With 15 states currently in session, your team at ELFA is working to review and, where needed, to address all legislation filed that impacts your interests. ELFA’s efforts are focused on identifying any and all measures that would wrongly infringe on the operations of ELFA members in the commercial sector, addressing those bills that require our attention and conversely promoting legislation that addresses industry needs. ELFA has projected that more than 180,000 state legislative bills will be filed across the 50 states on a yearly basis. ELFA as in 2023 estimates there will be more than 2,000 bills introduced in 2024 that may impact our members’ interests.
State Legislatures in Session
As of Jan. 3, 15 states are in regular session and 35 states are not in session.
Missouri Disclosure Legislation Re-Introduced
Finance disclosure legislation has again been filed in Missouri. The disclosure legislation last year ran out of time and failed to pass at the end of last session.
Missouri Senate Bill 753 creates the “Commercial Financing Disclosure Law.” Under this act, any person who consummates more than five commercial financing transactions, as defined in the act, to a business located in this state in a calendar year is required to make certain disclosures to the business with regard to the transaction. Specifically, the provider is required to disclose the total amount of funds provided to the business under the terms of the commercial financing transaction. As negotiated, this legislation includes the full suite of “ELFA Exemptions” including UCC 2a lease, UCC 9 purchase money obligation, captive and bank affiliate and subsidiary transactions.
ELFA will keep the membership alerted to activity in every state that introduces any form of finance disclosure or state licensing legislation.
Tracking Devices on Kentucky Leased Assets
Kentucky House Bill 45 includes prohibition of tracking devices “in or on a leased motor vehicle without the knowledge and consent of either the lessee or authorized operator of the motor vehicle” among provisions relating to the unlawful use of tracking devices. This includes the installation of a tracking device on the person or property of another without their consent.
Ohio, New Jersey and Wyoming Equipment Tax Exemption Pre-files
- Ohio Agriculture Equipment Exemption - Ohio House Bill 347 presumes that certain vehicles and trailers are primarily used in agriculture, and thus exempt from sales and use tax, when the purchaser provides three years of filed federal farm profit and loss forms and the Tax Commissioner subsequently issues certificates established by this legislation. HB 347 would amend the current “agricultural use” exemption that does not apply to any specific list of property and focuses on how equipment is used. But, if the Department of Taxation (TAX) later determines the purchase does not qualify for the exemption, the purchaser is liable for the tax due. HB 347 instead establishes a presumption that the vehicle or trailer will be used primarily in farming and is therefore exempt from sales and use tax. A list of equipment qualifying for this new exemption created by HB 347 is found on page 2 of the Legislative Analysis.
- New Jersey Leases of Electric School Buses - New Jersey Assembly Bill 5827 authorizes use of competitive contracting and extended terms for lease and purchase contracts for electric school buses; permits New Jersey School Boards Association to serve as government aggregator to obtain electric school buses.
- Wyoming Manufacturing Equipment Exemption and Vendor Definition - Wyoming Legislative Service Office (LSO) Working Draft 226 in processing for introduction in the new session by the Joint Revenue Interim Committee makes a number of changes to the sales tax, including broadening the exemption for sale or lease of equipment used predominantly in manufacturing tangible personal property. The measure amends the definition of “vendor” to exclude sellers who do not habitually engage in business within the state. It also provides that remote sales tax nexus shall only be established by making $100,000 in annual sales into the state (rather than also by making 200 individual sales).
Oklahoma Heavy Equipment Rental Fees
Oklahoma Senate Bill 1438 is an Act relating to heavy equipment rental fees that includes but is not limited to providing certain transactions exempt from fee requirement and exempting recovery fees from sales tax.
Share Your Thoughts
Your review of the legislation above can be communicated to ELFA Vice President, State Government Relations, Scott Riehl. ELFA sends out email updates on state legislative and regulatory activity as it occurs. You can receive this information by sending complete contact information to Scott Riehl.
