State and Local General Sales Tax Protection Act

This bill clarifies that general sales taxes collected by states or localities cannot be counted as "excise taxes" for federal transportation funding purposes. It amends two sections of transportation law to specifically exclude "State or local general sales taxes" and "generally applicable sales taxes" from requirements meant for special taxes like fuel taxes. The change directly affects states and local governments that apply for federal transportation funds, ensuring those funds are supported by the intended tax sources. The bill makes no new tax rules but prevents states from using broad-based sales tax revenue to meet federal transportation funding criteria.