Alabama 2025 Regular Session

Alabama Senate Bill SB265 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB265INTRODUCED
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3	3	SB265
4	4	XGH9EZZ-1
5	5	By Senator Elliott
6	6	RFD: Fiscal Responsibility and Economic Development
7	7	First Read: 19-Mar-25
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12	12	5 XGH9EZZ-1 12/10/2024 CMH (L)bm 2024-2900
13	13	Page 1
14	14	First Read: 19-Mar-25
15	15	SYNOPSIS:
16	16	This bill would authorize peer-to-peer car
17	17	sharing programs, which are business platforms that
18	18	connect vehicle owners with drivers, to enable the
19	19	sharing of vehicles for financial consideration in this
20	20	state.
21	21	This bill would also provide requirements for
22	22	the operation of a peer-to-peer car sharing program,
23	23	including insurance requirements, notification
24	24	requirements, tax requirements, recordkeeping and
25	25	reporting requirements, liability requirements,
26	26	consumer protection disclosure requirements, and safety
27	27	recall requirements.
28	28	A BILL
29	29	TO BE ENTITLED
30	30	AN ACT
31	31	Relating to motor vehicles; to establish the
32	32	Peer-to-Peer Car Sharing Program Act; to provide requirements
33	33	for the operation of peer-to-peer car sharing programs; and to
34	34	amend Section 40-12-222, Code of Alabama 1975, to provide for
35	35	the taxation of peer-to-peer car sharing programs under
36	36	certain conditions.
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66	66	certain conditions.
67	67	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
68	68	Section 1. Sections 1 through 14 of this act shall be
69	69	known and may be cited as the Peer-to-Peer Car Sharing Program
70	70	Act.
71	71	Section 2. As used in Sections 1 through 14 of this
72	72	act, the following words have the following meanings:
73	73	(1) CAR SHARING DELIVERY PERIOD. The period of time
74	74	during which a shared vehicle is being delivered to the
75	75	location of the car sharing start time, if applicable, as
76	76	documented by the governing peer-to-peer car sharing program
77	77	agreement.
78	78	(2) CAR SHARING PERIOD. The period of time that
79	79	commences with the peer-to-peer car sharing delivery period
80	80	or, if there is no car sharing delivery period, that commences
81	81	with the car sharing start time and, in either case, ends at
82	82	the car sharing termination time.
83	83	(3) CAR SHARING START TIME. The time when the shared
84	84	vehicle becomes subject to the control of the shared vehicle
85	85	driver at or after the time the reservation of a shared
86	86	vehicle is scheduled to begin, as documented in the records of
87	87	a peer-to-peer car sharing program.
88	88	(4) CAR SHARING TERMINATION TIME. The earliest of the
89	89	following events:
90	90	a. The expiration of the agreed-upon period of time
91	91	established for the use of a shared vehicle according to the
92	92	terms of the peer-to-peer car sharing agreement, if the shared
93	93	vehicle is delivered to the agreed upon location in the
94	94	agreement.
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124	124	agreement.
125	125	b. When the shared vehicle is returned to a location as
126	126	alternatively agreed upon by the shared vehicle owner and the
127	127	shared vehicle driver as communicated through a peer-to-peer
128	128	car sharing program, if the alternatively agreed upon location
129	129	is incorporated into the peer-to-peer car sharing program
130	130	agreement.
131	131	c. When the shared vehicle owner, or the shared vehicle
132	132	owner's authorized designee, takes possession and control of
133	133	the shared vehicle.
134	134	(5) PEER-TO-PEER CAR SHARING. The authorized use of a
135	135	vehicle by an individual other than the vehicle's owner
136	136	through a peer-to-peer car sharing program. The term does not
137	137	include any of the following:
138	138	a. A rental or leasing transaction of tangible personal
139	139	property which is subject to Article 4 of Chapter 12 of Title
140	140	40, Code of Alabama 1975, except as provided by Section
141	141	40-12-222(a)(2), Code of Alabama 1975.
142	142	b. Hiring, leasing, or renting a motor vehicle under a
143	143	rental agreement governed by Section 32-15-6, Code of Alabama
144	144	1975.
145	145	(6) PEER-TO-PEER CAR SHARING PROGRAM. A business entity
146	146	that uses a digital platform to connect vehicle owners with
147	147	drivers to enable the sharing of vehicles for financial
148	148	consideration. The term does not include any of the following:
149	149	a. A person engaging or continuing within this state in
150	150	the business of leasing or renting any automotive vehicle or
151	151	truck trailer, semitrailer, or house trailer that is subject
152	152	to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975.
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182	182	to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975.
183	183	b. A person facilitating a rental transaction of
184	184	tangible personal property which is subject to Article 4 of
185	185	Chapter 12 of Title 40, Code of Alabama 1975, except as
186	186	provided by Section 40-12-222(a)(2), Code of Alabama 1975.
187	187	c. A motor vehicle rental company licensed pursuant to
188	188	Section 27-7-5.1, Code of Alabama 1975.
189	189	d. A person facilitating rental transactions as
190	190	described in Section 40-2-11(a)(7)c., Code of Alabama 1975.
191	191	e. A car rental service provider solely providing
192	192	hardware or software as a service to a person or entity that
193	193	is not effectuating payment of financial consideration for the
194	194	use of a shared vehicle.
195	195	(7) PEER-TO-PEER CAR SHARING PROGRAM AGREEMENT. The
196	196	terms and conditions applicable to a shared vehicle owner and
197	197	a shared vehicle driver that govern the use of a shared
198	198	vehicle through a peer-to-peer car sharing program. The term
199	199	does not include any of the following:
200	200	a. A motor vehicle rental agreement governed by Section
201	201	32-15-6, Code of Alabama 1975.
202	202	b. A rental agreement with a motor vehicle rental
203	203	company licensed pursuant to Section 27-7-5.1, Code of Alabama
204	204	1975.
205	205	(8) SHARED VEHICLE. A vehicle that is available for
206	206	sharing through a peer-to-peer car sharing program. The term
207	207	does not include an automotive vehicle or a truck trailer,
208	208	semitrailer, or house trailer that is subject to Article 4 of
209	209	Chapter 12 of Title 40, Code of Alabama 1975, except as
210	210	provided by Section 40-12-222(a)(2), Code of Alabama 1975.
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240	240	provided by Section 40-12-222(a)(2), Code of Alabama 1975.
241	241	(9) SHARED VEHICLE DRIVER. An individual who has been
242	242	authorized to drive a shared vehicle by the shared vehicle
243	243	owner under a peer-to-peer car sharing program agreement. The
244	244	term does not include a person hiring, leasing, or renting a
245	245	motor vehicle under a rental agreement with a motor vehicle
246	246	rental company licensed pursuant to Section 27-7-5.1, Code of
247	247	Alabama 1975, or under a rental agreement governed by Section
248	248	32-15-6, Code of Alabama 1975.
249	249	(10) SHARED VEHICLE OWNER. The registered owner, or a
250	250	person or entity designated by the registered owner, of a
251	251	vehicle made available for sharing to shared vehicle drivers
252	252	through a peer-to-peer car sharing program. The term does not
253	253	include any of the following:
254	254	a. A lessor that is subject to Article 4 of Chapter 12
255	255	of Title 40, Code of Alabama 1975, except as provided by
256	256	Section 40-12-222(a)(2), Code of Alabama 1975.
257	257	b. A motor vehicle rental company licensed pursuant to
258	258	Section 27-7-5.1, Code of Alabama 1975.
259	259	Section 3. (a) Except as provided in subsection (b), a
260	260	peer-to-peer car sharing program shall assume liability of a
261	261	shared vehicle owner for bodily injury or property damage to
262	262	third parties during the car sharing period in an amount
263	263	stated in the peer-to-peer car sharing program agreement. The
264	264	amount shall not be less than the proof of financial
265	265	responsibility required under Chapter 7 of Title 32, Code of
266	266	Alabama 1975.
267	267	(b) The assumption of liability under subsection (a)
268	268	does not apply to any shared vehicle owner under either of the
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298	298	does not apply to any shared vehicle owner under either of the
299	299	following circumstances:
300	300	(1) When a shared vehicle owner makes an intentional or
301	301	fraudulent material misrepresentation or omission to the
302	302	peer-to-peer car sharing program before the car sharing period
303	303	in which the loss occurred.
304	304	(2) When a shared vehicle owner acts in concert with a
305	305	shared vehicle driver who fails to return the shared vehicle
306	306	pursuant to the terms of the peer-to-peer car sharing program
307	307	agreement.
308	308	(c) The assumption of liability under subsection (a)
309	309	applies to bodily injury or property damage to third parties
310	310	as required under Chapter 7 of Title 32, Code of Alabama 1975.
311	311	(d) A peer-to-peer car sharing program shall ensure
312	312	that during each car sharing period the shared vehicle owner
313	313	and the shared vehicle driver are insured under a motor
314	314	vehicle liability insurance policy that does all of the
315	315	following:
316	316	(1) Provides insurance coverage in amounts no less than
317	317	the minimum amounts required for proof of financial
318	318	responsibility described under Section 32-7-2, Code of Alabama
319	319	1975.
320	320	(2) Does either of the following:
321	321	a. Recognizes that the shared vehicle insured under the
322	322	policy is made available and used through a peer-to-peer car
323	323	sharing program.
324	324	b. Does not exclude the use of a shared vehicle by a
325	325	shared vehicle driver.
326	326	(e) The insurance required under subsection (d) may be
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356	356	(e) The insurance required under subsection (d) may be
357	357	purchased by any of the following:
358	358	(1) A shared vehicle owner.
359	359	(2) A shared vehicle driver.
360	360	(3) A peer-to-peer car sharing program.
361	361	(4) Any combination of a shared vehicle owner, a shared
362	362	vehicle driver, or a peer-to-peer car sharing program.
363	363	(f) The insurance required in subsection (d) shall be
364	364	primary during each car sharing period. If a claim occurs in
365	365	another state with minimum financial responsibility limits
366	366	higher than those described in Section 32-7-2, Code of Alabama
367	367	1975, during the car sharing period, the insurance maintained
368	368	by a peer-to-peer car sharing program pursuant to subsection
369	369	(h) shall satisfy the difference in minimum coverage amounts,
370	370	up to the applicable policy limits.
371	371	(g) The insurer, insurers, or peer-to-peer car sharing
372	372	program providing coverage purchased under subsection (e)
373	373	shall assume primary liability for a claim when either of the
374	374	following occurs:
375	375	(1) A dispute exists as to who was in control of the
376	376	shared vehicle at the time of the loss and the peer-to-peer
377	377	car sharing program does not have available, did not retain,
378	378	or fails to provide the information required by Section 6.
379	379	(2) A dispute exists as to whether the shared vehicle
380	380	was returned to the alternatively agreed upon location, if the
381	381	alternatively agreed upon location is incorporated into the
382	382	car sharing program agreement.
383	383	(h) If insurance purchase by a shared vehicle owner or
384	384	shared vehicle driver pursuant to subsection (e) has lapsed or
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414	414	shared vehicle driver pursuant to subsection (e) has lapsed or
415	415	does not provide the required coverage, insurance maintained
416	416	by a peer-to-peer car sharing program shall provide the
417	417	coverage required by subsection (d) beginning with the first
418	418	dollar of a claim and shall have the duty to defend the claim
419	419	except under circumstances as set forth in subsection (b).
420	420	(i) Coverage under an automobile insurance policy
421	421	maintained by the peer-to-peer car sharing program may not be
422	422	dependent on another automobile insurer first denying a claim
423	423	and may not require another automobile insurance policy to
424	424	first deny a claim.
425	425	(j) Nothing in this section does either of the
426	426	following:
427	427	(1) Limits the liability of a peer-to-peer car sharing
428	428	program for any act or omission of the peer-to-peer car
429	429	sharing program which results in injury to any person as a
430	430	result of the use of a shared vehicle through a peer-to-peer
431	431	car sharing program.
432	432	(2) Limits the ability of the peer-to-peer car sharing
433	433	program to seek indemnification, by contract, from the shared
434	434	vehicle owner or the shared vehicle driver for economic loss
435	435	sustained by the peer-to-peer car sharing program resulting
436	436	from a breach of the terms and conditions of the peer-to-peer
437	437	car sharing program agreement.
438	438	Section 4. When the owner of a vehicle registers as a
439	439	shared vehicle owner on a peer-to-peer car sharing program,
440	440	and before the owner makes a vehicle available for
441	441	peer-to-peer car sharing on the peer-to-peer car sharing
442	442	program, the peer-to-peer car sharing program shall notify the
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472	472	program, the peer-to-peer car sharing program shall notify the
473	473	owner that, if the vehicle has a lien against the vehicle, the
474	474	use of the vehicle through the peer-to-peer car sharing
475	475	program, including use without physical damage coverage, may
476	476	violate the terms of the contract with the lienholder.
477	477	Section 5. (a) An authorized insurer that writes motor
478	478	vehicle liability insurance in this state may exclude any and
479	479	all coverage and the duty to defend or indemnify for any claim
480	480	afforded under a shared vehicle owner's motor vehicle
481	481	liability insurance policy, including, but not limited to, all
482	482	of the following:
483	483	(1) Liability coverage for bodily injury and property
484	484	damage.
485	485	(2) Personal injury protection coverage.
486	486	(3) Uninsured and underinsured motorist coverage.
487	487	(4) Medical payments coverage.
488	488	(5) Comprehensive physical damage coverage.
489	489	(6) Collision physical damage coverage.
490	490	(b) Nothing in Sections 1 through 14 of this act
491	491	invalidates, limits, or restricts any of the following:
492	492	(1) An exclusion contained in a motor vehicle liability
493	493	insurance policy, including any insurance policy in use or
494	494	approved for use, which excludes coverage for motor vehicles
495	495	made available for rent, sharing, hire, or for any business
496	496	use.
497	497	(2) An insurer's ability under existing law to
498	498	underwrite any insurance policy.
499	499	(3) An insurer's ability under existing law to cancel
500	500	and nonrenew policies.
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530	530	and nonrenew policies.
531	531	Section 6. (a) A peer-to-peer car sharing program shall
532	532	collect and verify records pertaining to the use of all shared
533	533	vehicles used in a peer-to-peer car sharing program,
534	534	including, but not limited to, all of the following:
535	535	(1) The number of times the shared vehicle is used.
536	536	(2) Car sharing period pick up and drop off locations.
537	537	(3) Fees paid by the shared vehicle driver.
538	538	(4) Revenues received by the shared vehicle owner.
539	539	(b) To facilitate a claim coverage investigation,
540	540	settlement, negotiation, or litigation, the peer-to-peer car
541	541	sharing program, upon request, shall provide the records
542	542	collected under subsection (a) to the shared vehicle owner,
543	543	the shared vehicle owner's insurer, or the shared vehicle
544	544	driver's insurer.
545	545	(c) The peer-to-peer car sharing program shall retain
546	546	the records for a time period not less than the applicable
547	547	personal injury statute of limitations.
548	548	Section 7. A peer-to-peer car sharing program and a
549	549	shared vehicle owner shall not be liable, vicariously or
550	550	otherwise, by reason of making a shared vehicle available for
551	551	use through the peer-to-peer car sharing program or by being
552	552	the owner of a shared vehicle, for harm to persons or property
553	553	that occurs during the car sharing period.
554	554	Section 8. A motor vehicle insurer that defends or
555	555	indemnifies a claim against a shared vehicle that is excluded
556	556	under the terms of its policy shall have the right to seek
557	557	contribution from the motor vehicle insurer of the
558	558	peer-to-peer car sharing program if the claim is both of the
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588	588	peer-to-peer car sharing program if the claim is both of the
589	589	following:
590	590	(1) Made against the shared vehicle owner or the shared
591	591	vehicle driver for loss or injury that occurs during the car
592	592	sharing period.
593	593	(2) Excluded under the terms of its policy.
594	594	Section 9. (a) Notwithstanding any law to the contrary,
595	595	a peer-to-peer car sharing program shall have an insurable
596	596	interest in a shared vehicle during the car sharing period.
597	597	(b) Nothing in this section shall create liability on a
598	598	peer-to-peer car sharing program to maintain the coverage
599	599	mandated by Section 3.
600	600	(c) A peer-to-peer car sharing program may own and
601	601	maintain as the named insured one or more policies of motor
602	602	vehicle liability insurance that provide coverage for any of
603	603	the following:
604	604	(1) Liabilities assumed by the peer-to-peer car sharing
605	605	program under a peer-to-peer car sharing program agreement.
606	606	(2) Any liability of the shared vehicle owner.
607	607	(3) Damage or loss to the shared motor vehicle.
608	608	(4) Any liability of the shared vehicle driver.
609	609	Section 10. Each peer-to-peer car sharing program
610	610	agreement made in this state shall disclose to the shared
611	611	vehicle owner and the shared vehicle driver all of the
612	612	following:
613	613	(1) Any right of the peer-to-peer car sharing program
614	614	to seek indemnification from the shared vehicle owner or the
615	615	shared vehicle driver for economic loss sustained by the
616	616	peer-to-peer car sharing program resulting from a breach of
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646	646	peer-to-peer car sharing program resulting from a breach of
647	647	the terms and conditions of the peer-to-peer car sharing
648	648	program agreement.
649	649	(2) That a motor vehicle liability insurance policy
650	650	issued to the shared vehicle owner for the shared vehicle or
651	651	to the shared vehicle driver does not provide a defense or
652	652	indemnification for any claim asserted by the peer-to-peer car
653	653	sharing program.
654	654	(3) That the peer-to-peer car sharing program's
655	655	insurance coverage on the shared vehicle owner and the shared
656	656	vehicle driver is in effect only during each car sharing
657	657	period and that, for any use of the shared vehicle by the
658	658	shared vehicle driver after the car sharing termination time,
659	659	the shared vehicle driver and the shared vehicle owner may not
660	660	have insurance coverage.
661	661	(4) The daily rate, fees, and, if applicable, any
662	662	insurance or protection package costs that are charged to the
663	663	shared vehicle owner or the shared vehicle driver.
664	664	(5) That the shared vehicle owner's motor vehicle
665	665	liability insurance may not provide coverage for a shared
666	666	vehicle.
667	667	(6) An emergency telephone number to personnel capable
668	668	of fielding roadside assistance and other customer service
669	669	inquiries.
670	670	(7) Whether there are conditions under which a shared
671	671	vehicle driver must maintain a personal automobile insurance
672	672	policy with certain applicable coverage limits on a primary
673	673	basis in order to book a shared motor vehicle.
674	674	Section 11. (a) A peer-to-peer car sharing program may
675	675	309
676	676	310
677	677	311
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680	680	314
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704	704	Section 11. (a) A peer-to-peer car sharing program may
705	705	not enter into a peer-to-peer car sharing program agreement
706	706	with an individual who will operate a shared vehicle unless
707	707	the individual meets any of the following requirements:
708	708	(1) Holds a driver license issued under Section 32-6-1,
709	709	Code of Alabama 1975, which authorizes him or her to operate
710	710	vehicles of the class of the shared vehicle.
711	711	(2) Is a nonresident who meets both of the following
712	712	requirements:
713	713	a. Has a driver license issued by the state or country
714	714	of his or her residence which authorizes him or her to drive
715	715	vehicles of the class of the shared vehicle.
716	716	b. Is 16 years of age or older.
717	717	(3) Is specifically authorized by Section 32-6-2, Code
718	718	of Alabama 1975, to drive vehicles of the class of the shared
719	719	vehicle.
720	720	(b) A peer-to-peer car sharing program shall keep a
721	721	record of all of the following:
722	722	(1) The name and address of the shared vehicle driver.
723	723	(2) A copy of the driver license of the shared vehicle
724	724	driver and each other person, if any, who will operate the
725	725	shared vehicle.
726	726	(3) The state of issuance of the driver license.
727	727	Section 12. (a) A peer-to-peer car sharing program
728	728	shall have sole responsibility for any equipment, including a
729	729	Global Positioning System or other special equipment, that is
730	730	placed in or on the shared vehicle to monitor or facilitate
731	731	the car sharing transaction.
732	732	(b) A peer-to-peer car sharing program shall indemnify
733	733	337
734	734	338
735	735	339
736	736	340
737	737	341
738	738	342
739	739	343
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749	749	353
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762	762	(b) A peer-to-peer car sharing program shall indemnify
763	763	and hold harmless the shared vehicle owner for any damage to
764	764	or theft of such equipment during the peer-to-peer car sharing
765	765	period not caused by the shared vehicle owner.
766	766	(c) A peer-to-peer car sharing program may seek
767	767	indemnity from the shared vehicle driver for any loss or
768	768	damage to such equipment that occurs during the peer-to-peer
769	769	car sharing period.
770	770	Section 13. (a) When a vehicle owner registers as a
771	771	shared vehicle owner on a peer-to-peer car sharing program,
772	772	and before a shared vehicle owner makes a shared vehicle
773	773	available for peer-to-peer car sharing on the peer-to-peer car
774	774	sharing program, the peer-to-peer car sharing program shall do
775	775	both of the following:
776	776	(1) Verify that the shared vehicle does not have any
777	777	safety recalls on the vehicle for which the repairs have not
778	778	been made.
779	779	(2) Notify the shared vehicle owner of the requirements
780	780	under subsection (b).
781	781	(b)(1) If a shared vehicle owner has received an actual
782	782	notice of a safety recall on a shared vehicle, the shared
783	783	vehicle owner may not make the vehicle available as a shared
784	784	vehicle on a peer-to-peer car sharing program until the safety
785	785	recall repair has been made.
786	786	(2) If a shared vehicle owner receives an actual notice
787	787	of a safety recall on a shared vehicle while the shared
788	788	vehicle is made available on the peer-to-peer car sharing
789	789	program, the shared vehicle owner shall change the status of
790	790	the vehicle to unavailable as soon as practicably possible.
791	791	365
792	792	366
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794	794	368
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819	819	Page 15
820	820	the vehicle to unavailable as soon as practicably possible.
821	821	The shared vehicle may not be listed as available until the
822	822	safety recall repair has been made.
823	823	(3) If a shared vehicle owner receives an actual notice
824	824	of a safety recall on a shared vehicle while the shared
825	825	vehicle is in the possession of a shared vehicle driver and
826	826	engaged in peer-to-peer car sharing during a peer-to-peer car
827	827	sharing period, the shared vehicle owner shall notify the
828	828	peer-to-peer car sharing program about the safety recall as
829	829	soon as practicably possible after receiving the notice of the
830	830	safety recall. The shared vehicle may not be listed as
831	831	available until the safety recall repair has been made.
832	832	Section 14. Nothing in Sections 1 through 14 of this
833	833	act shall expand or restrict in any manner the respective
834	834	rights, obligations, or limitations of motor vehicle
835	835	manufacturers and licensed new motor vehicle dealers as set
836	836	forth in Chapter 20 of Title 8, Code of Alabama 1975.
837	837	Section 15. Section 40-12-222, Code of Alabama 1975, is
838	838	amended to read as follows:
839	839	"§40-12-222
840	840	(a)(1) In addition to all other taxes now imposed by
841	841	law, there is hereby levied and shall be collected a privilege
842	842	or license tax on each person engaging or continuing within
843	843	this state in the business of leasing or renting tangible
844	844	personal property at the rate of four percent of the gross
845	845	proceeds derived by the lessor from the lease or rental of
846	846	tangible personal property.
847	847	(2) Thea. Except as provided in paragraph b., the
848	848	privilege or license tax on each person engaging or continuing
849	849	393
850	850	394
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852	852	396
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866	866	410
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878	878	privilege or license tax on each person engaging or continuing
879	879	within this state in the business of leasing or renting any
880	880	automotive vehicle or truck trailer, semitrailer, or house
881	881	trailer shall be at the rate of one and one-half percent of
882	882	the gross proceeds derived by the lessor from the lease or
883	883	rental of such automotive vehicle or truck trailer,
884	884	semitrailer, or house trailer.
885	885	b.1. For purposes of paragraph a. only, the business of
886	886	leasing or renting an automotive vehicle includes peer-to-peer
887	887	car sharing as defined in Section 2 of the act amending this
888	888	section. The gross proceeds collected by a peer-to-peer car
889	889	sharing program as the leasing facilitator under Sections 1
890	890	through 14 of the act amending this section shall be subject
891	891	to the tax set forth in paragraph a. only for those
892	892	transactions where the shared vehicle was not subject to the
893	893	applicable sales and use taxes upon purchase in the
894	894	jurisdiction in which the shared vehicle owner purchased the
895	895	vehicle or if sales and use taxes were not paid at the time of
896	896	initial titling and registration in this state.
897	897	2. The Department of Revenue shall report annually to
898	898	the Chair of the House Ways and Means General Fund Committee,
899	899	the Chair of the Senate Finance and Taxation General Fund
900	900	Committee, and the Legislative Fiscal Officer a summary of any
901	901	decreases in the privilege or license tax on gross proceeds of
902	902	vehicle rental or leasing attributable to peer-to-peer car
903	903	sharing programs.
904	904	(3) The tax levied in this article shall not apply to
905	905	any leasing or rental, as lessor, by the state, or any
906	906	municipality or county in the state, or any public corporation
907	907	421
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936	936	municipality or county in the state, or any public corporation
937	937	organized under the laws of the state, including, without
938	938	limiting the generality of the foregoing, any corporation
939	939	organized under the provisions of Sections 11-54-80 through
940	940	11-54-101Division 1 of Article 4 of Chapter 54 of Title 11 .
941	941	(4) The privilege or license tax on each person or firm
942	942	engaging or continuing within this state in the business of
943	943	the leasing and rental of linens and garments shall be at the
944	944	rate of two percent of the gross proceeds derived by the
945	945	lessor from the lease or rental of the linens and garments.
946	946	(b) Notwithstanding subsection (a), nothing shall
947	947	prohibit a lessor subject to a state or local privilege or
948	948	license tax from passing the amounts on to a lessee by adding
949	949	the taxes to the leasing price or otherwise; provided,
950	950	however, that all amounts passed on to the lessee shall be
951	951	includable in the gross proceeds derived from the lease of
952	952	tangible personal property which shall be subject to the
953	953	privilege or license tax owed by the lessor.
954	954	(c) The state and applicable local privilege or license
955	955	taxes applicable to a lease or rental transaction to which a
956	956	lessor is subject shall be determined as follows:
957	957	(1) Except for automotive vehicles as provided in
958	958	subdivision (2), the following shall apply:
959	959	a. When tangible personal property is delivered to the
960	960	lessee by the lessor or his or her agent, the privilege or
961	961	license tax levy shall be determined based on where the
962	962	property is delivered.
963	963	b. When tangible personal property is picked up at the
964	964	lessor's rental location by the lessee or his or her agent,
965	965	449
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967	967	451
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994	994	lessor's rental location by the lessee or his or her agent,
995	995	the privilege or license tax levy shall be determined based on
996	996	the rental location.
997	997	(2) For automotive vehicles required to be registered
998	998	pursuant to Section 32-6-61, each lease payment is considered
999	999	a separate lease transaction and occurs in the location as
1000	1000	provided below and the following rules shall apply:
1001	1001	a. The privilege or license tax levy on any
1002	1002	nonrecurring gross proceeds due at the inception of the lease
1003	1003	to a new motor vehicle dealer or a used motor vehicle dealer
1004	1004	licensed pursuant to Section 40-12-391, including any
1005	1005	capitalized cost reduction or other fee that is retained by
1006	1006	the dealer in connection with its initiation of the lease,
1007	1007	shall be determined based on the location of the dealer where
1008	1008	the lease was initiated.
1009	1009	b. The privilege or license tax levy on gross proceeds
1010	1010	other than those described in paragraph a., including the
1011	1011	initial lease or rental payment and all subsequent lease or
1012	1012	rental payments, shall be determined based on the garage
1013	1013	address of the lessee as provided to the county licensing
1014	1014	official. The lessor is considered to be engaging or
1015	1015	continuing within this state in the business of leasing or
1016	1016	renting tangible personal property when its lessee has a
1017	1017	garage address within this state."
1018	1018	Section 16. This act shall become effective on October
1019	1019	1, 2025.
1020	1020	477
1021	1021	478
1022	1022	479
1023	1023	480
1024	1024	481
1025	1025	482
1026	1026	483
1027	1027	484
1028	1028	485
1029	1029	486
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1038	1038	495
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1044	1044	501