Limited Time Offer. Become a Founder Member Now!

Contractor rental tax exemption bill would simplify ST‑5C process, vendors say

September 29, 2025 | 2025 Legislature MA, Massachusetts


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Contractor rental tax exemption bill would simplify ST‑5C process, vendors say
United Rentals told the Joint Committee on Revenue that House Bill 30‑65 would streamline the pass‑through sales tax exemption process for contractors renting equipment to tax‑exempt entities. Ed Noonan, Director of Government Affairs for United Rentals, said the current process requires a partially completed ST‑5C form plus a state exemption certificate and that missing fields and a required second signature lead to frequent denials and project delays.

"This administrative change will allow for a more streamlined and efficient exemption request process while maintaining adequate safeguards to the state to ensure compliance," Noonan said.

Emily Granzen, director of indirect tax at United Rentals, provided details from the retailer perspective: her team reviews roughly 35,000 exemption certificates annually and about 10% are ST‑5C forms for contractors. "On average, we reject 35% of the ST‑5C submitted by customers, not because the customer doesn't qualify for the exemption, but because one of the 16 required sections on the form isn't filled out," she testified, and she said H.3065 cuts required fields by about half and removes the second signature requirement.

Committee members asked about safeguards and audit risk; Granzen explained vendors retain certificates for audit and that the change would lower administrative friction while preserving documentation required for DOR audits. No committee vote was taken; proponents were invited to submit model language and implementation details to clarify how audit trails and fraud prevention would be maintained.

View full meeting

This article is based on a recent meeting—watch the full video and explore the complete transcript for deeper insights into the discussion.

View full meeting

Sponsors

Proudly supported by sponsors who keep Massachusetts articles free in 2025

Scribe from Workplace AI
Scribe from Workplace AI