Taxes

Peer-to-peer car sharing hosts aren’t rental car companies — and shouldn’t be taxed like one.

The rental car industry has been vocal in their demand that Turo and our customers pay taxes and fees as if we were a rental car company. Nothing could be further from the truth.

The rental car industry enjoys massive tax exemptions in many states where they pay no sales tax on the cars they purchase for their fleet. Turo hosts, contrastingly, pay sales taxes when they purchase their cars, which adds millions of dollars to their state’s economy.  

Many jurisdictions require collection and payment of taxes on the rental transaction from rental car companies because of the huge tax exemptions they enjoy on the purchase of the cars. Requiring Turo hosts to do the same amounts to paying two taxes when rental car companies pay one.

Take a look at what your state gives away to rental car companies every year here.

Turo is willing to engage in a forthright discussion about the appropriate method and rate of taxation on peer-to-peer car sharing transactions, but vigorously opposes any policies that force peer-to-peer car sharing to be defined the same as traditional car rental.