[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1724 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1724

 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.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transportation Funds Exemption Act 
of 2015''.

SEC. 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:
``Sec. 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.
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