Bill > SB1363

This bill modifies Texas law regarding tax collection for motor vehicle rentals, specifically introducing provisions for marketplace rental providers. The bill defines a "marketplace rental provider" as an entity that operates a platform (like a website or app) where vehicle owners can list their cars for rent, facilitates the rental transaction, and processes rental payments. Under the new law, these marketplace providers will now be responsible for collecting and remitting local municipal and county taxes on vehicle rentals, as well as the state's gross rental receipts tax. The bill allows vehicle owners to elect to report and pay taxes themselves if they choose, but otherwise places the tax collection burden on the marketplace provider. Marketplace providers must keep records for four years, send monthly tax reports to vehicle owners, and can be penalized $50 for failing to timely file reports. The law will apply only to rental agreements entered into on or after October 1, 2025, ensuring a clear transition period for businesses to adapt to the new requirements. This legislation aims to modernize tax collection processes for vehicle rentals in the digital marketplace era by creating clear guidelines for emerging online rental platforms.