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.