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Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.
Estimated Two-year Net Impact to General Revenue Related Funds for HB 2415, As Introduced: a
positive impact of $61,130,000 through the biennium ending August 31, 2023.
HB 2415 would require a marketplace rental provider to collect and report applicable tax on a car rental from the individual renting the car and to submit those taxes to the county or municipality. HB 2415 would create an offense if the owner or provider required to file a report fails to make and retain complete records for four years. The bill also would provide clarification on the collection, record, and payment of taxes on rental cars through a marketplace rental provider.
Texas Action opposes HB 2415. Upon first review, this bill appears to make the tax system more equitable for traditional and peer-to-peer car rentals. However, unless other taxes are also going to change to be in alignment, the applicability of this bill would adversely affect only one segment of this market. Peer-to-peer car rentals do not operate the same way, or on the same scale, as traditional car rental companies and should not be treated the same for tax purposes. To do so would use the tax system to the advantage of large entrenched companies in order to make it more difficult for unwanted competition to take root.
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