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

The proposed law is set to take effect on July 1, 2025, and will apply to taxable periods beginning on or after that date. This legislation aims to alleviate the financial burden on rental vehicle companies by exempting them from sales and use taxes on repair costs, thereby potentially lowering rental prices for consumers.