89R11818 CJC-F     By: Nichols S.B. No. 1363       A BILL TO BE ENTITLED   AN ACT   relating to the collection, remittance, and administration of   certain taxes on motor vehicles rented through a marketplace rental   provider; imposing a penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 334.105, Local Government Code, is   amended by adding Subsection (c) to read as follows:          (c)  Notwithstanding Subsections (a) and (b), if a motor   vehicle subject to the tax imposed under this subchapter is rented   through a marketplace rental provider, the marketplace rental   provider shall collect the tax for the benefit of the municipality   or county. The marketplace rental provider shall add the tax   imposed under this subchapter, if applicable, and the gross rental   receipts tax imposed by Chapter 152, Tax Code, to the rental charge,   and the sum of the taxes is part of the rental charge, is a debt owed   to the marketplace rental provider by the person renting the   vehicle, and is recoverable at law in the same manner as the rental   charge.          SECTION 2.  Section 334.109, Local Government Code, is   amended to read as follows:          Sec. 334.109.  GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All   gross receipts of an owner of a motor vehicle or, if the motor   vehicle is rented through a marketplace rental provider, of the   provider from the rental of the motor vehicle are presumed to be   subject to the tax imposed by this subchapter, except for gross   receipts for which the owner or marketplace rental provider has   accepted in good faith a properly completed exemption certificate.          SECTION 3.  Section 334.110(a), Local Government Code, is   amended to read as follows:          (a)  The owner of a motor vehicle used for rental purposes   who is required to file a report under this subchapter or, if the   motor vehicle is rented through a marketplace rental provider and   the provider is required to file a report under this subchapter, the   provider shall keep for four years records and supporting documents   containing the following information on the amount of:                (1)  gross rental receipts received from the rental of   the motor vehicle; and                (2)  the tax imposed under this subchapter and paid to   the municipality or county by the owner or the marketplace rental   provider, as applicable, on each motor vehicle used for rental   purposes by the owner.          SECTION 4.  Section 334.111(a), Local Government Code, is   amended to read as follows:          (a)  An owner of a motor vehicle required to file a report   under this subchapter or, if applicable, a marketplace rental   provider required to file a report under this subchapter commits an   offense if the owner or provider fails to make and retain complete   records for the four-year period required by Section 334.110.          SECTION 5.  Section 334.113, Local Government Code, is   amended by amending Subsection (a) and adding Subsections (a-1) and   (a-2) to read as follows:          (a)  Except as otherwise provided by this section or another   provision of this subchapter, the [The] owner of a motor vehicle   required to collect the tax imposed under this subchapter shall   report and pay [send] the taxes collected to the municipality or   county as provided by the ordinance or order imposing the tax.          (a-1)  Except as provided by Subsection (a-2), if a   marketplace rental provider collects the tax imposed under this   subchapter, the marketplace rental provider shall report and pay   the taxes collected to the municipality or county as provided by the   ordinance or order imposing the tax. The marketplace rental   provider shall certify to the owner of a motor vehicle rented   through the provider that the provider has collected, reported, and   paid the tax to the municipality or county. An owner who in good   faith accepts the marketplace rental provider's certification is   not required to collect, report, or pay the tax to the municipality   or county.          (a-2)  The owner of a motor vehicle rented through a   marketplace rental provider may elect to report and pay the tax   imposed under this subchapter to the municipality or county. If the   owner elects to report and pay the tax under this subsection:                (1)  the owner must:                      (A)  register as required by Section 152.065, Tax   Code; and                      (B)  inform the marketplace rental provider in   writing of the election; and                (2)  the marketplace rental provider shall forward the   tax collected by the provider to the owner.          SECTION 6.  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 the   marketplace rental 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 7.  Subchapter A, Chapter 152, Tax Code, is amended   by adding Section 152.0011 to read as follows:          Sec. 152.0011.  MARKETPLACE RENTAL PROVIDER. (a) Subject   to Subsection (b), in this chapter, "marketplace rental provider"   means a person who:                (1)  operates any type of marketplace, including a   store with a physical location, an Internet website, a software or   mobile application, or a catalog, by which the owner of a motor   vehicle lists, markets, or advertises the owner's motor vehicle for   rental by others for consideration in this state;                (2)  facilitates the rental of the owner's motor   vehicle by another person by communicating between the owner and   the other person the terms of the agreement and the acceptance of   those terms; and                (3)  directly or indirectly collects or processes the   receipts or rental charges paid by the person renting the motor   vehicle for the owner of the motor vehicle.          (b)  The term "marketplace rental provider" does not include   a person who lists, markets, or advertises motor vehicles for   rental by others if:                (1)  the person lists, markets, or advertises only   motor vehicles registered in the manner provided under Section   152.061; and                (2)  the owners of the motor vehicles described by   Subdivision (1) collect, report, and pay the tax imposed under   Section 152.026 to the comptroller in the same manner as the tax   under Chapter 151 is collected, reported, and paid by a retailer   under that chapter.          SECTION 8.  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)  Except as provided by Subsection (a-2), if the motor   vehicle is rented through a marketplace rental provider, the   marketplace rental provider shall collect, report, and pay the tax   on gross rental receipts to the comptroller in the manner   prescribed by Subsection (a). The marketplace rental provider   shall certify to the owner of a motor vehicle rented through the   provider that the provider has collected, reported, and paid the   tax. An owner who in good faith accepts the marketplace rental   provider's certification is not required to collect, report, or pay   the tax.          (a-2)  The owner of a motor vehicle rented through a   marketplace rental provider may elect to report and pay the tax on   gross rental receipts to the comptroller. If the owner elects to   report and pay the tax under this subsection:                (1)  the owner must:                      (A)  register as required by Section 152.065; and                      (B)  inform the marketplace rental provider in   writing of the election; and                (2)  the marketplace rental provider shall forward the   tax collected by the provider to the owner.          (b)  The owner of a motor vehicle subject to the tax on gross   rental receipts or, if the motor vehicle is rented through a   marketplace rental provider, the 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   marketplace rental 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, the owner of the rented motor vehicle, or the   marketplace rental 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 rented through a marketplace rental provider and   the provider is required to file a report under this chapter but   fails to timely file the report, the 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.          SECTION 9.  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 from the owner. 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.          SECTION 10.  Section 152.063(b), Tax Code, is amended to   read as follows:          (b)  Except as otherwise provided by Section 111.0041:                (1)  the [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:                      (A) [(1)]  total consideration for the motor   vehicle; and                      (B) [(2)]  motor vehicle sales or use tax paid on   the motor vehicle; and                (2)  the owner of a motor vehicle used for rental   purposes and, if the motor vehicle is rented through a marketplace   rental provider, the provider shall keep for at least four years   supporting documents containing information on the amount of:                      (A) [(3)]  gross rental receipts received by the   owner or provider, as applicable, from the rental of the motor   vehicle; and                      (B) [(4)]  gross rental receipts tax paid to the   comptroller by the owner or provider, as applicable, on each motor   vehicle used for rental purposes by the owner.          SECTION 11.  Section 152.065, Tax Code, is amended to read as   follows:          Sec. 152.065.  REQUIRED PERMITS. A motor vehicle owner or a   marketplace rental 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 12.  Subchapter D, Chapter 152, Tax Code, is amended   by adding Section 152.070 to read as follows:          Sec. 152.070.  MARKETPLACE RENTAL PROVIDER'S REPORT. A   marketplace rental provider shall send to the owner of a motor   vehicle that is rented through the provider a report each month that   shows the amount of tax collected, reported, and paid for each motor   vehicle that the owner owns and that is rented through the provider.   The provider is not required to send the report to an owner who   elects to report and pay the tax under Section 152.045(a-2).          SECTION 13.  This Act applies only to a rental agreement for   the rental of a motor vehicle entered into on or after the effective   date of this Act. A rental agreement for the rental of a motor   vehicle entered into before the effective date of this Act is   governed by the law in effect on the date the rental agreement was   entered into, and the former law is continued in effect for the   collection of taxes due and for civil and criminal enforcement of   the liability for those taxes.          SECTION 14.  This Act takes effect October 1, 2025.