Amends and adds to existing law to provide for a sales and use tax rebate on certain road materials for governmental entities that contract for road construction.

This proposed legislation provides a mechanism for governmental agencies to receive a rebate for sales and use taxes that are sometimes collected and paid on road materials used in construction, repair or replacements of highways, streets, roads, and or alleys. Currently sales and or use taxes are collected differently on road materials depending upon who owns the vehicles that are placing the road materials on the ground. Consequently, monies that are set aside for transportation are being funneled off and deposited into the general fund. This legislation will help to ensure that monies designated for transportation get used for transportation.