Phone: (517) 373-8080
TAXATION OF PEER-TO-PEER CAR SHARING
House Bill 6376 as introduced Analysis available at
Sponsor: Rep. Pat Outman http://www.legislature.mi.gov
Committee: Regulatory Reform
House Bill 6376 would amend the Use Tax Act to provide that peer-to-peer car sharing
receipts under a car sharing program agreement are exempt from the tax under the act if the
vehicle being shared was previously subject to the sales or use tax in Michigan or a comparable
tax of another state.
In addition, the bill would provide that a marketplace facilitator that has nexus in the state must
collect and remit any tax due on all taxable peer-to-peer car sharing transactions under a car
sharing program agreement facilitated by a marketplace facilitator as part of a peer-to-peer car
Finally, the bill would amend the act’s definition of the term lease or rental to provide that it
includes peer-to-peer car sharing pursuant to a car sharing program agreement.
MCL 205.92b et seq.
Peer-to-Peer Car Sharing Program Act (HB 4917)
As used in the bill, the terms car sharing program agreement and peer-to-peer car sharing
would have the same definitions as in section 3 of the Peer-to-Peer Car Sharing Program Act
(proposed by House Bill 4917).
Peer-to-peer car sharing would mean the authorized use of a vehicle by an individual
other than the vehicle's owner through a peer-to-peer car sharing program. Peer-to-
peer car sharing would not include either of the following:
• Car rental or rental activity by a car rental company as defined in the Michigan
Consumer Protection Act.
• A transportation network company prearranged ride as that term is defined in
the Limousine, Taxicab, and Transportation Network Company Act.
Peer-to-peer car sharing program would mean a business platform that connects
vehicle owners with drivers to enable the sharing of vehicles for financial
consideration. Peer-to-peer car sharing program would not include any of the
• A car rental company.
• A transportation network company.
• A service provider that is solely providing hardware or software as a service to
a person that is not effectuating payment of financial consideration for the use
of a shared vehicle.
House Fiscal Agency Page 1 of 2
Car sharing program agreement would mean the terms and conditions applicable to a
shared vehicle owner and a shared vehicle driver that govern the use of a shared vehicle
through a peer-to-peer car sharing program. Car sharing program agreement would not
include either of the following:
• A car rental agreement by a car rental company or a similar agreement.
• An agreement for a transportation network company prearranged ride.
As written, the bill would not be expected to have any impact on use tax collections assuming
sales or use taxes were already collected and remitted when the vehicle was purchased and
registered. According to the Department of Treasury, HB 6376 codifies the treatment already
outlined in Revenue Administrative Bulletin 2021-22.1
Legislative Analyst: Josh Roesner
Fiscal Analyst: Jim Stansell
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 6376 as introduced Page 2 of 2Statutes affected:
House Introduced Bill: 205.92