Section 1 Short title
This Act may be cited as the “Transportation Funds Exemption Act of 2015”.
Transportation Funds Exemption Act of 2015
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.
Sec. 2 Treatment of State and local taxes under Federal-aid highway program
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.”
Clerical amendment— The analysis for such chapter is amended by inserting after the item relating to section 154 the following:
Effective date— The amendment made by subsection (a) shall apply to fiscal year 2017 and each fiscal year thereafter.