Scott Powers
A bill that would require peer-to-peer car sharing marketing platforms to collect and pay sales taxes and rental surcharges, as well as clarify insurance requirements, cleared a committee Tuesday.
Republican Rep. Mike Caruso‘s HB 365 aims to bring the emerging peer-to-peer car sharing businesses such as Turo, GetAround, and Avail, into tax, insurance, and regulatory parity with traditional rental car companies like Enterprise, Avis, and Hertz.
“Today peer-to-peer car sharing companies take advantage of the tax laws of our counties, our state, and our country. They don’t collect sales tax. They don’t collect rental car daily surcharge. They don’t collect airport fees. They don’t even issue 1099s, most likely resulting in, God knows-dollars-worth of federal and state income taxes,” Caruso said.
The House Tourism, Infrastructure and Energy Subcommittee approved the measure by a 13-3 vote.
This is the third Session in which the Legislature has attempted to bring car sharing into the same unified regulatory framework previous Legislatures enacted for other so-called “disruptive business models,” such as ride-sharing platforms like Uber and Lyft. The Legislature also has been trying for many years to do the same with vacation rental home sharing platforms like Airbnb and HomeAway.
The bill would require peer-to-peer marketing companies to collect and remit sales taxes and rental car surcharges, ensure that there is minimum insurance coverage, and require standards of maintenance, safety, and record keeping for vehicles.
The peer-to-peer companies say they’re already collecting and remitting some of those taxes, and they already have insurance coverage. Still they know more unified reform is coming.
“All options are on the table. We’re open to anything,” said lobbyist James Daughton, representing Turo.
But there is a long and winding road ahead. Rental car companies already enjoy some tax breaks the car sharing companies want. Car sharing companies want the kinds of access to markets the rental car companies have. And increasingly, as the car sharing industry matures, the two types of car rental companies are starting to adopt each other’s ways of business.
So there are disputes over what is fair and equitable. Among them: if rental car companies don’t have to pay sales taxes on the cars they purchase, why should individual car owners, who have paid car sales taxes, have to pay sales taxes each time they rent out the vehicle? And who should be ensuring there’s enough car insurance — the car’s owner, the marketing platform, or the driver who rents the vehicle?
Representatives from Turo and Avail argued as if their clients essentially are ordinary people with a spare car in the garage that could be made available as a rental to produce some extra income. Yet there also are peer-to-peer vehicle owners who have amassed fleets of dozens of cars. Many airports are trying hard to shut out car sharing operations. In some airports, the marketing platforms rent out lots or garages near the airport to store them, and shuttle them to drivers getting off planes, just as a rental car company might. On the other hand, some rental car companies now are renting out their vehicles through peer-to-peer operations. So are some used car lots, the committee was told.
Issues raised Tuesday also ranged from the concept of vicarious liability to airport rules.
“I have represented people on both sides (of automobile accident cases) when it comes to insurance. And these rental car issues are always a nightmare, especially when there is not adequate coverage,” said Democratic Rep. Dottie Joseph, a North Miami lawyer. “My concern at the end of the day is always going to be the people of Florida. I am concerned that, ultimately, the Florida consumer, the regular Joes and Janes, are the ones who are going to pay the cost.”
And as a result, amendments are likely in the works.
“We are working on those issues as we speak,” Caruso said.
The bill heads next to the House Ways and Means Committee.
In the Senate, Republican Sen. Jeff Brandes of St. Petersburg is pushing a similar bill (SB 708).
