Motor Vehicle Rental Tax Increase Defeated in Montana

The Truck Renting and Leasing Association (TRALA) announced March 29 that Montana legislation HB 585, that would have increased the state's motor vehicle rental tax from 4% to 6%, was defeated.

The House Transportation Committee leadership heard concerns from TRALA that the proposed tax increase would increase costs for people in Montana and subjects trucks to the tax based on existing definitions of “motor vehicle.”

TRALA pointed out to committee leadership that the tax increase would have affected more stakeholders than out-of-state tourists who need to rent passenger cars. Small businesses and residents would also experience increased costs when renting light-duty rental trucks that weigh up to 22,000 pounds.

According to TRALA, HB 585 was pushed as a slight increase in the car rental tax, even though the existing tax applies to any vehicle under 22,000 pounds.

To see a copy of HB 585, click here.

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