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.