1.  Except as otherwise provided in subsection 2, a peer-to-peer car sharing program shall collect and remit, on behalf of any shared vehicle owner, sales and use taxes measured by the gross charges for the sharing of a vehicle that is placed on a digital network or software application of the peer-to-peer car sharing program on or after October 1, 2021, for the purpose of making the vehicle available for sharing through the peer-to-peer car sharing program if the shared vehicle owner has not paid any sales or use tax due or has elected to collect sales and use taxes measured by the gross charges for the sharing of the vehicle.

2.  The Department of Taxation shall not hold a peer-to-peer car sharing program liable for the payment, collection or remittance of sales and use taxes owed by a shared vehicle owner if:

(a) The peer-to-peer car sharing program provides proof satisfactory to the Department of Taxation that the peer-to-peer car sharing program has made a reasonable effort to obtain accurate information from the shared vehicle owner regarding whether the shared vehicle owner has paid the sales and use taxes due on a shared vehicle described in subsection 1; and

(b) The failure to collect and remit the sales and use taxes measured by the gross charges for the sharing of the vehicle through the peer-to-peer car sharing program was due to incorrect or false information provided to the peer-to-peer car sharing program by the shared vehicle owner.

3.  On or after October 1, 2021, a peer-to-peer car sharing program shall not allow a vehicle to be placed on a digital network or software application of the peer-to-peer car sharing program for the purpose of making the vehicle available for sharing through the peer-to-peer car sharing program unless the peer-to-peer car sharing program first requests an electronic certification from the shared vehicle owner as to whether the shared vehicle owner paid all sales and use taxes due on the purchase of the shared vehicle. The Department of Taxation may prescribe by regulation the method by which a peer-to-peer car sharing program shall obtain an electronic certification from the shared vehicle owner as to whether the shared vehicle owner paid all sales and use taxes due on the purchase of the shared vehicle.

4.  Nothing in this section shall be construed to relieve a peer-to-peer car sharing program of liability for collecting but failing to remit to the Department of Taxation any sales and use tax pursuant to this section. The Department of Taxation shall not require a peer-to-peer car sharing program to collect or remit sales and use taxes measured by the gross charges for the sharing of the vehicle if the full amount of sales and use taxes were paid on the purchase price of the shared vehicle by the shared vehicle owner.