Regular Session 2021-2022 House Bill 2099 P.N. 2438

PRINTER'S NO. 2438

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2099

Session of

2021

INTRODUCED BY E. NELSON, BURGOS, ORTITAY, RADER, GUZMAN, RYAN,

KAIL, FEE, SANKEY AND FARRY, NOVEMBER 23, 2021

REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 23, 2021

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in sales and use tax, further providing for

definitions and for licenses; in vehicle rental tax, further

providing for vehicle rental tax; and, in public

transportation assistance fund, further providing for public

transportation assistance fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 201(n) and (p) of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are

amended, subsection (b)(3.5) is amended by adding a

subparagraph, subsections (i), (k) and (o) are amended by adding

paragraphs and the section is amended by adding subsections to

read:

Section 201. Definitions.--The following words, terms and

phrases when used in this Article II shall have the meaning

ascribed to them in this section, except where the context

clearly indicates a different meaning:

* * *

(b) "Maintaining a place of business in this Commonwealth."

* * *

(3.5) * * *

(iii) For a peer-to-peer car-sharing program marketplace

facilitator, this activity includes all sales, leases and

deliveries of tangible personal property and all sales of

services by the marketplace seller whose sales are facilitated

through the peer-to-peer car-sharing program marketplace

facilitator forum.

* * *

(i) "Resale."

* * *

(6) The term does not include the purchase price or repair

of a shared vehicle by a shared vehicle owner.

* * *

(k) "Sale at retail."

* * *

(20) Car sharing through a shared vehicle owner, peer-to-

peer car-sharing marketplace facilitator or rental company.

* * *

(n) "Taxpayer." Any person required to pay or collect the

tax imposed by this article, including a marketplace facilitator

[and], a marketplace seller, a peer-to-peer car-sharing program

marketplace facilitator and a shared vehicle owner.

(o) "Use."

* * *

(19) Car sharing through a shared vehicle owner, peer-to-

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peer car-sharing marketplace facilitator or rental company.

(p) "Vendor." Any person maintaining a place of business in

this Commonwealth, selling or leasing tangible personal

property, or rendering services, the sale or use of which is

subject to the tax imposed by this article, including a

marketplace facilitator [and a], marketplace seller, peer-to-

peer car-sharing program marketplace facilitator or shared

vehicle owner, but not including any employe who in the ordinary

scope of employment renders services to his employer in exchange

for wages and salaries.

* * *

(mmm) "Car-sharing program agreement." The terms and

conditions that govern the use of a shared vehicle through a

peer-to-peer car-sharing program.

(nnn) "Peer-to-peer car sharing." The authorized use of a

shared vehicle by an individual other than the owner of the

vehicle, through a peer-to-peer car-sharing program.

(ooo) "Peer-to-peer car-sharing payment." Full

consideration paid or delivered, or promised to be paid or

delivered, to the peer-to-peer car-sharing marketplace

facilitator under a car-sharing program agreement, excluding

charges for local sales or use tax, State sales or use tax,

vehicle rental tax or public transportation assistance fund

fees.

(ppp) "Peer-to-peer car-sharing program." A business

platform that, through a peer-to-peer car-sharing marketplace,

connects shared vehicle owners with drivers to enable the

sharing of vehicles for financial consideration.

(qqq) "Peer-to-peer car-sharing program marketplace." A

forum on which a shared vehicle is listed or advertised for

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peer-to-peer car sharing.

(rrr) "Peer-to-peer car-sharing program marketplace

facilitator." A person that facilitates peer-to-peer car

sharing through a peer-to-peer car-sharing marketplace and

either directly or indirectly, through agreements or

arrangements with third parties, collects the peer-to-peer car-

sharing payment from the purchaser and transmits the payment to

the shared vehicle owner.

(sss) "Shared vehicle." A vehicle that is available for

sharing, including through a peer-to-peer car-sharing program.

(ttt) "Shared vehicle owner." The registered owner, or a

person designated by the registered owner, of a vehicle made

available for sharing, including through a peer-to-peer car-

sharing program.

Section 2. Section 208(a) of the act is amended to read:

Section 208. Licenses.--(a) Every person maintaining a

place of business in this Commonwealth, with the exception of a

marketplace seller who makes no sales outside a forum for which

a marketplace facilitator is required to collect sales tax on

the seller's behalf and a shared vehicle owner who makes no

vehicle available for sharing outside a forum for which a peer-

to-peer car-sharing program marketplace facilitator is required

to collect sales tax on behalf of the shared vehicle owner,

selling or leasing services or tangible personal property, the

sale or use of which is subject to tax and who has not hitherto

obtained a license from the department, shall, prior to the

beginning of business thereafter, make application to the

department, on a form prescribed by the department, for a

license. If such person maintains more than one place of

business in this Commonwealth, the license shall be issued for

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the principal place of business in this Commonwealth.

* * *

Section 3. Section 1602-A(a) of the act is amended and the

section is amended by adding subsections to read:

Section 1602-A. Vehicle Rental Tax.--(a) Each vehicle

rental company and peer-to-peer car sharing program marketplace

facilitator shall collect, at the time the rental vehicle or

shared vehicle is rented or shared in this Commonwealth, on each

rental contract or car-sharing program agreement for a period of

twenty-nine or fewer consecutive days, a tax equal to two per

cent of the purchase price of the rental.

(b) This section shall not apply to peer-to-peer car-sharing

agreements that occur on a peer-to-peer car-sharing program when

a shared vehicle owner makes four or fewer shared vehicles

available on a peer-to-peer car-sharing program.

shall have the meanings given to them in this subsection unless

the context clearly indicates otherwise:

"Car-sharing program agreement." As defined in section

201(mmm).

"P eer-to-peer car-sharing program." As defined in section

201(ppp).

"P eer-to-peer car-sharing program marketplace facilitator."

As defined in section 201(rrr).

"Shared vehicle." As defined in section 201(sss).

"Shared vehicle owner." As defined in section 201(ttt).

Section 4. Section 2301(e) and (e.1) of the act are amended

to read:

Section 2301. Public Transportation Assistance Fund.--* * *

(e) Except as provided in subsection (e.1), there is hereby

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imposed on each rental of a motor vehicle and shared vehicle

subject to tax under Article II a fee of two dollars ($2) for

each day or part of a day for which the vehicle is rented.

(e.1) (1) There is hereby imposed on each rental of a motor

vehicle subject to tax under Article II and used in carsharing,

a peer-to-peer car-sharing program or car sharing by a shared

vehicle owner a fee for each day or part of a day computed

according to the following schedule:

Rental Interval Fee

Less than 2 hours $0.25

2 to 3 hours $0.50

More than 3, but less

than 4 hours $1.25

4 hours or more $2.00

(2) For purposes of this subsection, the term "carsharing"

shall mean a membership-based service that provides an

alternative to personal car ownership and which meets the

following conditions:

(i) Does not require a trip-specific written agreement each

time a member rents a vehicle.

(ii) Does not require an attendant to be present at the

beginning or end of a rental.

(iii) Offers members access to a dispersed network of shared

vehicles 24 hours per day, 7 days per week, 365 days per year.

(iv) Allows a vehicle to be rented on a per minute, per

hour, per day, or per trip basis, and at per mile or per

kilometer rates, which typically include fuel, insurance and

maintenance.

(3) For purposes of this subsection:

(i) The term "peer-to-peer car-sharing program" shall be as

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defined in section 201(ppp).

(ii) The term "shared vehicle" shall be as defined in

section 201(sss).

Section 5. This act shall take effect in 60 days.

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