Local governments exempt on the purchase of motor vehicles leases and construction materials purchases by a contractor or subcontractor provision

This bill would exempt local governments from paying sales tax on certain purchases, specifically motor vehicle leases and construction materials bought by contractors or subcontractors. The exemption applies to cities, counties, townships, special districts, and other local government entities starting after June 30, 2026. Currently, local governments must pay sales tax on these items when contractors purchase them on their behalf, but this legislation would remove that requirement. The change would only affect sales and purchases made after the specified effective date, with no impact on prior transactions.