What your friend told you is not true. If your local sales tax rate is 2.9751% you can deduct the amount that you got from the IRS calculator.
In the Sales Tax Table that your friend referred you to on page 15 of the IRS Instructions for Schedule A, the 1 after the name of the state refers to Note 1 in the box at the bottom right. Note 1 says "Use the Ratio Method to determine your local sales tax deduction." You do that by using the State and Local General Sales Tax Deduction Worksheet on page 4 of the instructions. If you go through that worksheet, and if 2.9751% is your local sales tax rate, you will come up with local tax of $1,001.46 on line 6 of the worksheet, and a deduction of $3,189 on line 8.
I can't imagine where he got that list of 5 states, because they are not all treated the same for local sales tax. Michigan doesn't have any local sales taxes, so Michigan residents obviously cannot deduct local sales tax. KT is not a state. If it's supposed to be KY, Kentucky also does not have any local sales tax.
