Industry group supports closing rental‑car sales‑tax carveout as fair revenue measure
Summary
The Chamber of Progress and other witnesses urged the committee to support H.3160/S.2028 to end a sales‑tax carveout for large rental‑car companies, arguing the change would promote fairness and raise an estimated $186 million annually without direct impact on residents; retail and rental industry opposition was not present on this bill segment.
Brianna January of the Chamber of Progress told the committee she strongly supports H.3160 (and S.2028) to end a longstanding sales‑tax carveout for large rental‑car companies. The Chamber described the measure as a fairness reform that would align rental companies' purchases with the tax treatment paid by ordinary vehicle purchasers and estimated substantial revenue.
"Our estimates suggest that doing so would generate over $186,000,000 annually in revenue for Massachusetts," January said, and she argued the measure would not directly increase taxes on residents because it targets a corporate carveout.
Committee members asked about cross‑state impacts and the competitive landscape for rental companies; January said similar measures are under consideration elsewhere and cited recent actions in neighboring states. The committee requested written analyses and impact estimates; no vote was taken during the hearing.
