H.R. 695House118th Congress (2023-2025)In Committee

State and Local General Sales Tax Protection Act

AI-Generated Summary

Updated January 20, 2026 at 2:55 AM UTC

The State and Local General Sales Tax Protection Act amends Title 49 of the U.S. Code to make clear that rules governing the use of certain transportation‑related tax revenues apply only to excise taxes, not to general sales taxes. By specifying that state and local general sales tax revenues are excluded, the bill protects those funds from being redirected under existing revenue‑use restrictions. It affects how federal transportation funds can be used by states and localities that collect excise taxes and general sales taxes.

Key Provisions

Changes references in §47107(b) from “local taxes” to “local excise taxes” and from “State tax” to “State excise tax.”
Adds a new paragraph stating the subsection does not apply to state or local general sales taxes or generally applicable sales taxes.
Updates §47133 to replace “local taxes” with “local excise taxes” and “State tax” with “State excise tax.”
Adds a limitation clause to §47133 stating it does not apply to state or local general sales taxes or generally applicable sales taxes.

Legislative Activity

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2 earlier actions

HouseCommittee Latest Action

Referred to the Subcommittee on Aviation.

Aviation Subcommittee

February 2, 2023

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HouseIntro Referral

Introduced in House

February 1, 2023

HouseIntro Referral

Referred to the House Committee on Transportation and Infrastructure.

Transportation and Infrastructure Committee

February 1, 2023

HouseCommittee

Referred to the Subcommittee on Aviation.

Aviation Subcommittee

February 2, 2023

Bill Text

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Introduced in HouseIssued February 1, 2023

118th CONGRESS

1st Session

H. R. 695

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 Infrastructure

A BILL

To amend title 49, United States Code, to clarify the use of certain taxes and revenues.

Short title

This Act may be cited as the State and Local General Sales Tax Protection Act.

Use of revenues

(a)

Written assurances on use of revenue

Section 47107(b) of title 49, United States Code, is amended—

(1)

in each of paragraphs (1) and (2) by striking local taxes and inserting local excise taxes;

(2)

in paragraph (3) by striking State tax and inserting State excise tax; and

(3)

by adding at the end the following:

(4)

This subsection does not apply to State or local general sales taxes nor to State or local generally applicable sales taxes.

(b)

Restriction on use of revenues

Section 47133 of title 49, United States Code, is amended—

(1)

in subsection (a) in the matter preceding paragraph (1) by striking Local taxes and inserting Local excise taxes;

(2)

in subsection (b)(1) by striking local taxes and inserting local excise taxes;

(3)

in subsection (c) by striking State tax and inserting State excise tax; and

(4)

by adding at the end the following:

(d)

Limitation on applicability

This subsection does not apply to—

(1)

State or local general sales taxes; or

(2)

State or local generally applicable sales taxes.