SB265 Summary

• Establishes the Peer-to-Peer Car Sharing Program Act to regulate vehicle sharing platforms in Alabama with specific requirements for liability, insurance, and disclosure.

• Requires peer-to-peer car sharing programs to assume liability for bodily injury and property damage to third parties during car sharing periods at minimum levels required under Alabama law, with limited exceptions for fraud or intentional misrepresentation.

• Mandates that shared vehicle owners and drivers maintain motor vehicle liability insurance during each car sharing period with minimum coverage amounts of at least $25,000 bodily injury per person, with the peer-to-peer program, owner, or driver able to purchase the coverage.

• Requires peer-to-peer car sharing programs to collect and retain records of vehicle usage, pick-up/drop-off locations, fees, and revenues for at least the applicable statute of limitations period.

• Amends Section 40-12-222 to impose a 1.5% privilege/license tax on peer-to-peer car sharing programs, with a conditional 4% tax only for vehicles not subject to sales and use taxes upon purchase, and requires collection of local rental taxes; bill becomes effective October 1, 2025.