Transportation Funds Exemption Act of 2015

Bill: 114-hr-1724
Sponsor: full_name: Rep. Westerman, Bruce [R-AR-4]
Introduced: 2015-03-26
Policy area: Transportation and Public Works
Subjects: Roads and highways

Sales and excise taxes

State and local taxation

Transportation programs funding
Latest action: action_date: 2015-03-27
text: Referred to the Subcommittee on Highways and Transit.

Summaries:
action_date: 2015-03-26
action_desc: Introduced in House
text: <p><b>Transportation Funds Exemption Act of 2015</b></p> <p>This bill prohibits the Department of Transportation from approving a federal-aid highway project in a state for a fiscal year if in the previous fiscal year state or local sales taxes were collected on covered purchases of construction materials made, in whole or in part, with federal funds.</p> <p>The term &quot;covered purchase&quot; means: </p> <ul> <li>a purchase of construction materials used and consumed during the construction of a project or incorporated into the constructed, reconstructed, or improved product or facility; but excludes </li> <li>a purchase of equipment, heavy equipment, mechanized vehicles, and construction materials not fully consumed during the construction of a project.</li> </ul>

tv_txt: I 114th CONGRESS 1st Session H. R. 1724 IN THE HOUSE OF REPRESENTATIVES March 26, 2015 Mr. Westerman introduced the following bill; which was referred to the Committee on Transportation and Infrastructure A BILL To amend title 23, United States Code, to reduce Federal spending on surface transportation programs by limiting State and local taxation on purchases of construction materials made with funds made available from the Highway Trust Fund, and for other purposes.

1. Short title This Act may be cited as the Transportation Funds Exemption Act of 2015 . 2. Treatment of State and local taxes under Federal-aid highway program (a) In general Chapter 1 of title 23, United States Code, is amended by inserting after section 154 the following: 155. Treatment of State and local taxes (a) In general The Secretary shall not approve any project under section 106 in a State for a fiscal year if the Secretary determines that in the previous fiscal year State or local sales taxes were collected within the State on covered purchases of construction materials made, in whole or in part, with funds made available under this chapter. (b) Definitions In this section, the following definitions apply: (1) Covered purchase The term covered purchase — (A) means a purchase of construction materials that are used and consumed during the construction of a project or incorporated into the constructed, reconstructed, or improved product or facility; but (B) does not include a purchase of equipment, heavy equipment, mechanized vehicles, and construction materials that are not fully consumed during the construction of a project. (c) Construction material The term construction material means any substance specified or necessary to satisfactorily complete the contract work for a project. . (b) Clerical amendment The analysis for such chapter is amended by inserting after the item relating to section 154 the following: 155. Treatment of State and local taxes. . (c) Effective date The amendment made by subsection (a) shall apply to fiscal year 2017 and each fiscal year thereafter.