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Bill

H 3007

Convention of the States

2025-2026 Regular Session Introduced by Bill Hixon and 11 co-sponsors

Extends MA sales/use tax exemption to leased motor vehicles, giving leases the same tax relief as registered vehicles and affecting state revenue and administration.

Recalled from Committee on Judiciary
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Bill Summary · H 3007

Summary: H 3007 – An Act relative to the exemption of the sales or use tax for leased motor vehicles

Purpose and intent

  • This bill seeks to extend the Massachusetts sales and use tax exemption to leased motor vehicles, in addition to vehicles that are “registered.”
  • By inserting the words “or leased” into the existing exemption language, the bill would ensure that leases of motor vehicles are exempt from sales or use tax in the same manner as registered vehicles.

Key provisions and changes

  • Amends Section 6 of Chapter 64H of the General Laws. Specifically, after the word “registered” in the relevant sentence (as it appears in the 2016 Official Edition), the bill adds: “or leased.”
  • Result: Leases of motor vehicles would be treated the same as registered motor vehicles for purposes of the sales or use tax exemption.

Affected parties and impact

  • Primary beneficiaries: Vehicle lessees and motor vehicle lessors (leasing companies, fleet operators, dealerships that offer leasing).
  • Scope: Applies to motor vehicles that are leased in Massachusetts, aligning their tax treatment with vehicles that are registered.
  • Potential impacts:
    • Reduction in state sales and use tax revenue from vehicle leases (foregone tax collections on lease transactions).
    • Administrative and compliance considerations for tax authorities and leasing entities to implement and verify the exemption for leased vehicles.

Procedural and timeline aspects

  • Introduced: February 27, 2025.
  • Legislative actions:
    • February 27, 2025: Referred to the Committee on Revenue; Senate concurred.
    • October 7, 2025: Hearing scheduled for October 17, 2025 (10:00 AM–1:00 PM) in Committee A-2 (with a virtual component).
    • October 17, 2025: Hearing rescheduled from 10:00–10:30 AM to a new end time; updates indicate a revised end time for the virtual hearing as well.
  • Related matter: Similar bill previously filed in the 2023-2024 session as House No. 2694.

Context and notes

  • The bill’s title and text emphasize an exemption for leased motor vehicles, signaling alignment with existing exemptions for registered vehicles under Chapter 64H.
  • This measure is part of the Revenue committee’s portfolio and would likely be accompanied by fiscal analyses to gauge revenue impact and administration costs.
  • The bill is in the early stages of consideration and could be amended during the committee process.

Bottom line

H 3007 proposes a straightforward extension of the Massachusetts sales/use tax exemption to leased motor vehicles by inserting “or leased” into the current exemption language in Chapter 64H. If enacted, leases in Massachusetts would receive the same tax-exempt treatment as registered vehicles, altering revenue and administrative dynamics for the commonwealth and lease providers.

Compiled from official sources — confirm details with the bill’s official record.

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