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- :: Automatic Renewal Clauses
- :: Data Security
- :: Electronic Recycling
- :: Tax Law
- :: Other Issues
ELFA actively monitors and engages legislation and regulation that impacts the industry in all 50 states, but our efforts depend upon our members' involvement with their state and local legislators.
ELFA Letter to Illinois Department of Revenue
This document contains questions sent to the Illinois Department of Revenue by ELFA about implementation of new regulations sourcing Illinois sales tax at "the physical location of the property at the time the parties enter into the "conditional sales agreement" as found at 86 III Adm. Code 130.2010 (A).
Cook County Illinois Tax Defeated In Court
On August 4, in Reed Smith v Cook County Department of Revenue the Appellate Court of Illinois First Judicial District struck down the new Cook County, Illinois non-titled tangible personal property use tax on tangible personal property used in the county that was purchased outside of Cook County (e.g., computers, furniture, pencils, construction materials, equipment, etc.). ELFA State Government Relations Committee Chairman Valerie Pfeiffer, Tax Coefficient reports the decision is not yet on the court website but provided a copy of the decision
California Electronic Recycling Fee Change Effective January 1, 2013
On January 1, 2013, the California Electronic Recycling fee rates will change to $3, $4, and $5 depending on the viewable diagonal screen size of the equipment. Lessors are responsible for proper collection even if exercising the option for vendors to voluntarily collect and remit the fee. Visit the Information on Collecting the California Electronic Recycling Fee page for more details.
Texas Dealers Heavy Equipment Inventory Tax
ELFA is reaching out to members and allies to advocate for changes to the Texas Dealers Heavy Equipment Inventory Tax (TRS Tax Code §26.1241) which threatens to increase tax burdens on lease finance companies with equipment interests in Texas.
Automatic Renewal Clauses
ELFA believes that all contract terms, including automatic renewal terms, should be properly and adequately disclosed and cautions against legislative attempts to dictate contract provisions between a lessor and lessee.
In 2011, state legislators across America introduced bills assigning liability for disclosure of private information stored on digital copiers to various parties including - and occasionally specifically targeting - the leasing company. ELFA advocates for a responsible, informed approach that accounts for existing security technologies and the responsibility of the information collector / end-user of equipment to ensure the security of information they manage.
California is the first and only state to institute an Advance Recycling Fee (ARF) to pay for its Electronic Recycling Program. ELFA opposes the ARF due to the difficulty lessors face in collecting the fee and supports the Extended Producer Responsibility (EPR) model adopted by 25 states as of July 2011.
Electronic Recycling Testimony
Illinois Sales Tax regulations
In the wake of the Illinois Supreme Court decision in Hartney Fuel Oil Company v. Hamer, 2013 IL 115130 (November 21, 2013) that invalidated the state's regulation on sourcing for local sales tax and prompted release of new sourcing rules, ELFA submitted comments to the Illinois Department of Revenue.
Michigan Business Tax: The Michigan Business Tax (MBT) that established problematic barriers to true leasing has been replaced by the Corporate Income Tax (CIT) as presented in House Bill 4361 and House Bill 4362. HB 4361 replaces the complexities of the MBT with a 6% corporate income tax and eliminates a number of income and business tax exemptions. HB 4362 is companion legislation. Bank leasing subsidiaries will be taxed by the Net Capital Tax under the unitary reporting concept. ELFA member involvement has been the key to years of collaborative advocacy with the Michigan Bankers Association.
North Carolina 2011 Sales Tax Decrease: The North Carolina Department of Revenue has issued guidance for lessors that the July 1, 2011 state sales and use tax rate decrease to 4.75% applies to all existing equipment leases. ELFA members should examine the Important Notice linked below for complete information, especially local tax application.
North Carolina 2009 Sales Tax Increase: ELFA has received guidance from the North Carolina Attorney General's Office on the proper application to existing lease contracts of the 2009 1% sales and use tax increase.
Sales Tax on Personal Property Tax: ELFA has sought guidance from several states to the application of sales and use tax on personal property tax collected by a lessor from a lessee.
Streamlined Sales Tax Project (SSTP): The SSTP is a voluntary multi-state compact to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance. ELFA supports and is an active participant in the SSTP.
Puerto Rico Sales Tax: In 2006 Puerto Rico instituted a sales and use tax system to replace an underperforming general excise tax on imported goods.
Securitization: ELFA has lobbied in conjunction with allied associations on legislation of interest.
TRAC State Statutes: