I actually decided to call the IRS at their 800 number and ask my question about the double taxation issue.
Answer:
I can add the $300 sales tax I paid to the standard deduction, and have to submit a Schedule L form along with my return.
In order to claim the additional $528 I would have to itemize and claim it as a personal property tax expense. So, it all comes down to whether it is worthwhile to itemize your taxes or not.
On a side note, the lady at the IRS was very helpful and friendly. It took at least 15 minutes on hold to speak to her, but then she asked me a few basic questions and got the answers I needed.