Texas 2023 - 88th Regular

Texas Senate Bill SB1498 Compare Versions

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1	1	88R13296 CJC-F
2	2	By: Nichols S.B. No. 1498
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the collection, remittance, and administration of the
8	8	tax on gross rental receipts on motor vehicles rented through a
9	9	marketplace rental provider; imposing a penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 152.001(8), Tax Code, is amended to read
12	12	as follows:
13	13	(8) "Gross rental receipts" means value received or
14	14	promised as consideration to the owner of a motor vehicle or the
15	15	marketplace rental provider for rental of the vehicle, but does not
16	16	include:
17	17	(A) separately stated charges for insurance;
18	18	(B) charges for damages to the motor vehicle
19	19	occurring during the rental agreement period;
20	20	(C) separately stated charges for motor fuel sold
21	21	by the owner of the motor vehicle; or
22	22	(D) discounts.
23	23	SECTION 2. Subchapter A, Chapter 152, Tax Code, is amended
24	24	by adding Section 152.0011 to read as follows:
25	25	Sec. 152.0011. MARKETPLACE RENTAL PROVIDER. (a) Subject
26	26	to Subsection (b), in this chapter, "marketplace rental provider"
27	27	means a person who:
28	28	(1) operates any type of marketplace, including a
29	29	store with a physical location, an Internet website, a software or
30	30	mobile application, or a catalog, by which the owner of a motor
31	31	vehicle lists, markets, or advertises the owner's motor vehicle for
32	32	rental by others for consideration in this state;
33	33	(2) facilitates the rental of the owner's motor
34	34	vehicle by another person by communicating between the owner and
35	35	the other person the terms of the agreement and the acceptance of
36	36	those terms; and
37	37	(3) directly or indirectly collects or processes the
38	38	receipts or rental charges paid by the person renting the motor
39	39	vehicle for the owner of the motor vehicle.
40	40	(b) The term marketplace rental provider does not include a
41	41	person who lists, markets, or advertises motor vehicles for rental
42	42	by others if:
43	43	(1) the person lists, markets, or advertises only
44	44	motor vehicles registered in the manner provided under Section
45	45	152.061; and
46	46	(2) the owners of the motor vehicles described by
47	47	Subdivision (1) collect, report, and pay the tax imposed under
48	48	Section 152.026 to the comptroller in the same manner as the tax
49	49	under Chapter 151 is collected, reported, and paid by a retailer
50	50	under that chapter.
51	51	SECTION 3. Section 152.026, Tax Code, is amended by
52	52	amending Subsection (b) and adding Subsections (b-1) and (b-2) to
53	53	read as follows:
54	54	(b) Except as provided by Subsections (b-1) and (b-2), the
55	55	[The] tax rate is 10 percent of the gross rental receipts from the
56	56	rental of a rented motor vehicle for 30 days or less and 6.25
57	57	[6-1/4] percent of the gross rental receipts from the rental of a
58	58	rented motor vehicle for longer than 30 days.
59	59	(b-1) The tax rate is 6.25 percent of the gross rental
60	60	receipts from the rental of a rented motor vehicle if:
61	61	(1) the motor vehicle is rented through a marketplace
62	62	rental provider; and
63	63	(2) Subsection (b-2) does not apply to the motor
64	64	vehicle.
65	65	(b-2) The tax rate is 10 percent of the gross rental
66	66	receipts from the rental of a rented motor vehicle if:
67	67	(1) the motor vehicle is rented through a marketplace
68	68	rental provider;
69	69	(2) the motor vehicle is rented for 30 days or less;
70	70	and
71	71	(3) either:
72	72	(A) the motor vehicle is registered in the manner
73	73	provided under Section 152.061; or
74	74	(B) the owner of the motor vehicle rents at least
75	75	five different motor vehicles within any 12-month period.
76	76	SECTION 4. Section 152.045, Tax Code, is amended to read as
77	77	follows:
78	78	Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS.
79	79	(a) Except as otherwise provided by this section or another
80	80	provision of [inconsistent with this chapter and rules adopted
81	81	under] this chapter, an owner of a motor vehicle subject to the tax
82	82	on gross rental receipts shall collect, report, and pay the tax to
83	83	the comptroller in the same manner as the tax under Chapter 151
84	84	[Limited Sales, Excise and Use Tax] is collected, reported, and
85	85	paid by a retailer [retailers] under that chapter [Chapter 151 of
86	86	this code].
87	87	(a-1) Except as provided by Subsection (a-2), if the motor
88	88	vehicle is rented through a marketplace rental provider, the
89	89	marketplace rental provider shall collect, report, and pay the tax
90	90	on gross rental receipts to the comptroller in the manner
91	91	prescribed by Subsection (a). The marketplace rental provider
92	92	shall certify to the owner of a motor vehicle rented through the
93	93	provider that the provider has collected, reported, and paid the
94	94	tax. An owner who in good faith accepts the marketplace rental
95	95	provider's certification is not required to collect, report, or pay
96	96	the tax.
97	97	(a-2) The owner of a motor vehicle rented through a
98	98	marketplace rental provider may elect to report and pay the tax on
99	99	gross rental receipts to the comptroller. If the owner elects to
100	100	report and pay the tax under this subsection:
101	101	(1) the owner must:
102	102	(A) register as required by Section 152.065; and
103	103	(B) inform the marketplace rental provider in
104	104	writing of the election; and
105	105	(2) the marketplace rental provider shall forward the
106	106	tax collected by the provider to the owner.
107	107	(b) The owner of a motor vehicle subject to the tax on gross
108	108	rental receipts or, if the motor vehicle is rented through a
109	109	marketplace rental provider, the provider, shall add the tax to the
110	110	rental charge, and when added, the tax is:
111	111	(1) a part of the rental charge;
112	112	(2) a debt owed to the motor vehicle owner or
113	113	marketplace rental provider, as applicable, by the person renting
114	114	the vehicle; and
115	115	(3) recoverable at law in the same manner as the rental
116	116	charge.
117	117	(c) The comptroller may proceed against a person renting a
118	118	motor vehicle, the owner of the rented motor vehicle, or the
119	119	marketplace rental provider, as applicable, for any unpaid gross
120	120	rental receipts tax.
121	121	(d) In addition to any other penalty provided by law, the
122	122	owner of a motor vehicle subject to the tax on gross rental receipts
123	123	who is required to file a report as provided by this chapter and who
124	124	fails to timely file the report shall pay a penalty of $50. If the
125	125	motor vehicle is rented through a marketplace rental provider and
126	126	the provider is required to file a report under this chapter but
127	127	fails to timely file the report, the provider shall pay a penalty of
128	128	$50. The penalty provided by this subsection is assessed without
129	129	regard to whether the taxpayer subsequently files the report or
130	130	whether any taxes were due from the taxpayer for the reporting
131	131	period under the required report.
132	132	SECTION 5. Section 152.046(b), Tax Code, is amended to read
133	133	as follows:
134	134	(b) An owner of a motor vehicle on which the motor vehicle
135	135	sales or use tax has been paid who subsequently uses the vehicle for
136	136	rental [shall collect the gross rental receipts tax imposed by this
137	137	chapter from the person renting the vehicle. The owner] may credit
138	138	an amount equal to the motor vehicle sales or use tax paid by the
139	139	owner to the comptroller against the amount of gross rental
140	140	receipts due from the owner. This credit is not transferable and
141	141	cannot be applied against tax due and payable from the rental of
142	142	another vehicle belonging to the same owner.
143	143	SECTION 6. Section 152.063(b), Tax Code, is amended to read
144	144	as follows:
145	145	(b) Except as otherwise provided by Section 111.0041:
146	146	(1) the [The] owner of a motor vehicle used for rental
147	147	purposes shall keep for at least four years after the purchase of
148	148	the [a] motor vehicle records and supporting documents containing
149	149	[the following] information on the amount of:
150	150	(A) [(1)] total consideration for the motor
151	151	vehicle; and
152	152	(B) [(2)] motor vehicle sales or use tax paid on
153	153	the motor vehicle; and
154	154	(2) the owner of a motor vehicle used for rental
155	155	purposes and, if the motor vehicle is rented through a marketplace
156	156	rental provider, the provider, shall keep for at least four years
157	157	supporting documents containing information on the amount of:
158	158	(A) [(3)] gross rental receipts received by the
159	159	owner or provider, as applicable, from the rental of the motor
160	160	vehicle; and
161	161	(B) [(4)] gross rental receipts tax paid to the
162	162	comptroller by the owner or provider, as applicable, on each motor
163	163	vehicle used for rental purposes by the owner.
164	164	SECTION 7. Section 152.065, Tax Code, is amended to read as
165	165	follows:
166	166	Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner or a
167	167	marketplace rental provider required to collect, report, and pay a
168	168	tax on gross rental receipts imposed by this chapter and a seller
169	169	required to collect, report, and pay a tax on a seller-financed sale
170	170	shall register as a retailer with the comptroller in the same manner
171	171	as is required of a retailer under Subchapter F, Chapter 151.
172	172	SECTION 8. Subchapter D, Chapter 152, Tax Code, is amended
173	173	by adding Section 152.070 to read as follows:
174	174	Sec. 152.070. MARKETPLACE RENTAL PROVIDER'S REPORT. A
175	175	marketplace rental provider shall send to the owner of a motor
176	176	vehicle that is rented through the provider a report each month that
177	177	shows the amount of tax collected, reported, and paid for each motor
178	178	vehicle that the owner owns and that is rented through the provider.
179	179	The provider is not required to send the report to an owner who
180	180	elects to report and pay the tax under Section 152.045(a-2).
181	181	SECTION 9. This Act applies only to a rental agreement for
182	182	the rental of a motor vehicle entered into on or after the effective
183	183	date of this Act. A rental agreement for the rental of a motor
184	184	vehicle entered into before the effective date of this Act is
185	185	governed by the law in effect on the date the rental agreement was
186	186	entered into, and the former law is continued in effect for the
187	187	collection of taxes due and for civil and criminal enforcement of
188	188	the liability for those taxes.
189	189	SECTION 10. This Act takes effect October 1, 2023.