SCS HB 90(TRA) - Vehicle Rental Modernization Act

• Establishes a 10 percent tax on passenger vehicle rentals from vehicle rental businesses and a 5 percent tax on rentals from vehicle rental individuals.

• Requires vehicle rental network companies (digital platforms connecting renters to personal vehicle owners) to collect and remit state taxes, or requires the vehicle provider to do so if not using a network.

• Allows municipalities to require vehicle rental network companies to collect and pay municipal sales taxes on behalf of vehicle rental businesses and individuals.

• Exempts persons who rent three or fewer vehicles in the state from the vehicle rental tax.

• Permits electronic delivery and acceptance of notices and disclosures by vehicle rental businesses and individuals, with acceptance valid until affirmatively withdrawn.

• Takes effect January 1, 2023.