Federal

State and Local General Sales Tax Protection Act

Source: Congress.gov · 386 words in original text

What This Bill Does

This bill amends federal transportation law to change how certain taxes are classified and what rules apply to them. The bill distinguishes between excise taxes (taxes on specific goods or activities) and general sales taxes (taxes applied to most purchases) so that different rules apply to each type. ##

Who It Affects

States and local governments that collect taxes and receive federal transportation funding. ##

Key Provisions

• The bill changes references from "local taxes" to "local excise taxes" in Section 47107(b) of federal law, meaning certain tax rules now only apply to excise taxes instead of all local taxes (Sec. 2(a)(1)) • The bill adds that state and local general sales taxes and generally applicable sales taxes do not have to follow the rules in Section 47107(b), removing them from those requirements (Sec. 2(a)(3)) • The bill changes references from "local taxes" to "local excise taxes" in Section 47133(a) of federal law, limiting which taxes must follow those rules (Sec. 2(b)(1)) • The bill adds that state and local general sales taxes and generally applicable sales taxes do not have to follow the rules in Section 47133, exempting them from those requirements (Sec. 2(b)(4)) ##

What Changes

If this becomes law, state and local general sales taxes will no longer be subject to certain restrictions that previously applied to all local taxes under federal transportation law. Only excise taxes will remain subject to these requirements. ##

Important Definitions

None defined in bill text. ##

II 118TH CONGRESS 1ST SESSION S. 882 To amend title 49, United States Code, to clarify the use of certain taxes and revenues. IN THE SENATE OF THE UNITED STATES MARCH 21, 2023 Mr. WARNOCK (for himself, Mr. OSSOFF, and Mr. PADILLA) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To amend title 49, United States Code, to clarify the use of certain taxes and revenues. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘State and Local Gen- 4 eral Sales Tax Protection Act’’. 5 SEC. 2. USE OF REVENUES. 6 (a) WRITTEN ASSURANCES ON USE OF REVENUE.— 7 Section 47107(b) of title 49, United States Code, is 8 amended— 9 VerDate Sep 11 2014 22:52 Mar 30, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S882.IS S882 kjohnson on DSK79L0C42PROD with BILLS 2 •S 882 IS (1) in each of paragraphs (1) and (2) by strik- 1 ing ‘‘local taxes’’ and inserting ‘‘local excise taxes’’; 2 (2) in paragraph (3) by striking ‘‘State tax’’ 3 and inserting ‘‘State excise tax’’; and 4 (3) by adding at the end the following: 5 ‘‘(4) This subsection does not apply to State or local 6 general sales taxes nor to State or local generally applica- 7 ble sales taxes.’’. 8 (b) RESTRICTION ON USE OF REVENUES.—Section 9 47133 of title 49, United States Code, is amended— 10 (1) in subsection (a) in the matter preceding 11 paragraph (1) by striking ‘‘Local taxes’’ and insert- 12 ing ‘‘Local excise taxes’’; 13 (2) in subsection (b)(1) by striking ‘‘local 14 taxes’’ and inserting ‘‘local excise taxes’’; 15 (3) in subsection (c) by striking ‘‘State tax’’ 16 and inserting ‘‘State excise tax’’; and 17 (4) by adding at the end the following: 18 ‘‘(d) LIMITATION ON APPLICABILITY.—This sub- 19 section does not apply to— 20 ‘‘(1) State or local general sales taxes; or 21 ‘‘(2) State or local generally applicable sales 22 taxes.’’. 23 Æ VerDate Sep 11 2014 22:52 Mar 30, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S882.IS S882 kjohnson on DSK79L0C42PROD with BILLS

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