HB4379 - 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.

      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.