88R13296 CJC-F
By: Nichols S.B. No. 1498
A BILL TO BE ENTITLED
AN ACT
relating to the collection, remittance, and administration of the
tax on gross rental receipts on motor vehicles rented through a
marketplace rental provider; 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 the
marketplace rental 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 152.0011 to read as follows:
Sec. 152.0011. MARKETPLACE RENTAL PROVIDER. (a) Subject
to Subsection (b), in this chapter, "marketplace rental provider"
means a person who:
(1) operates any type of marketplace, including a
store with a physical location, an Internet website, a software or
mobile application, or a catalog, by which the owner of a motor
vehicle lists, markets, or advertises the owner's motor vehicle for
rental by others for consideration in this state;
(2) facilitates the rental of the owner's motor
vehicle by another person by communicating between the owner and
the other person the terms of the agreement and the acceptance of
those terms; and
(3) directly or indirectly collects or processes the
receipts or rental charges paid by the person renting the motor
vehicle for the owner of the motor vehicle.
(b) The term marketplace rental provider does not include a
person who lists, markets, or advertises motor vehicles for rental
by others if:
(1) the person lists, markets, or advertises only
motor vehicles registered in the manner provided under Section
152.061; and
(2) the owners of the motor vehicles described by
Subdivision (1) collect, report, and pay the tax imposed under
Section 152.026 to the comptroller in the same manner as the tax
under Chapter 151 is collected, reported, and paid by a retailer
under that chapter.
SECTION 3. Section 152.026, Tax Code, is amended by
amending Subsection (b) and adding Subsections (b-1) and (b-2) to
read as follows:
(b) Except as provided by Subsections (b-1) and (b-2), the
[The] tax rate is 10 percent of the gross rental receipts from the
rental of a rented motor vehicle for 30 days or less and 6.25
[6-1/4] percent of the gross rental receipts from the rental of a
rented motor vehicle for longer than 30 days.
(b-1) The tax rate is 6.25 percent of the gross rental
receipts from the rental of a rented motor vehicle if:
(1) the motor vehicle is rented through a marketplace
rental provider; and
(2) Subsection (b-2) does not apply to the motor
vehicle.
(b-2) The tax rate is 10 percent of the gross rental
receipts from the rental of a rented motor vehicle if:
(1) the motor vehicle is rented through a marketplace
rental provider;
(2) the motor vehicle is rented for 30 days or less;
and
(3) either:
(A) the motor vehicle is registered in the manner
provided under Section 152.061; or
(B) the owner of the motor vehicle rents at least
five different motor vehicles within any 12-month period.
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) Except as provided by Subsection (a-2), if the motor
vehicle is rented through a marketplace rental provider, the
marketplace rental provider shall collect, report, and pay the tax
on gross rental receipts to the comptroller in the manner
prescribed by Subsection (a). The marketplace rental provider
shall certify to the owner of a motor vehicle rented through the
provider that the provider has collected, reported, and paid the
tax. An owner who in good faith accepts the marketplace rental
provider's certification is not required to collect, report, or pay
the tax.
(a-2) The owner of a motor vehicle rented through a
marketplace rental provider may elect to report and pay the tax on
gross rental receipts to the comptroller. If the owner elects to
report and pay the tax under this subsection:
(1) the owner must:
(A) register as required by Section 152.065; and
(B) inform the marketplace rental provider in
writing of the election; and
(2) the marketplace rental provider shall forward the
tax collected by the provider to the owner.
(b) The owner of a motor vehicle subject to the tax on gross
rental receipts or, if the motor vehicle is rented through a
marketplace rental provider, the 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
marketplace rental 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, the owner of the rented motor vehicle, or the
marketplace rental 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 rented through a marketplace rental provider and
the provider is required to file a report under this chapter but
fails to timely file the report, the 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.
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 from the owner. 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.
SECTION 6. Section 152.063(b), Tax Code, is amended to read
as follows:
(b) Except as otherwise provided by Section 111.0041:
(1) the [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:
(A) [(1)] total consideration for the motor
vehicle; and
(B) [(2)] motor vehicle sales or use tax paid on
the motor vehicle; and
(2) the owner of a motor vehicle used for rental
purposes and, if the motor vehicle is rented through a marketplace
rental provider, the provider, shall keep for at least four years
supporting documents containing information on the amount of:
(A) [(3)] gross rental receipts received by the
owner or provider, as applicable, from the rental of the motor
vehicle; and
(B) [(4)] gross rental receipts tax paid to the
comptroller by the owner or provider, as applicable, on each motor
vehicle used for rental purposes by the owner.
SECTION 7. Section 152.065, Tax Code, is amended to read as
follows:
Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner or a
marketplace rental 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 8. Subchapter D, Chapter 152, Tax Code, is amended
by adding Section 152.070 to read as follows:
Sec. 152.070. MARKETPLACE RENTAL PROVIDER'S REPORT. A
marketplace rental provider shall send to the owner of a motor
vehicle that is rented through the provider a report each month that
shows the amount of tax collected, reported, and paid for each motor
vehicle that the owner owns and that is rented through the provider.
The provider is not required to send the report to an owner who
elects to report and pay the tax under Section 152.045(a-2).
SECTION 9. This Act applies only to a rental agreement for
the rental of a motor vehicle entered into on or after the effective
date of this Act. A rental agreement for the rental of a motor
vehicle entered into before the effective date of this Act is
governed by the law in effect on the date the rental agreement was
entered into, 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 10. This Act takes effect October 1, 2023.