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H.B. 354 Peer-to-peer Car Sharing Act

Bill Sponsor:

Rep. Coleman, Kim F.
Floor Sponsor:

Sen. Anderegg, Jacob L.
  • Drafting Attorney: Amy L. West
  • Fiscal Analyst: Brian Wikle
  • Information
    • Last Action: 14 Mar 2019, House/ filed
    • Last Location: House file for bills not passed

H.B. 354

2nd Sub.

Representative Kim F. Coleman proposes the following substitute bill:


1     
PEER-TO-PEER CAR SHARING ACT

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kim F. Coleman

5     
Senate Sponsor: Jacob L. Anderegg

6     

7     LONG TITLE
8     General Description:
9          This bill enacts provisions related to the regulation of a peer-to-peer car sharing
10     company.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     prohibits a public entity from regulating a peer-to-peer car sharing company or a
15     peer-to-peer vehicle owner in the same manner as a motor vehicle rental company;
16          ▸     prohibits a public entity from regulating a peer-to-peer car rental transaction in the
17     same manner as a motor vehicle rental company transaction; and
18          ▸     exempts the rental of a motor vehicle that a peer-to-peer car sharing company
19     facilitates from certain taxes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          59-12-603, as last amended by Laws of Utah 2018, Chapters 258 and 312
27          59-12-1201, as last amended by Laws of Utah 2016, Chapters 184 and 291
28     ENACTS:
29          13-54-101, Utah Code Annotated 1953
30          13-54-102, Utah Code Annotated 1953
31          13-54-201, Utah Code Annotated 1953
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 13-54-101 is enacted to read:
35     
CHAPTER 54. PEER-TO-PEER CAR SHARING

36     
Part 1. General Provisions

37          13-54-101. Title.
38          This chapter is known as "Peer-to-Peer Car Sharing."
39          Section 2. Section 13-54-102 is enacted to read:
40          13-54-102. Definitions.
41          As used in this chapter:
42          (1) (a) "Motor vehicle rental company" means a person:
43          (i) in the business of renting motor vehicles to the public; and
44          (ii) that is exempted from sales and use tax under Title 59, Chapter 12, Sales and Use
45     Tax Act, for the purchase of a motor vehicle.
46          (2) (a) "Peer-to-peer car sharing company" means a peer-to-peer company that
47     facilitates the rental of an individual's private motor vehicle to another individual through a
48     peer-to-peer platform.
49          (b) "Peer-to-peer car sharing company" does not include a person that is exempted
50     from sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act, for the purchase of a
51     motor vehicle.
52          (3) "Peer-to-peer car rental transaction" means a private car rental:
53          (a) that a peer-to-peer car sharing company facilitates; and
54          (b) between two independent individuals whom the peer-to-peer company described in
55     Subsection (5)(a) does not employ.
56          (4) "Peer-to-peer company" means a person that uses a peer-to-peer platform to
57     connect independent individuals who agree to exchange a product or service.
58          (5) "Peer-to-peer platform" means an Internet-connected software service:
59          (a) that a peer-to-peer company provides; and
60          (b) through which independent individuals agree to exchange a product or service.
61          (6) "Peer-to-peer vehicle owner" means an individual who uses a peer-to-peer platform
62     to rent the individual's private motor vehicle to another individual.
63          (7) "Public entity" means:
64          (a) the state; or
65          (b) a political subdivision of the state.
66          Section 3. Section 13-54-201 is enacted to read:
67     
Part 2. Regulation

68          13-54-201. Prohibition of regulation.
69          Except as specifically authorized in statute, a public entity may not regulate:
70          (1) a peer-to-peer car sharing company or a peer-to-peer vehicle owner in the same or
71     substantially similar manner as a motor vehicle rental company; or
72          (2) a peer-to-peer car rental transaction in the same or substantially similar manner as a
73     transaction that a motor vehicle rental company facilitates.
74          Section 4. Section 59-12-603 is amended to read:
75          59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
76     required -- Advisory board -- Administration -- Collection -- Administrative charge --
77     Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
78     requirements.
79          (1) (a) [In] Subject to Subsection (1)(c), in addition to any other taxes, a county
80     legislative body may, as provided in this part, impose a tax as follows:
81          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
82     on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
83     and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
84     vehicle that is being repaired pursuant to a repair or an insurance agreement; and
85          (B) beginning on or after January 1, 1999, a county legislative body of any county
86     imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
87     Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
88     of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
89     for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
90     to a repair or an insurance agreement;
91          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
92     sales of the following that are sold by a restaurant:
93          (A) alcoholic beverages;
94          (B) food and food ingredients; or
95          (C) prepared food; and
96          (iii) a county legislative body of a county of the first class may impose a tax of not to
97     exceed .5% on charges for the accommodations and services described in Subsection
98     59-12-103(1)(i).
99          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
100     17-31-5.5.
101          (c) In accordance with Section 13-54-201, a county may not impose a tax described in
102     Subsection (1)(a) on the rental of a motor vehicle facilitated by a peer-to-peer car sharing
103     company as defined in Section 13-54-102.
104          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
105     for in Subsections (1)(a)(i) through (iii) may be used for:
106          (i) financing tourism promotion; and
107          (ii) the development, operation, and maintenance of:
108          (A) an airport facility;
109          (B) a convention facility;
110          (C) a cultural facility;
111          (D) a recreation facility; or
112          (E) a tourist facility.
113          (b) A county of the first class shall expend at least $450,000 each year of the revenue
114     from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
115     marketing and ticketing system designed to:
116          (i) promote tourism in ski areas within the county by persons that do not reside within
117     the state; and
118          (ii) combine the sale of:
119          (A) ski lift tickets; and
120          (B) accommodations and services described in Subsection 59-12-103(1)(i).
121          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
122     evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
123     Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
124     Part 5, Agency Bonds, to finance:
125          (a) an airport facility;
126          (b) a convention facility;
127          (c) a cultural facility;
128          (d) a recreation facility; or
129          (e) a tourist facility.
130          (4) (a) To impose the tax under Subsection (1), each county legislative body shall adopt
131     an ordinance imposing the tax.
132          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
133     same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
134     those items and sales described in Subsection (1).
135          (c) The name of the county as the taxing agency shall be substituted for that of the state
136     where necessary, and an additional license is not required if one has been or is issued under
137     Section 59-12-106.
138          (5) To maintain in effect its tax ordinance adopted under this part, each county
139     legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
140     Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
141     amendments to Part 1, Tax Collection.
142          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
143     board in accordance with Section 17-31-8, the county legislative body of the county of the first
144     class shall create a tax advisory board in accordance with this Subsection (6).
145          (b) The tax advisory board shall be composed of nine members appointed as follows:
146          (i) four members shall be residents of a county of the first class appointed by the
147     county legislative body of the county of the first class; and
148          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
149     towns within the county of the first class appointed by an organization representing all mayors
150     of cities and towns within the county of the first class.
151          (c) Five members of the tax advisory board constitute a quorum.
152          (d) The county legislative body of the county of the first class shall determine:
153          (i) terms of the members of the tax advisory board;
154          (ii) procedures and requirements for removing a member of the tax advisory board;
155          (iii) voting requirements, except that action of the tax advisory board shall be by at
156     least a majority vote of a quorum of the tax advisory board;
157          (iv) chairs or other officers of the tax advisory board;
158          (v) how meetings are to be called and the frequency of meetings; and
159          (vi) the compensation, if any, of members of the tax advisory board.
160          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
161     body of the county of the first class on the expenditure of revenue collected within the county
162     of the first class from the taxes described in Subsection (1)(a).
163          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
164     shall be administered, collected, and enforced in accordance with:
165          (A) the same procedures used to administer, collect, and enforce the tax under:
166          (I) Part 1, Tax Collection; or
167          (II) Part 2, Local Sales and Use Tax Act; and
168          (B) Chapter 1, General Taxation Policies.
169          (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
170     Subsections 59-12-205(2) through (6).
171          (b) Except as provided in Subsection (7)(c):
172          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
173     commission shall distribute the revenue to the county imposing the tax; and
174          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
175     according to the distribution formula provided in Subsection (8).
176          (c) The commission shall retain and deposit an administrative charge in accordance
177     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
178          (8) The commission shall distribute the revenue generated by the tax under Subsection
179     (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
180     following formula:
181          (a) the commission shall distribute 70% of the revenue based on the percentages
182     generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by
183     the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
184          (b) the commission shall distribute 30% of the revenue based on the percentages
185     generated by dividing the population of each county collecting a tax under Subsection
186     (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
187          (9) (a) For purposes of this Subsection (9):
188          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
189     County Annexation.
190          (ii) "Annexing area" means an area that is annexed into a county.
191          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
192     enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
193     change shall take effect:
194          (A) on the first day of a calendar quarter; and
195          (B) after a 90-day period beginning on the date the commission receives notice meeting
196     the requirements of Subsection (9)(b)(ii) from the county.
197          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
198          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
199          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
200          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
201          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
202     (9)(b)(ii)(A), the rate of the tax.
203          (c) (i) If the billing period for a transaction begins before the effective date of the
204     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
205     the tax or the tax rate increase shall take effect on the first day of the first billing period that
206     begins after the effective date of the enactment of the tax or the tax rate increase.
207          (ii) If the billing period for a transaction begins before the effective date of the repeal
208     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
209     rate decrease shall take effect on the first day of the last billing period that began before the
210     effective date of the repeal of the tax or the tax rate decrease.
211          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
212     after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
213     tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
214          (A) on the first day of a calendar quarter; and
215          (B) after a 90-day period beginning on the date the commission receives notice meeting
216     the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
217          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
218          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
219     repeal, or change in the rate of a tax under this part for the annexing area;
220          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
221          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
222          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
223     (9)(d)(ii)(A), the rate of the tax.
224          (e) (i) If the billing period for a transaction begins before the effective date of the
225     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
226     the tax or the tax rate increase shall take effect on the first day of the first billing period that
227     begins after the effective date of the enactment of the tax or the tax rate increase.
228          (ii) If the billing period for a transaction begins before the effective date of the repeal
229     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
230     rate decrease shall take effect on the first day of the last billing period that began before the
231     effective date of the repeal of the tax or the tax rate decrease.
232          Section 5. Section 59-12-1201 is amended to read:
233          59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
234     collection, and enforcement of tax -- Administrative charge -- Deposits.
235          (1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
236     short-term leases and rentals of motor vehicles not exceeding 30 days.
237          (b) The tax imposed in this section is in addition to all other state, county, or municipal
238     fees and taxes imposed on rentals of motor vehicles.
239          (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
240     imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
241          (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
242     take effect on the first day of the first billing period:
243          (A) that begins after the effective date of the tax rate increase; and
244          (B) if the billing period for the transaction begins before the effective date of a tax rate
245     increase imposed under Subsection (1).
246          (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
247     rate decrease shall take effect on the first day of the last billing period:
248          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
249     and
250          (B) if the billing period for the transaction begins before the effective date of the repeal
251     of the tax or the tax rate decrease imposed under Subsection (1).
252          (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
253          (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
254          (b) the motor vehicle is rented as a personal household goods moving van; [or]
255          (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
256     replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
257     insurance agreement[.]; or
258          (d) the motor vehicle rental is facilitated by a peer-to-peer car sharing company as
259     defined in Section 13-54-102, in accordance with Section 13-54-201.
260          (4) (a) (i) The tax authorized under this section shall be administered, collected, and
261     enforced in accordance with:
262          (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
263     Tax Collection; and
264          (B) Chapter 1, General Taxation Policies.
265          (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
266     Subsections 59-12-103(4) through (10) or Section 59-12-107.1 or 59-12-123.
267          (b) The commission shall retain and deposit an administrative charge in accordance
268     with Section 59-1-306 from the revenues the commission collects from a tax under this part.
269          (c) Except as provided under Subsection (4)(b), all revenue received by the
270     commission under this section shall be deposited daily with the state treasurer and credited
271     monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
Bill Status / Votes
• Senate Actions • House Actions • Fiscal Actions • Other Actions
DateActionLocationVote
2/15/2019 Bill Numbered but not DistributedLegislative Research and General Counsel
2/15/2019 Numbered Bill Publicly DistributedLegislative Research and General Counsel
2/15/2019 House/ received bill from Legislative ResearchClerk of the House
2/15/2019 House/ 1st reading (Introduced)House Rules Committee
2/21/2019 House/ received fiscal note from Fiscal AnalystHouse Rules Committee
2/21/2019 House/ to standing committeeHouse Business and Labor Committee
2/26/2019 House Comm - Substitute Recommendation from # 0 to # 1House Business and Labor Committee12 0 3
2/26/2019 House Comm - Amendment Recommendation # 1House Business and Labor Committee12 0 3
2/26/2019 House Comm - Favorable RecommendationHouse Business and Labor Committee11 2 2
2/27/2019 (10:15:13 AM)House/ comm rpt/ substituted/ amendedHouse Business and Labor Committee
2/27/2019 (10:15:14 AM)House/ 2nd readingHouse 3rd Reading Calendar for House bills
3/1/2019 (4:23:41 PM)House/ 3rd readingHouse 3rd Reading Calendar for House bills
3/1/2019 (4:24:01 PM)House/ circledHouse 3rd Reading Calendar for House billsVoice vote
3/5/2019 (11:42:03 AM)House/ uncircledHouse 3rd Reading Calendar for House billsVoice vote
3/5/2019 (11:43:22 AM)House/ substituted from # 1 to # 2House 3rd Reading Calendar for House billsVoice vote
3/5/2019 (12:10:40 PM)House/ passed 3rd readingSenate Secretary50 22 3
3/5/2019 (12:10:42 PM)House/ to SenateSenate Secretary
3/5/2019 Senate/ received from HouseWaiting for Introduction in the Senate
3/5/2019 Senate/ 1st reading (Introduced)Senate Rules Committee
3/7/2019 Senate/ to standing committeeSenate Transportation, Public Utilities, Energy, and Technology Committee
3/7/2019 LFA/ fiscal note sent to sponsorSenate Transportation, Public Utilities, Energy, and Technology Committee
3/8/2019 LFA/ fiscal note publicly availableSenate Transportation, Public Utilities, Energy, and Technology Committee
3/11/2019 Senate Comm - Motion to Recommend FailedSenate Transportation, Public Utilities, Energy, and Technology Committee1 5 2
3/11/2019 Senate Comm - Returned to RulesSenate Transportation, Public Utilities, Energy, and Technology Committee
3/11/2019 Senate/ comm rpt/ sent to RulesSenate Rules Committee
3/14/2019 Senate/ strike enacting clauseSenate Secretary
3/14/2019 Senate/ to HouseClerk of the House
3/14/2019 House/ received from SenateClerk of the House
3/14/2019 House/ filedHouse file for bills not passed