House Bill No. 5983 proposes significant amendments to the sales and use tax rates for peer-to-peer car sharing services in Connecticut. The bill repeals subdivision (1) of section 12-408 of the general statutes and introduces a new tax rate of nine and thirty-five-hundredths percent for peer-to-peer car sharing agreements lasting thirty consecutive calendar days or less, effective July 1, 2025. This new rate aligns with the existing tax rate for short-term rentals of passenger motor vehicles. Additionally, the bill makes technical corrections to definitions related to peer-to-peer car sharing, clarifying terms such as "shared vehicle" and "car sharing platform," while maintaining existing tax rates for other sales and services.

Furthermore, the bill outlines a structured approach to municipal revenue sharing and transportation funding, mandating that from July 1, 2021, to June 30, 2023, 7.9% of state tax revenues be deposited into the municipal revenue sharing account. After this period, the percentage will continue to be allocated to the Municipal Revenue Sharing Fund. The bill also specifies a phased increase in the percentage of tax revenues directed to the Special Transportation Fund, culminating in a full 100% deposit starting July 1, 2022. Additionally, it establishes a requirement for 100% of certain tax revenues to be deposited into the regional planning incentive account beginning September 30, 2025. Overall, HB5983 aims to modernize the tax framework for peer-to-peer car sharing and enhance revenue sharing mechanisms in the state.

Statutes affected:
Committee Bill:
FIN Joint Favorable:
File No. 856: