Exempts from business and occupation tax deductions, donations or contributions received by a candidate, political committee, caucus political committee, or bona fide political party or other person having the expectation of receiving contributions or making expenditures in support of, or opposition to, a candidate or ballot proposition.

Requires the department of revenue to estimate the amount of revenue derived from the exception and notify the secretary of state and the public disclosure commission of the amount of the revenue to be expended.