In November, Kyle Alexandre joined ELFA as Vice President for State Government Relations. In this capacity, she will oversee ELFA’s advocacy on behalf of the equipment leasing and finance industry to state governments across the country. She’s joining ELFA at a critical juncture and Equipment Leasing & Finance Magazine sat down with her to learn a little bit about her and what her focus will be in the coming weeks and months.
Q: Kyle, welcome! Can you tell us a little bit about yourself?
A: It is a pleasure to serve as ELFA’s new Vice President of State Government Relations. For the better part of two decades, I have worked in the government and political sectors across various industries, including the Florida Legislature, Disney, REALTORS and even a national presidential campaign. These experiences allowed me to tackle complex legislative issues and understand how policy impacts diverse stakeholders. I am excited to bring this expertise to ELFA and advocate on behalf of our members for the issues that affect the equipment leasing and finance industry.
Q: As we begin the new year, what are some of the legislative priorities you’re focusing on?
A: The start of a new year often brings renewed legislative activity, and this year is no exception. The issue of disclosures remains hot around the states, so we’re going to need to stay engaged on many fronts there. We’re also closely monitoring changes in Illinois and Maine concerning how sales taxes are collected.
Q: Let’s start with disclosure legislation, what are the trends there?
A: This trend started a little while ago now and has arguably been the dominant issue in small business finance at the state level over the last few years. We expect early action on this front in Illinois, New Jersey, likely Maryland, and maybe Pennsylvania. We’re approaching this issue from a couple different perspectives. First, we’ve taken a fresh look at our approach to the issue and we’re trying to see if there are ways we can lower the temperature of the process so that we have the ability to shape legislation that is likely inevitable. Second, we’re spending a lot of time educating state legislators about the unique business models in a variety of wings of equipment finance, whether it be the differences between true leases and loans, the captive finance model, or the difficulty some laws have created for the vendor-based finance model. We’re working to achieve the best possible outcome, but it’s safe to say that the best possible outcome might be different in Wyoming and Illinois.
Q: Speaking of Illinois, they also have developments in sales tax. Can you elaborate?
A: Certainly. Illinois changed their law regarding how sales tax is applied to leased or rented tangible personal property. Maine did the same thing and that shouldn’t get lost here. Starting on Jan. 1, 2025, instead of taxing the upfront purchase price, sales tax will now be applied to each periodic lease or rental payment made by the lessee. While this is a fine change in concept, the problem with this provision is that the refund provisions for leases entered into before the effective date is problematic in that there really isn’t one until you sell the equipment. We’re going to keep working on this in both states, and we know it’s going to be a problem.
Q: What’s your message to ELFA members as we kick off a new year?
A: Stay informed and engaged. Get to know your policymakers; those relationships are critically important so that they can make informed policy decisions when the time comes. ELFA is here to support our members every step of the way, but staying proactive and connected to our updates will ensure you’re prepared for any changes that come your way. Together, we can navigate these challenges and continue to strengthen the equipment leasing and finance industry.