HB 1209
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 1209 (Delegate Luedtke)
Ways and Means Budget and Taxation
Sales and Use Tax - Peer-to-Peer Car Sharing - Alterations
This bill repeals the June 30, 2021 termination date for the 8% sales and use tax imposed
on peer-to-peer car sharing and establishes a new sales and use tax rate for certain
peer-to-peer car sharing beginning in fiscal 2022. In addition, sales and use tax revenue
from peer-to-peer car sharing must be distributed to the Transportation Trust Fund (TTF)
and the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund (CB 2010) in the same
manner as the sales and use tax revenue from short-term vehicle rentals. The bill takes
effect June 1, 2021, except for the sales and use tax provisions for peer-to-peer car
sharing, which take effect July 1, 2021.
Fiscal Summary
State Effect: Total State revenues increase by $91,800 in FY 2022 and by $117,900 in
FY 2026. General fund/Blueprint for Maryland’s Future Fund (BMFF) revenues decrease
by $275,500 in FY 2022 and by $353,600 in FY 2026. Special fund revenues (TTF and
CB 2010) increase by $367,300 in FY 2022 and by $471,500 in FY 2026. Administrative
expenditures for the Comptroller’s Office increase by a minimal amount in FY 2022.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
SF Revenue $367,300 $401,200 $426,000 $448,900 $471,500
GF/SF Rev. ($275,500) ($300,900) ($319,500) ($336,700) ($353,600)
GF Expenditure $- $0 $0 $0 $0
Net Effect $91,800 $100,300 $106,500 $112,200 $117,900
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: Minimal.
 Analysis
Bill Summary: The sales and use tax rate for peer-to-peer car sharing continues at 8%
beyond fiscal 2021; however, beginning in fiscal 2022, the sales and use tax rate is 11.5%
if the vehicle is a passenger car, a multipurpose vehicle, or a motorcycle that is part of a
fleet of vehicles that includes more than 10 vehicles owned by the same person.
Current Law:
Peer-to-peer Car Sharing
A peer-to-peer car sharing program is an online platform that connects vehicle owners with
drivers to enable the sharing of motor vehicles for financial consideration. Chapter 852 of
2018 established a (1) regulatory framework for peer-to-peer car sharing in the State and
(2) a sales and use tax rate of 8% for related sales and charges, which was to terminate
June 30, 2020, reverting to the standard 6% rate. Chapter 567 of 2020 extended the
termination date of the 8% tax rate through June 30, 2021.
Short-term Vehicle Rentals
The State imposes an 11.5% sales and use tax on short-term rentals of passenger cars,
multipurpose passenger vehicles, and motorcycles. The State collected $70.4 million from
short-term vehicle rentals in fiscal 2020, with 55% of the revenues allocated to CB 2010
and 45% to TTF.
State Revenues: Under current law, the sales and use tax rate on peer-to-peer car sharing
will decline from 8% to 6% beginning in fiscal 2022. The State is estimated to collect
approximately $275,500 in State sales taxes from peer-to-peer car sharing in fiscal 2022
and $353,600 in fiscal 2026.
As a result of the tax rate increases, total sales and use tax revenues from peer-to-peer
car sharing will increase by $91,800 in fiscal 2022 and by $117,900 in fiscal 2026. Under
current law, sales and use tax revenues from peer-to-peer car sharing are distributed
between the general fund and the Blueprint for Maryland’s Future Fund; however,
beginning in fiscal 2022, the bill directs sales and use tax revenues from peer-to-peer
car sharing to CB 2010 and TTF. Exhibit 1 shows the effect of the bill on State revenues.
This estimate does not include any additional revenues resulting from the 11.5% tax rate
on vehicles used as part of a fleet. To the extent that peer-to-peer car sharing results from
a vehicle within a fleet, the increase in State revenues will be higher.
HB 1209/ Page 2
 Exhibit 1
Fiscal Impact of Legislative Changes
Fiscal 2022-2026
State Revenues FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
GF/BMFF ($275,500) ($300,900) ($319,500) ($336,700) ($353,600)
TTF 165,300 180,500 191,700 202,000 212,200
CB 2010 202,000 220,700 234,300 246,900 259,300
Total $91,800 $100,300 $106,500 $112,200 $117,900
BMFF: Blueprint for Maryland’s Future Fund
CB 2010: Chesapeake and Atlantic Coastal Bays 2010 Trust Fund
GF: General Fund
TTF: Transportation Trust Fund
State Expenditures: The Comptroller’s Office will incur a one-time minimal expenditure
increase in fiscal 2022 to notify individuals involved in peer-to-peer car sharing of the sales
tax rate changes.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Comptroller’s Office; Maryland Department of Transportation;
Public Service Commission; Department of Legislative Services
Fiscal Note History: First Reader - March 3, 2021
rh/hlb Third Reader – March 28, 2021
Revised – Amendment(s) – March 28, 2021
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1209/ Page 3


Statutes affected:
Text - First - Sales and Use Tax - Peer-to-Peer Car Sharing - Alterations: 21-302.1 Tax General, 11-101 Tax General, 11-104 Tax General, 2-023 Tax General
Text - Third - Sales and Use Tax - Peer-to-Peer Car Sharing - Alterations: 21-302.1 Tax General, 11-101 Tax General, 11-104 Tax General, 2-023 Tax General