Senate Bill No. 241, introduced by Senator Miguez, proposes a new sales and use tax exemption specifically for the costs associated with the repair of certain rented or leased motor vehicles. The bill enacts R.S. 47:305.77, which states that the sales and use tax imposed by any taxing authority will not apply to the costs of repairs or the parts and materials used in the repair of a motor vehicle if the vehicle is rented or leased by a dealer for re-rent or re-lease to a third party.

This exemption is set to take effect on July 1, 2025, and will apply to taxable periods beginning on or after that date. The bill aims to provide financial relief to businesses involved in the rental and leasing of motor vehicles by reducing the tax burden associated with vehicle maintenance and repair.