Federal

State and Local General Sales Tax Protection Act

Source: Congress.gov · 391 words in original text

What This Bill Does

This bill amends federal law to change how certain taxes are described and to exclude general sales taxes from specific federal requirements. The bill clarifies that state and local general sales taxes do not need to follow certain rules that apply to excise taxes (taxes on specific products or activities). ##

Who It Affects

States and local governments that collect general sales taxes and excise taxes. Federal agencies that oversee tax-related requirements under title 49 of United States Code. ##

Key Provisions

- The bill changes references from "local taxes" to "local excise taxes" in two paragraphs of federal law (Sec. 2(a)(1)) - The bill changes references from "State tax" to "State excise tax" in another paragraph of federal law (Sec. 2(a)(2)) - State and local general sales taxes and generally applicable sales taxes are excluded from requirements that apply to excise taxes (Sec. 2(a)(3)) - The bill makes the same language changes in a different section of federal law, replacing "Local taxes" with "Local excise taxes" and "State tax" with "State excise tax" (Sec. 2(b)) - State and local general sales taxes and generally applicable sales taxes are excluded from restrictions that apply to other taxes (Sec. 2(b)(4)) ##

What Changes

Federal law will now specify "excise taxes" instead of "taxes" in certain sections, and general sales taxes will be explicitly exempt from these requirements. ##

Important Definitions

None defined in the bill text. ##

I 118TH CONGRESS 1ST SESSION H. R. 695 To amend title 49, United States Code, to clarify the use of certain taxes and revenues. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 1, 2023 Mrs. NAPOLITANO (for herself, Ms. WILLIAMS of Georgia, Mr. HUFFMAN, Mr. GARAMENDI, and Mr. DAVID SCOTT of Georgia) introduced the following bill; which was referred to the Committee on Transportation and Infra- structure 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 20:19 Feb 17, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H695.IH H695 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 695 IH (1) in each of paragraphs (1) and (2) by strik- 1 ing ‘‘local taxes’’ and inserting ‘‘local excise taxes’’; 2 (2) in paragraph (3) by striking ‘‘State tax’’ 3 and inserting ‘‘State excise tax’’; and 4 (3) by adding at the end the following: 5 ‘‘(4) This subsection does not apply to State or local 6 general sales taxes nor to State or local generally applica- 7 ble sales taxes.’’. 8 (b) RESTRICTION ON USE OF REVENUES.—Section 9 47133 of title 49, United States Code, is amended— 10 (1) in subsection (a) in the matter preceding 11 paragraph (1) by striking ‘‘Local taxes’’ and insert- 12 ing ‘‘Local excise taxes’’; 13 (2) in subsection (b)(1) by striking ‘‘local 14 taxes’’ and inserting ‘‘local excise taxes’’; 15 (3) in subsection (c) by striking ‘‘State tax’’ 16 and inserting ‘‘State excise tax’’; and 17 (4) by adding at the end the following: 18 ‘‘(d) LIMITATION ON APPLICABILITY.—This sub- 19 section does not apply to— 20 ‘‘(1) State or local general sales taxes; or 21 ‘‘(2) State or local generally applicable sales 22 taxes.’’. 23 Æ VerDate Sep 11 2014 20:19 Feb 17, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H695.IH H695 pbinns on DSKJLVW7X2PROD with $$_JOB

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