Improving local government funding by removing certain sales and use tax exemptions.

HB 2502 removes sales tax exemptions for certain products and services that currently only exclude state sales tax but not local sales tax. This change will increase revenue for local governments (cities and counties) by requiring these items to pay both state and local sales taxes. The bill specifically targets exemptions listed in the tax code that previously allowed businesses to avoid paying local taxes on qualifying purchases. As a result, local governments will gain additional funding to support essential services like roads, public safety, and community programs.