House Bill 112 Summary

• Establishes a sales and use tax rebate for governmental agencies (cities, counties, highway districts receiving highway funding, or state departments) on road materials purchased by contractors for constructing, repairing, or replacing highways, streets, roads, and alleys.

• Requires governmental agencies to file written claims with the state tax commission within 12 months of paying contractor invoices, including copies of the construction contract, invoices showing taxes paid, and proof of payment.

• Contractors have no right to receive the rebate directly; only governmental agencies may claim the tax rebate for materials that become part of public roads and the property of the governmental agency upon project completion.

• State tax commission shall pay rebated amounts from the state refund account during the next quarterly sales tax distribution following a 30-day processing period after receiving a complete claim.

• Allows governmental agencies to submit claims on an ongoing basis as invoices are paid, without requiring the contracted project to be fully completed before filing rebate claims.