Sales/Use/Indirect:
Texas: Letter Ruling Addresses Car-Sharing Platform and Motor Vehicle Gross Rental Receipts Taxation
Letter No. 202207023L, Tex. Comptroller of Public Accounts (7/15/22). In a matter involving an out-of-state headquartered “peer-to-peer car sharing platform” and whether it is responsible for collecting and remitting motor vehicle gross rental receipts tax imposed by Texas Tax Code Chapter 152, the Texas Comptroller of Public Accounts (Comptroller) explained that an owner of a motor vehicle generally is responsible for collecting the tax on charges for the rental of its vehicle to another. However, the car-sharing platform in this case was not the owner of the vehicles listed on the platform and thus was not responsible for collecting such tax. Rather, according to the Comptroller, persons listing vehicles on the platform are considered the owners of the motor vehicles and are required to collect and remit applicable Texas tax on their gross rental receipts received for the rental of their motor vehicles. Please contact us with any questions.
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