Substitute Bill No. 1447 introduces a new tax framework for peer-to-peer car sharing services, imposing a sales and use tax rate of nine and thirty-five-hundredths percent on rentals lasting thirty consecutive days or less. This tax rate is incorporated into the existing tax structure under subdivision (1) of section 12-408 of the general statutes, which has been amended to include this specific provision. The bill also mandates that a portion of tax revenues be allocated to various funds, including the Municipal Revenue Sharing Fund and the Special Transportation Fund, with specific percentages designated for different time frames. Additionally, the bill requires peer-to-peer car sharing facilitators to obtain a permit to collect taxes on transactions, ensuring compliance and proper revenue collection.

Moreover, the legislation repeals the previous requirement for legislative approval to study mileage-based user fees on state highways, indicating a shift towards more flexible transportation funding evaluations. It also repeals and replaces subdivision (1) of section 12-411, which outlines excise taxes on tangible personal property and services, including new tax rates for peer-to-peer car sharing and adjustments to existing rates for vehicle rentals. The bill redefines key terms related to car sharing, clarifying the roles and responsibilities of peer-to-peer car sharing facilitators and ensuring that shared vehicle owners are not liable for tax collection if the facilitator has already fulfilled that obligation. Overall, the bill aims to modernize the regulatory landscape for car sharing while ensuring appropriate revenue allocation to support municipal and transportation needs, with an effective date set for July 1, 2025.

Statutes affected:
Raised Bill:
TRA Joint Favorable Substitute:
File No. 543:
FIN Joint Favorable: