TX
Texas Senate Bill SB1363

Texas 2025 - 89th Regular

Texas Senate Bill SB1363

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.

Impact

The bill has significant implications for state laws concerning local taxation. It alters aspects of the Local Government Code and the Tax Code, specifically by adding provisions for the obligations of marketplace rental providers. The new framework seeks to clarify the roles of vehicle owners and rental providers regarding tax responsibilities and create a structured method for reporting and remittance. Consequently, local governments may see an increase in tax revenue from vehicle rentals due to improved compliance from providers who may have previously been outside the scope of local tax laws.

Summary

SB1363 seeks to modify the collection, remittance, and administration of certain taxes on motor vehicles rented through marketplace rental providers. The bill mandates that these providers are responsible for collecting taxes on rentals and redistributing them to the relevant municipalities or counties. This is aimed at addressing the changing landscape of vehicle rentals, especially as more transactions move online and through digital platforms. By placing the responsibility on the rental providers, the bill simplifies the tax collection process for municipalities and ensures a more reliable revenue stream from rentals.

Contention

Notably, there has been some contention surrounding the enforcement of this bill. Critics have expressed concerns about the potential administrative burdens it places on marketplace providers, which were traditionally not held to such requirements. Moreover, there are discussions regarding the fairness of the tax burden, particularly for smaller rental operations that may not have the resources to handle the new tax compliance structures. Balancing the ease of tax collection for local governments with the operational realities of businesses in the rental market remains a point of debate among stakeholders.

Texas Constitutional Statutes Affected

Local Government Code

  • Chapter 334. Sports And Community Venues
    • Section: 105
    • Section: 109
    • Section: 110
    • Section: 111
    • Section: 113

Tax Code

  • Chapter 152. Taxes On Sale, Rental, And Use Of Motor Vehicles
    • Section: 063
    • Section: 065
    • Section: New Section
    • Section: 045
    • Section: 046

Companion Bills

No companion bills found.

Previously Filed As

TX HB3209

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.

TX HB4602

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.

TX SB1498

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.

TX HB2991

Relating to toll collection and enforcement by toll project entities; authorizing an administrative fee; imposing a civil penalty.

TX SB316

Relating to toll collection and enforcement by toll project entities; authorizing an administrative fee; imposing a civil penalty.

TX HB2226

Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.

TX SB2

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.

TX HB2

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.

TX HB5115

Relating to the collection of state, municipal, and county hotel occupancy taxes by an accommodations intermediary.

TX SB2356

Relating to the collection of state, municipal, and county hotel occupancy taxes by an accommodations intermediary.

Similar Bills

AR SB329

To Create The Online Marketplace Guarantees Act.

TX SB1713

Relating to a study on sales and use tax compliance.

TX HB2872

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider.

TX SB1578

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider.

TX HB4602

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.

TX SB890

Relating to the administration and collection of sales and use taxes applicable to sales involving marketplace providers.

TX HB1525

Relating to the administration and collection of sales and use taxes applicable to sales involving marketplace providers.

TX HB3209

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.