State and Local General Sales Tax Protection Act

This bill clarifies that federal transportation funding restrictions do not apply to state or local general sales taxes or generally applicable sales taxes. It amends two sections of federal law (49 U.S.C. §47107 and §47133) by replacing references to "local taxes" and "State tax" with "local excise taxes" and "State excise tax," respectively. The key change explicitly excludes general sales taxes from being subject to federal rules governing how transportation funds can be used, directly affecting state and local governments that collect these taxes for transportation projects.