Bill > S2028

This bill modifies the Massachusetts sales tax law by removing a previously existing tax exemption for rental car companies when they purchase motor vehicles, trailers, or other vehicles. Currently, these companies were not required to pay sales tax when buying vehicles for their rental fleets, but under this proposed legislation, such purchases would now be subject to the standard retail sales tax. The bill specifically references existing legal definitions in section 32E ½ of chapter 175 of the Massachusetts General Laws to define what constitutes a "rental company," and it overrides previous regulations that had granted these businesses a sales tax exemption, including a specific regulation (830 CMR 64H,25,1(7)) that had previously protected them from this tax. By eliminating this exemption, the bill aims to increase state revenue by requiring rental companies to pay sales tax on vehicle purchases, treating them more like standard retail consumers.

Budget and Finance

https://malegislature.gov/Bills/194/S2028