Texas creates a great peer-to-peer car sharing law
Pablo Benavente in Austin, TX
A massive victory in the Lone Star State! HB 113, sponsored by Rep. Oliverson passed the legislature and was signed into law by Governor Abbott on June 9, 2021. This bill defines peer-to-peer car sharing hosts as separate and distinct from car rental companies and sets forth the appropriate regulations surrounding insurance and consumer protections for the peer-to-peer car sharing industry.
HB 113 wasn’t the only victory for peer-to-peer car sharing, our community helped stop HB 2415, a bill that would have misclassified and taxed peer-to-peer car sharing hosts just like car rental companies. HB 2415 attempted to apply all the burdens of the car rental industry but none of the luxuries – like the massive tax exemption rental car companies get when they purchase their fleets of cars. In Texas alone, car rental companies avoid paying $351.4 million of sales tax each year through this exemption - our hosts do not enjoy this handout. When Texans purchase a vehicle, they pay a hefty tax to the state - traditional rental car companies avoid this entirely. Thanks to the efforts of our community members and Turo advocates, the legislature did not move this initiative forward, opting for HB 113 as the sensible move for Texans.
The fight is not over, as we anticipate more attacks from big rental in the future but for now, let’s celebrate these two HUGE wins! Thank you to the Turo community and the legislators in Texas who took a stand for peer-to-peer car sharing.