86R25607 GRM-F
By: Nevárez, Rodriguez, Moody H.B. No. 4362
Substitute the following for H.B. No. 4362:
By: Ortega C.S.H.B. No. 4362
A BILL TO BE ENTITLED
AN ACT
relating to peer-to-peer vehicle sharing platforms and the
applicability of certain taxes to those platforms.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 113 to read as follows:
CHAPTER 113. PEER-TO-PEER VEHICLE SHARING PLATFORMS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 113.001. DEFINITIONS. In this chapter:
(1) "Peer-to-peer vehicle sharing" means the
authorized use of a personal motor vehicle by an individual other
than the vehicle's owner through a peer-to-peer vehicle sharing
platform.
(2) "Peer-to-peer vehicle sharing platform" means a
platform that is in the business of connecting personal motor
vehicle owners with drivers to enable the sharing of motor vehicles
for financial consideration.
Sec. 113.002. CONFLICT OF LAW. To the extent of a conflict
between this chapter, including a rule adopted under this chapter,
and another law, this chapter controls.
Sec. 113.003. CONTROLLING AUTHORITY. Notwithstanding any
other provision of law, the regulation of peer-to-peer vehicle
sharing and peer-to-peer vehicle sharing platforms:
(1) is an exclusive power and function of this state;
and
(2) may not be regulated by a municipality, county, or
other local entity, including by:
(A) imposing a tax, levy, fee, or charge of any
kind;
(B) requiring an additional license or permit;
(C) setting rates;
(D) imposing operational or entry requirements;
or
(E) imposing other requirements.
SUBCHAPTER B. PLATFORM AGREEMENTS
Sec. 113.051. REQUIRED DISCLOSURES. A peer-to-peer vehicle
sharing platform agreement must state:
(1) the daily rate, fees, and any protection package
or insurance costs that are charged to the shared vehicle owner or
the shared vehicle driver; and
(2) the sharing period.
SUBCHAPTER C. DUTIES OF PLATFORM AND VEHICLE OWNERS
Sec. 113.101. DUTIES OF PLATFORM. A peer-to-peer vehicle
sharing platform shall verify that a motor vehicle does not have any
safety recalls for which repairs have not been made before the motor
vehicle is made available for sharing on the platform.
Sec. 113.102. DUTIES OF VEHICLE OWNER. If a shared vehicle
owner receives actual notice of a safety recall on the owner's
vehicle after the motor vehicle is made available for sharing on a
peer-to-peer vehicle sharing platform, the owner shall remove the
vehicle from the platform until the safety recall repair has been
made.
SECTION 2. Subchapter A, Chapter 151, Tax Code, is amended
by adding Section 151.0044 to read as follows:
Sec. 151.0044. "PEER-TO-PEER VEHICLE SHARING".
"Peer-to-peer vehicle sharing" has the meaning assigned by Section
113.001, Business & Commerce Code.
SECTION 3. Section 151.008, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) For the purpose of peer-to-peer vehicle sharing, the
seller or retailer is the peer-to-peer vehicle sharing platform as
defined by Section 113.001, Business & Commerce Code. The owner of
a personal motor vehicle used for peer-to-peer vehicle sharing is
not the seller or retailer unless the owner of the vehicle is the
peer-to-peer vehicle sharing platform.
SECTION 4. Section 151.0101(a), Tax Code, is amended to
read as follows:
(a) "Taxable services" means:
(1) amusement services;
(2) cable television services;
(3) personal services;
(4) motor vehicle parking and storage services;
(5) the repair, remodeling, maintenance, and
restoration of tangible personal property, except:
(A) aircraft;
(B) a ship, boat, or other vessel, other than:
(i) a taxable boat or motor as defined by
Section 160.001;
(ii) a sports fishing boat; or
(iii) any other vessel used for pleasure;
(C) the repair, maintenance, and restoration of a
motor vehicle; and
(D) the repair, maintenance, creation, and
restoration of a computer program, including its development and
modification, not sold by the person performing the repair,
maintenance, creation, or restoration service;
(6) telecommunications services;
(7) credit reporting services;
(8) debt collection services;
(9) insurance services;
(10) information services;
(11) real property services;
(12) data processing services;
(13) real property repair and remodeling;
(14) security services;
(15) telephone answering services;
(16) Internet access service; [and]
(17) a sale by a transmission and distribution
utility, as defined in Section 31.002, Utilities Code, of
transmission or delivery of service directly to an electricity
end-use customer whose consumption of electricity is subject to
taxation under this chapter; and
(18) peer-to-peer vehicle sharing.
SECTION 5. Section 151.308(a), Tax Code, is amended to read
as follows:
(a) The following are exempted from the taxes imposed by
this chapter:
(1) oil as taxed by Chapter 202;
(2) motor fuels and special fuels as defined, taxed,
or exempted by Chapter 162;
(3) cement as taxed by Chapter 181;
(4) motor vehicles, trailers, and semitrailers as
defined, taxed, or exempted by Chapter 152, other than:
(A) a mobile office or an oilfield portable unit,
as those terms are defined by Section 152.001; or
(B) peer-to-peer vehicle sharing;
(5) mixed beverages, ice, or nonalcoholic beverages
and the preparation or service of these items if the receipts are
taxable by Subchapter B, Chapter 183, or the items are taxable by
Subchapter B-1, Chapter 183;
(6) alcoholic beverages when sold to the holder of a
private club registration permit or to the agent or employee of the
holder of a private club registration permit if the holder or agent
or employee is acting as the agent of the members of the club and if
the beverages are to be served on the premises of the club;
(7) oil well service as taxed by Subchapter E, Chapter
191; and
(8) insurance premiums subject to gross premiums
taxes.
SECTION 6. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.360 to read as follows:
Sec. 151.360. LOCAL TAXES ON PEER-TO-PEER VEHICLE SHARING.
Peer-to-peer vehicle sharing is exempted from local taxes imposed
or governed by Subtitle C, Title 3.
SECTION 7. Section 152.001, Tax Code, is amended by adding
Subdivision (5-a) to read as follows:
(5-a) "Rental" does not include peer-to-peer vehicle
sharing as defined by Section 113.001, Business & Commerce Code.
SECTION 8. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 9. This Act takes effect September 1, 2019.