Truck Renting and Leasing Association          

Volume II, Issue 4—April, 2009

Industry Headlines

Vicarious Liability Cap on Rentals Introduced in Alberta

At the request of TRALA and its industry allies, legislation to cap vicarious liability for owners of short-term rental vehicles has been introduced in Alberta, Canada.  Bill 30, introduced on March 16, would put a $1 million cap on vicarious liability exposure for owners of vehicles rented for 30 days or less.  Currently, such vehicle owners are potentially subject to unlimited vicarious liability claims.  To see a copy of Bill 30, please click here.

 

TRALA Tackles Proposed Lease Accounting Changes

TRALA’s FASB Working Group met via conference call on Tuesday, March 31 to review newly proposed changes in lease accounting rules.  The long-awaited proposal for overhauling lease accounting was issued jointly on March 19 by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).  TRALA’s FASB Working Group will be submitting comments on the proposal to FASB and meeting with officials to discuss concerns with the proposed standards.  Click here to see a copy of the FASB/IASB Discussion Paper titled Leases: Preliminary Views.

 

TRALA Fighting Texas Lease Tax

The Texas Legislature is getting a fight from TRALA in opposition to a new gross receipts lease tax proposal.  Legislation, Senate Bill 996 introduced by Senator Kip Averitt (R-Waco), would impose a new 6.25% gross receipts tax on motor vehicle leases with terms of more than 180 days.  Currently, the 6.25% gross receipts tax is imposed on motor vehicle rentals with terms of up to 180 days.  The tax would be imposed on truck leases originating in Texas and on truck leases originating out-of-state but in which the vehicle is used by a Texas business.  Click here to see a copy of SB 996.

 

Oregon Rental Tax Faces Strong TRALA Opposition

TRALA and its Industry Council for Vehicle Renting and Leasing are actively opposing a proposed new 12.5% tax on motor vehicle rentals.  The tax would apply to both commercial and consumer rentals of motor vehicles weighing up to 24,000 pounds.  According to the proposal, the base tax rate is 10% of the rental fee, plus a surcharge of 2.5% of the rental fee.  The tax applies to all rentals with a term of 30 days or less. Click here to see a copy of HB 2818.

 

TRALA Says No to Connecticut Sales Tax Exemption Repeal

TRALA and the Motor Transport Association of Connecticut are teaming up to defeat a proposal to repeal the current sales tax exemption on commercial truck rentals and leases.  The proposal, currently under consideration by the Joint Committee on Finance, Revenue and Bonding, would subject rentals and leases of trucks weighing over 26,000 pounds GVW to the state’s 6% sales tax.  The current sales tax exemption on these rental and lease transactions has been in place since 1991. TRALA is directly contacting the members of the Joint Finance Committee in opposition to the repeal of the sales tax exemption for commercial truck rentals and leases.

Truck Renting and Leasing Association ■ 675 N. Washington Street ■ Suite 410 ■ Alexandria, VA  22314 ■ 703.299.9120

TRALA Industry Wire

TRALA Selects New Leaders at 2009 Annual Meeting

Idealease of Richmond President Tom Thayer began his term as 2009-2010 Chairman at TRALA’s 31st Annual Meeting in Carlsbad, California.  Thayer accepted the gavel from outgoing Chairman Mike McMahon, president and CEO of Southeastern Leasing and Rental Co., in Charlotte, North Carolina, during Thursday’s Farewell Dinner.

In addition to Thayer, four officers were elected by TRALA’s Board of Directors:

· Allen Serfas, vice president, commercial truck division of Enterprise Commercial Trucks, in St. Louis, Missouri, was elected vice chairman

· Scott Anderson, senior vice president, insurance, finance and leasing of Rush Enterprises, Inc., in New Braunfels, Texas, was elected secretary

· Brian Hard, president of Penske Truck Leasing Co., L.P., in Reading, Pennsylvania, was elected treasurer

· Mike McMahon, president and CEO of Southeastern Leasing and Rental Co, in Charlotte, North Carolina, was elected immediate past chairman.

 

The membership also welcomed a number of new directors to the Board. A complete listing is available on TRALA’s website.

Legislative Update

Heritage Transport’s Dennis Shirar Named TRALA 2009 Driver of the Year

Over the past 31 years, Dennis Shirar has logged more than 3 million miles driving without a single preventable accident.  He currently hauls hazardous materials for Heritage Transport, LLC, of Indianapolis, Indiana.  In recognition of his lifetime record of safe driving, Dennis was selected as TRALA’s 2009 Driver of the Year.  He was recognized at the farewell dinner during TRALA’s 31st Annual Meeting which was held March 10-13 in Carlsbad, California.  The Driver of the Year program was made possible by Goodyear Tire & Rubber Company.

Dennis Shirar and Gordon Volpi

“Dennis Shirar was chosen the 2009 Driver of the Year because of his exceptional driving record and commitment to his community,” said Peter J. Vroom, president and CEO of TRALA.  “Dennis is a member of Irvington United Methodist Church and currently serving as the Church Council Chair person for 2007-2010.  He is also a board member of the 379th WWII Bomb Group.”

“This award was a complete surprise and I am honored that I have been selected,” Shirar said.  “It is an extra special honor to be named the driver of the year for such a quality organization.”

Tom Thayer

Allen Serfas

Scott Anderson

Brian Hard

Mike McMahon

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