Maryland introduces taxation for the P2P carsharing
Carsharing, especially in the P2P format, is so tightly integrated into the life of the United States that local and central authorities are adopting special legislative acts that could legitimize activity and tax the relevant activity.
On July 1, 2018, Bill 743 of the Senate comes into force, which equates P2P to the classic car rental, obliging him to pay state taxes, compulsory insurance and observe the safety rules prescribed for companies.
The Bill 743 was initiated by the ACRA (American Car Rental Association). According to the amendments, P2P carsharing will be taxed 8% tax, and after 1 year, tax 11.5%. It is this tax that payed by all classic rental companies. But, car rental companies can save 3.5% of the tax, that is, actually paying only 8% of the tax. 3.5% can be saved by buying new cars and replacing the fleet.
Now, all P2P companies will be subject to the law and will be required to comply with the requirements as well as car rental companies:
- Pay airport fees if the car is issued or returned at the airport
- To insure the car and passengers regarding the safety of their life and health
- Observe the legislation on the recall of cars by manufacturers for traffic safety.
Against ACRA, the largest operator of P2P carsharing, Turo, which proves that it is not a service in fact, but only a platform on where meet owners of cars and those who want to rent it.
From the latest news: Illinois can also pass a law on the restriction of P2P of car sharing, similar to what is in Maryland.
