The bill, S.B. No. 1363, aims to regulate the collection, remittance, and administration of taxes on motor vehicles rented through marketplace rental providers in Texas. It introduces new provisions that require marketplace rental providers to collect taxes for municipalities or counties when a motor vehicle is rented through their platform. Specifically, the bill mandates that the provider add the applicable taxes to the rental charge, which becomes a debt owed by the renter to the provider. Additionally, it establishes that all gross receipts from rentals through these providers are presumed to be subject to tax unless a valid exemption certificate is presented.

The bill also outlines the responsibilities of both vehicle owners and marketplace rental providers regarding record-keeping and reporting of taxes. Owners and providers are required to maintain records for four years and report the taxes collected to the appropriate authorities. The legislation includes penalties for failure to comply with reporting requirements and clarifies that owners may elect to report and pay taxes directly to the municipality or county. Furthermore, it defines "marketplace rental provider" and specifies the conditions under which they are exempt from certain tax collection responsibilities. The act is set to take effect on October 1, 2025, and applies only to rental agreements entered into on or after that date.

Statutes affected:
Introduced: Local Government Code 334.105, Local Government Code 334.109, Local Government Code 334.110, Local Government Code 334.111, Local Government Code 334.113, Tax Code 152.001, Tax Code 152.045, Tax Code 152.046, Tax Code 152.063, Tax Code 152.065 (Tax Code 152, Local Government Code 334)