Bill > SB201

This bill exempts fuel purchased for school buses from both the gross receipts tax and the compensating tax, which are state taxes on the sale and use of goods and services respectively. Specifically, it creates a new provision within the Gross Receipts and Compensating Tax Act to ensure that receipts from the sale of fuel used in vehicles contracted by the public education department as school buses for student transportation to and from school or school-related activities are not subject to the gross receipts tax. Similarly, the use of such fuel in these authorized school buses will be exempt from the compensating tax. This exemption is set to take effect on July 1, 2016.