Adds to existing law to provide an exemption from the sales and use tax on certain materials used in connection with a public highway or street.

This legislation exempts road materials used to construct, improve and maintain our public roads from the sales/use tax. Currently, the fiction that the contractor is the end user of the materials is used to tax such materials even if they are provided by the State of Idaho or its subdivisions (ITD, Counties, Highway Districts and Cities) that have the responsibility to build and maintain our public roads. The result is higher cost for our road projects and a transfer of the money to the general fund.