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 provision, 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 the vehicle is rented or leased by a dealer for re-rent or re-lease to a third party.

The bill 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 dealers who rent or lease vehicles, thereby promoting the rental and leasing industry within the state.