Texas 2023 - 88th Regular

Texas House Bill HB4602

Filed
3/9/23  
Out of Senate Committee
 
Voted on by Senate
 
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 implementation of HB 4602 is expected to significantly affect local government revenues by ensuring that taxes are collected from a sector that has previously not adhered to traditional rental car tax structures. The bill aims to level the playing field between traditional rental companies and newer marketplace providers, which many believe will lead to increased compliance and fair tax collection practices. This shift will also help local municipalities regain some lost revenue from the influx of peer-to-peer car rental services.

Summary

House Bill 4602 focuses on the taxation of motor vehicles rented through marketplace rental providers. This legislation mandates that these providers collect, report, and remit taxes on gross rental receipts to local governments. The bill specifies the roles and responsibilities imposed on marketplace rental providers, ensuring they add applicable taxes to the rental charges and manage the remittance effectively. The intent is to create a more uniform system for taxing rentals that reflects the growing trend of car sharing and peer-to-peer rental services.

Sentiment

Sentiment around HB 4602 is mixed. On one hand, proponents, such as traditional rental companies and local government representatives, argue that the bill provides necessary regulatory clarity and fairness among different rental service providers. They believe it will ensure that all entities contributing to the local economy are taxed equally. In contrast, opponents, particularly those from peer-to-peer rental platforms, view the bill as an imposition of burdensome regulations that may hinder innovation and competition in the market.

Contention

Notable points of contention include the penalties for non-compliance outlined within the bill, which some stakeholders view as excessive. Critics argue that imposing strict penalties could deter individuals from participating in marketplace rental activities. Additionally, there are concerns surrounding the overall feasibility of the new tax collection process imposed on marketplace rental providers and whether it will function effectively without putting undue stress on these businesses.

Companion Bills

TX SB1498

Identical 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.

Previously Filed As

TX SB1363

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

TX 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.

LA HB374

Includes accommodations intermediaries within the definition of a marketplace facilitator for purposes of collection and remittance of sales and use taxes on remote sales (EN +$350,000 OF EX See Note)

AZ HB2430

short-term rentals; online lodging marketplace

AZ HB2131

Short-term rentals; online lodging marketplace

NJ A4470

"Video Game Marketplace Child Protection and Anti-Trafficking Act," creates new penalties for non-reporting of suspected human trafficking through video game marketplaces.

NJ S3891

"Video Game Marketplace Child Protection and Anti-Trafficking Act," creates new penalties for non-reporting of suspected human trafficking through video game marketplaces.

GA SB522

Excise Taxes on Rental Motor Vehicles; fee on rental motor vehicles; provide

VA HB765

Rental home marketplace guarantees; transactions involving advertisement, sale, etc., penalty.

PA HB2303

Providing for temporary lodging at short-term rentals; and imposing penalties.

Similar Bills

AR SB329

To Create The Online Marketplace Guarantees Act.

TX SB1363

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

TX SB1906

Relating to increasing the interest rate of certain consumer loans.

AR SB62

To Terminate The Arkansas Health And Opportunity For Me Program; And To Transfer All Beneficiaries In The Arkansas Health And Opportunity For Me Program To The Traditional Arkansas Medicaid Program.

AR SB527

To Amend The Arkansas Health And Opportunity For Me Act Of 2021; And To Increase The Medical-loss Ratio In The Arkansas Health And Opportunity For Me Program.

PA SB962

Eliminating school district property taxes; imposing county and school district taxes; establishing the School District Emergency Fund and the School District Property Tax Elimination Fund; consolidating Articles II and III of the Tax Reform Code of 1971; in preliminary provisions relating to sales and use tax, providing for definitions; in taxation generally relating to sales and use tax, providing for exclusions and for transfer to county sales and use tax accounts; in preliminary provisions relating to personal income tax, providing for definitions; and making repeals.

PA HB1649

Eliminating school district property taxes; imposing county and school district taxes; establishing the School District Emergency Fund and the School District Property Tax Elimination Fund; consolidating Articles II and III of the Tax Reform Code of 1971; in preliminary provisions relating to sales and use tax, providing for definitions; in taxation generally relating to sales and use tax, providing for exclusions and for transfer to county sales and use tax accounts; in preliminary provisions relating to personal income tax, providing for definitions; and making repeals.

TX HB1942

Relating to the participation of an advanced practice registered nurse as a participating or preferred provider for health maintenance organizations and preferred provider benefit plans.