Turner Bill Exempts Most Peer-To-Peer Shared Cars From Rental Tax

The text as introduced · 1,555 words

By: Turner
H.B. No. 4379

A BILL TO BE ENTITLED

AN ACT

relating to the application, collection, remittance, and

administration of the gross rental receipts tax on the renting of

shared motor vehicles through peer-to-peer car sharing programs;

imposing a penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 152.001(8), Tax Code, is amended to read

as follows:

(8) "Gross rental receipts" means value received or

promised as consideration to the owner of a motor vehicle or to a

peer-to-peer car sharing program provider for rental of the

vehicle, but does not include:

(A) separately stated charges for insurance;

(B) charges for damages to the motor vehicle

occurring during the rental agreement period;

(C) separately stated charges for motor fuel sold

by the owner of the motor vehicle; or

(D) discounts.

SECTION 2. Subchapter A, Chapter 152, Tax Code, is amended

by adding Section 152.0012 to read as follows:

Sec. 152.0012. PEER-TO-PEER CAR SHARING DEFINITIONS. In

this chapter:

(1) "Peer-to-peer car sharing program" means a

business platform that connects owners of motor vehicles with

drivers to enable vehicle sharing for financial consideration. The

term does not include a rental company as defined by Section 91.001,

Business & Commerce Code.

(2) "Peer-to-peer car sharing program provider" means

a person that owns or operates a peer-to-peer car sharing program.

The term does not include a rental company as defined by Section

91.001, Business & Commerce Code.

(3) "Shared vehicle" means a motor vehicle that is

available for sharing through a peer-to-peer car sharing program.

The term does not include:

(A) a private passenger vehicle rented by a

rental company under the terms of a rental agreement as those terms

are defined by Section 91.001, Business & Commerce Code; or

(B) a motor vehicle owned by a member of the

peer-to-peer car sharing program provider's affiliated group, as

defined by Section 171.0001(1).

SECTION 3. Section 152.026, Tax Code, is amended by

amending Subsection (a) and adding Subsection (e) to read as

follows:

(a) Except as provided by Subsection (e), a [ A ] tax is

imposed on the gross rental receipts from the rental of a rented

motor vehicle.

(e) The tax imposed by this section is only due on the gross

rental receipts from the rental of a shared vehicle through a

peer-to-peer car sharing program if the vehicle owner registered

the shared vehicle as a rental vehicle under Section 152.061 of this

code in lieu of paying the motor vehicle sales or use tax imposed by

Sections 152.021 and 152.022 of this code.

SECTION 4. Section 152.045, Tax Code, is amended to read as

follows:

Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS.

(a) Except as otherwise provided by this section or another

provision of [ inconsistent with this chapter and rules adopted

under ] this chapter, an owner of a motor vehicle subject to the tax

on gross rental receipts shall collect, report , and pay the tax to

the comptroller in the same manner as the tax under Chapter 151

[ Limited Sales, Excise and Use Tax ] is collected, reported , and

paid by a retailer [ retailers ] under that chapter [ Chapter 151 of

this code ].

(a-1) If the motor vehicle is a shared vehicle rented

through a peer-to-peer car sharing program, the peer-to-peer car

sharing program provider shall collect, report, and pay the tax on

gross rental receipts to the comptroller in the manner prescribed

by Subsection (a).

(b) The owner of a motor vehicle subject to the tax on gross

rental receipts or, if the motor vehicle is a shared vehicle rented

through a peer-to-peer car sharing program, the peer-to-peer car

sharing program provider shall add the tax to the rental charge, and

when added, the tax is:

(1) a part of the rental charge;

(2) a debt owed to the motor vehicle owner , or the

peer-to-peer car sharing program provider, as applicable, by the

person renting the vehicle; and

(3) recoverable at law in the same manner as the rental

charge.

(c) The comptroller may proceed against a person renting a

motor vehicle , or a peer-to-peer car sharing program provider, as

applicable, for any unpaid gross rental receipts tax.

(d) In addition to any other penalty provided by law, the

owner of a motor vehicle subject to the tax on gross rental receipts

who is required to file a report as provided by this chapter and who

fails to timely file the report shall pay a penalty of $50. If the

motor vehicle is a shared vehicle rented through a peer-to-peer car

sharing program and the peer-to-peer car sharing program provider

is required to file a report under this chapter but fails to timely

file the report, the peer-to-peer car sharing program provider

shall pay a penalty of $50. The penalty provided by this subsection

is assessed without regard to whether the taxpayer subsequently

files the report or whether any taxes were due from the taxpayer for

the reporting period under the required report.

(e) A peer-to-peer car sharing program provider is not

liable for failure to collect, report, and pay any tax due on the

gross rental receipts from the rental of a shared vehicle through

the peer-to-peer car sharing program if the peer-to-peer car

sharing program provider demonstrates that the failure resulted

from the peer-to-peer car sharing program provider's good faith

reliance on incorrect or insufficient information provided by the

vehicle owner.

SECTION 5. Section 152.046(b), Tax Code, is amended to read

as follows:

(b) An owner of a motor vehicle on which the motor vehicle

sales or use tax has been paid who subsequently uses the vehicle for

rental shall collect the gross rental receipts tax imposed by this

chapter from the person renting the vehicle. The owner may credit an

amount equal to the motor vehicle sales or use tax paid by the owner

to the comptroller against the amount of gross rental receipts due.

This credit is not transferable and cannot be applied against tax

due and payable from the rental of another vehicle belonging to the

same owner. This subsection does not apply to shared vehicles.

SECTION 6. Section 152.048(b), Tax Code, is amended to read

as follows:

(b) The presumption provided by Subsection (a) does not

apply to receipts:

(1) on which a tax imposed under other law is computed

and paid to the comptroller; [ or ]

(2) for which a properly completed resale or exemption

certificate is accepted by the seller ; or

(3) from the rental of a shared vehicle through a

peer-to-peer car sharing program .

SECTION 7. Section 152.063, Tax Code, is amended by

amending Subsection (b) and adding Subsection (b-1) to read as

follows:

(b) The owner of a motor vehicle used for rental purposes

shall keep for at least four years after the purchase of the [ a ]

motor vehicle records and supporting documents containing [ the

following ] information on the amount of:

(1) total consideration for the motor vehicle;

(2) motor vehicle sales or use tax paid on the motor

vehicle;

(3) gross rental receipts received by the owner or

peer-to-peer car sharing program provider, as applicable, from the

rental of the motor vehicle; and

(4) gross rental receipts tax paid to the comptroller

by the owner or peer-to-peer car sharing program provider, as

applicable, on each motor vehicle used for rental purposes by the

owner.

(b-1) If a motor vehicle is a shared vehicle rented through

a peer-to-peer car sharing program, the peer-to-peer car sharing

program provider shall keep for at least four years supporting

documents containing information listed in Subsection (b)(3) and

(4).

SECTION 8. Section 152.065, Tax Code, is amended to read as

follows:

Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner or a

peer-to-peer car sharing program provider required to collect,

report, and pay a tax on gross rental receipts imposed by this

chapter and a seller required to collect, report, and pay a tax on a

seller-financed sale shall register as a retailer with the

comptroller in the same manner as is required of a retailer under

Subchapter F, Chapter 151.

SECTION 9. Subchapter D, Chapter 152, Tax Code, is amended

by adding Section 152.070 to read as follows:

Sec. 152.070. PEER-TO-PEER CAR SHARING PROGRAM PROVIDER'S

REPORT. A peer-to-peer car sharing program provider shall send to a

vehicle owner a report each month that shows the amount of the gross

rental receipts tax collected, reported, and remitted for each

shared motor vehicle that the vehicle owner owns and that is rented

through the peer-to-peer car sharing program. The peer-to-peer car

sharing program provider is not required to send the report to a

vehicle owner of a shared vehicle during a month in which no gross

rental receipts tax was collected for the rental of that vehicle.

SECTION 10. The obligations set forth in this Act for

peer-to-peer car sharing program providers and vehicle owners under

Chapter 152, Tax Code, as amended by this Act, shall be applicable

beginning on the effective date of this Act. Nothing in this Act

shall be construed as imposing, or authorizing the enforcement of,

any tax obligation of any kind for any transaction that occurred

before the effective date of this Act.

SECTION 11. This Act takes effect October 1, 2025.