By Brock Huffstutler
January 3, 2025
January
U.S. House Ways and Means Committee Chairman Jason Smith and U.S. Senate Finance Committee Chairman Ron Wyden introduce The Tax Relief for American Families and Workers Act of 2024. Billed as a bipartisan, bicameral tax framework, the proposal addresses several of the tax policy priorities the American Rental Association (ARA) has been pursuing.
ARA informs members about the Beneficial Ownership Information (BOI) reporting requirement. An element of the 2021 Corporate Transparency Act designed to curb illicit finance, BOI requires many companies doing business in the U.S. to report information about the individuals who ultimately own or control them. BOI must be submitted through the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), and many companies must file by Jan. 1, 2025.
U.S. Citizenship and Immigration Services announces increases on certain immigration and naturalization benefit request fees effective April 1. Petitions related to the H-2B visa program are included among the fee increases.
Kentucky rental operators travel to the state Capitol in Frankfort to bring attention to the need to pass HB 95, a bill that would add the definition of equipment rental to the state’s existing theft of services code.
February
On Feb. 19, during The ARA Show™ in New Orleans, a reception is held at Marché in the French Quarter to toast members of ARAPAC, ARA’s political action committee that supports probusiness Congressional candidates —regardless of party affiliation.
April
On April 11, Hawaii rental operators participate in their first legislative day at the state Capitol in Honolulu. The event grew out of the efforts by the ARA of Hawaii Task Force and ARA in helping event rental operators recover following the wildfires that devastated Lahaina, Maui, and closed several event venues.
On April 22, Maine Gov. Janet Mills signs into law a supplemental budget for the state containing a provision that changes the way rental companies collect use tax due on equipment. Beginning Jan. 1, 2025, rental businesses will collect use tax on equipment directly from customers. Previously, rental businesses paid the tax upfront at the time of purchase of the equipment.
The Coalition for a Democratic Workplace — to which ARA belongs — condemns the Occupational Safety and Health Administration’s (OSHA) final rule on its “Worker Walkaround Representative Designation Process.” The rule allows employees to designate nonemployees as their representative during facility walkarounds with OSHA compliance safety and health officers. The rule is set to go into effect May 31.
The U.S. Federal Trade Commission (FTC) issues a final rule banning noncompete agreements. The FTC says the ban protects the fundamental freedom of workers to change jobs, increase innovation and foster new business formation. The final rule is to become effective 120 days after its publication in the Federal Register.
May
On May 1, the ARA of California hosts a legislative day at the state Capitol in Sacramento, where rental operators discuss issues impacting their businesses with legislators and staff. Among the issues discussed was the proposed “right to disconnect” law (AB 2751). As proposed, the bill would make a pattern of unwanted contact with employees after hours a criminal offense. Many rental operators are concerned that the bill is overly broad, contains ill-defined terms and turns a labor issue into a criminal one. Soon after the legislative day, success was seen in the postponement of AB 2751 for the rest of the year.
A coalition of nearly 100 organizations, including ARA, submits a letter supporting a proposed bill that seeks to repeal the federal Corporate Transparency Act (CTA) which authorizes the BOI reporting requirement. The proposal — the Repealing Big Brother Overreach Act — was introduced in Congress by Sen. Tommy Tuberville and Rep. Warren Davidson.
The U.S. Chamber of Commerce files a coalition lawsuit in federal court challenging OSHA’s “Worker Walkaround Representative Designation Process” final rule.
The Oklahoma Legislature overrides Gov. Kevin Stitt’s veto in April of SB 1438 — a bill authorizing rental companies in the state to charge a “recovery fee” of 1.25 percent on the rental charge from any item of heavy equipment property rental by a customer. Revenues from the fee may be used to pay personal property taxes. The law, set to take effect Nov. 1, 2024, is permissive, meaning the charging of the recovery fee authorized by SB 1438 is optional for rental operators.
June
On June 7, Illinois Gov. J.B. Pritzker signs into law a measure changing the way the state imposes a use tax that applies to rental equipment. Beginning Jan. 1, 2025, rental businesses will collect a state use tax due on equipment/tangible personal property (TPP) directly from customers via the rental/lease stream. Previously, businesses purchasing TPP for rental purposes paid the state TPP use tax upfront at the time of purchase. The shift in use tax collection methodology brings Illinois on par with every other state that imposes a sales tax in regard to the treatment of TPP held for rental or lease.
The California Air Resources Board (CARB) approves the Zero Emission Forklift Regulation, with requirements beginning in 2026. Some of the key points include: For rental companies only, Class V LSI forklifts 10,000 lbs. and under will not be regulated until 2029; acknowledgement that all diesel forklifts are covered by the In-Use Off-Road Diesel-Powered Fleets Regulation; starting Jan. 1, 2026, rental companies that purchase diesel forklifts must report the acquisition and state if the new forklift is doing the work of a Class IV forklift with a rating capacity of 12,000 lbs. or less; and Class V LSI forklifts over 10,000 lbs. are not regulated until 2038.
July
ARA informs members that the U.S. Department of Labor (DOL) has released a proposed rule that would require employers to develop an injury and illness prevention plan to control heat hazards in the workplace.
August
The FTC’s final rule banning noncompete agreements — issued in April and set to take effect Sept. 4 — is blocked by a federal judge in Texas.
September
Employee Voter Registration Week is recognized from Sept. 16 – Sept. 20. ARA provides voter registration information to members to help get their employees registered to vote. ARA continues its “Get out the vote” efforts during the 2024 election cycle by encouraging the equipment and event rental community to visit the ARA’s Voter Resource Center —ARAvotes.com — to find important voting information.
October
The FTC initiates an appeal of a Texas federal court’s blocking of its final rule banning noncompete agreements.
ARA’s government affairs team submits position papers on five priority tax policy issues to the representatives who chair teams of influence over the issues within the U.S. House Ways and Means Committee — the body that will lead the U.S. House of Representatives as it tackles tax reform in 2025.
November
ARA publishes an overview of the November 2024 elections, which saw the Republican party win the White House, gain control of the U.S. Senate and maintain control of the U.S. House of Representatives. The overview includes an analysis of how the election’s results could impact several of the legislative issues ARA is advocating for, including provisions of the 2017 Tax Cut and Jobs Act that are set to expire in 2025, infrastructure bills and more.
On Nov. 15, the U.S. District Court for the Eastern District of Texas issues a ruling that invalidates the entirety of the DOL’s 2024 final overtime regulations rule. The rule would have increased the threshold for salaried workers who are eligible for time-and-a-half pay if they log more than 40 hours per week.
December
On Dec. 3, a federal court in Texas issues a nationwide injunction blocking the act that mandates BOI reporting — less than one month before the Jan. 1, 2025, BOI reporting deadline for many companies.
ARA informs members of its new approach to legislative advocacy, which involves the elevation of activity at the state level while still maintaining a strong federal presence. As part of its tandem state/federal concentration, the association announces Matthew Hite as ARA vice president, federal advocacy, and Kevin Gern as ARA vice president, state advocacy.
John McClelland, Ph.D., ARA vice president for government affairs and chief economist, retires after serving 22 years in the role.
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