MASSACHUSETTS STATE AUTOMOBILE DEALERS ASSOCIATION
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1 MASSACHUSETTS STATE AUTOMOBILE DEALERS ASSOCIATION UPDATE Peter Brennan, Esq. MSADA Staff Attorney
2 MSADA represents the interests of over 400 franchised new car and truck dealers in the Commonwealth. MSADA s primary focus is to be the dealers voice before state, federal, and local governing bodies and administrative agencies as well as all public and media outlets. Extensive lobbying efforts on Beacon Hill and in Washington, D.C. MSADA also promotes dealers compliance with federal and state laws and regulations through educational programs, endorsement services, seminars/webinars, governmental outreach, and industry publications, including our legal bulletins, newsletters, and monthly magazine.
3 Driving Massachusetts Economy 50,832 total jobs (direct and indirect) created by MA dealerships 62 employees per dealership on average $626M in state and income taxes paid. $21.3B in total sales
4 Current Federal Legislative Priorities Oppose Tariffs No vehicle is 100% made in the USA. Tariffs will hurt all dealers due to increased prices, stifled demand and lost jobs. Automated Vehicles (AVs) Two bills in play on the federal level SELF DRIVE Act in House and AV START Act in Senate. Early draft of legislation included language inserted by OEMs that would preempt state franchise laws. Advocated for language preserving state franchise laws which was adopted by committee and passed by the House. Oppose Overly Broad Recall Legislation legislation would prevent the retail of any used vehicle with an open recall. Would create trade-in tax on consumers without improving safety. Repeal Federal Excise Tax on Heavy Duty Trucks Originally enacted to pay for World War 1.
5 Floor Plan Interest Deductibility Original tax reform bills disallowed interest deductibility, including floor plan financing, for interest expenses exceeding 30 percent of adjusted taxable income. The final tax package that was signed into law (H.R. 1) preserved 100 deductibility on vehicle floor plan interest on a permanent basis. Other priorities advocated by MSADA, such as doubling the estate tax exemption, preserving LIFO and maintaining the deductibility of advertising expenses were also include in final law. Recent Federal Legislative Accomplishments Tax Reform
6 Tax Reform 2.0 President Trump expected to lead push for additional changes to the tax code. GOP wants to push for additional comprehensive tax relief legislation while Democrats want to repeal the recently passed reforms. Expect the mid-term elections to provide some clarity on this front Elections Have Consequences.
7 Election Preview In Mass. all constitutional officers, including governor, and all legislators are up for re-election 160 reps and 40 senators. At federal level all 9 congressional offices and one US senator (Warren). Governor Charlie Baker, with nation-best 70% approval rating, will likely cruise to re-election. Democrats will continue to control the state house and senate by a wide margin. Two new members of the MA congressional delegation seats formerly belonging to Rep. Tsongas and Rep. Capuano.
8 Massachusetts Legislative Shifts With democrats maintaining a huge majority in the MA house and senate, it is likely that both bodies will continue to shift ideologically leftward. House Ways and Means Chair Jeff Sanchez was recently defeated by a primary challenger because he was not seen as liberal enough for his district. As state democrats worry more about a primary challenge from the left than a republican opponent, expect more legislation that is popular with the far-left fringes of the party. New formal session will being in January 2019, however, bills can still be passed during the informal sessions.
9 State Legislative Advocacy 90% of MSADA s advocacy is aimed at killing bills that would be harmful to our dealers or making sure that they are never filed in the first place. Recent Examples: Documentary Preparation Fee limits Expansion of Lemon Law Preservation of Trade-In Allowance
10 New Massachusetts Laws from Session Grand Bargain Comprehensive legislation increasing minimum wage and affecting premium pay and paid family and medical leave. Massachusetts Pay Equity Act went into effect on July 1, 2018 Massachusetts Pregnant Workers Fairness Act Went into effect on April 1, 2018.
11 THANK YOU
PAA was extremely engaged on several fronts during the now concluded budget session.
Bulletin No 13 July 12, 2013 Pennsylvania Automotive Association in this issue... Page 1 - Page 2 Legislative Update: Budget, Board of Vehicles Act, and Inspection Programs Page 3 Patient Center Outcomes
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