House Bill 517 Summary

• Creates Chapter 19 of Title 63, Idaho Code, establishing the "Motor Vehicle Rental Marketplaces Act" to regulate peer-to-peer vehicle rental platforms while limiting local government authority to prohibit or specifically target such private property uses except for public health and safety reasons.

• Defines key terms including "vehicle rental marketplace" (a platform connecting vehicle owners with drivers), "vehicle owner" (person offering rentals), "vehicle rental transaction" (charges for rental use), and "motor vehicle" (self-propelled vehicles meeting federal safety standards and recreational vehicles).

• Requires vehicle rental marketplaces to register with the state tax commission and collect, report, and pay all applicable state and local taxes on vehicle rental transactions facilitated through their platforms.

• Allows local governments to either contract with the state tax commission for tax collection and administration or collect taxes directly, with the state tax commission retaining administrative fees and remitting remaining revenues monthly to the levying local government.

• Provides a 45-day compliance period for vehicle rental marketplaces to register and begin tax collection and remittance obligations upon completing their first Idaho vehicle rental transaction.