(a) Businesses engaged in the rental of motor vehicles shall collect and remit a three percent (3%) surcharge or tax on charges for the retail rental of any private passenger motor vehicle or a vehicle with a maximum gross weight rating classification of Class Four (4) or under as defined by § 55-4-113 or trailers as defined in § 55-1-105 for periods of thirty-one (31) days or less when the vehicle is delivered to the renter in this state. The surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales taxes imposed by chapter 6 of this title. The surcharge or tax as applied in this subsection (a) does not apply to entities or shared vehicle owners engaged in peer-to-peer car sharing or to any gross proceeds from peer-to-peer car sharing.
Peer-to-peer car sharing: means the authorized use of a vehicle by an individual other than the vehicle's owner through a peer-to-peer car sharing program. See Tennessee Code 67-4-1901
Peer-to-peer car sharing program: means a business platform that connects motor vehicle owners with drivers to enable the sharing of motor vehicles for financial consideration. See Tennessee Code 67-4-1901
Sales: means all gross receipts of the taxpayer not allocated under this part. See Tennessee Code 67-4-2004
State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof. See Tennessee Code 67-4-2004
(b) Any charges related to the rental, including gas, insurance, and other related charges shall be included in the gross proceeds subject to the surcharge or tax, whether or not set out in a separate contract. The surcharge or tax shall not be included in the tax base for purposes of taxes imposed by chapter 6 of this title.(c) As used in this part:
(1) “Commissioner” means the commissioner of revenue;(2) “Peer-to-peer car sharing” means the authorized use of a vehicle by an individual other than the vehicle’s owner through a peer-to-peer car sharing program;(3) “Peer-to-peer car sharing program” means a business platform that connects motor vehicle owners with drivers to enable the sharing of motor vehicles for financial consideration; and(4) “Shared vehicle owner” has the same meaning as defined in § 55-12-301.(d) Notwithstanding Section 2 of chapter 325 of the Public Acts of 2001, on or after April 14, 2016, the department of revenue shall not be required to submit a report to the finance, ways and means committees of the house of representatives and the senate concerning the revenue effects of the amendments made to this section by chapter 325 of the Public Acts of 2001.
