legislation that would repeal a 3% withholding requirement that they warn would be costly and burdensome.

The committee has scheduled a vote for Thursday on HR 674, a bipartisan measure that would repeal tax-law provisions requiring governments that have $100 million or more of vendor contracts for goods and services each year to withhold and remit to the Internal Revenue Service 3% of contract payments of $10,000 or more.

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