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S.F. No. 133 - Exemption for Car Sharing Services of Motor Vehicle Rental/Lease Tax and Fee
 
Author: Senator D. Scott Dibble
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: February 14, 2017



 

This bill exempts vehicles owned by a car sharing service from the 5% motor vehicle rental/lease fee and from the 9.2% motor vehicle rental/lease tax. The fee and tax is imposed on rentals or leases for a period of not more than 28 days. Effective for leases or rentals entered into after June 30, 2017.  

Section

Provision

1

Strikes language that exempts vehicles owned by a nonprofit car sharing organization from the motor vehicle rental/lease fee. This language is no longer necessary given the new definition of “car sharing service” in section 2. Because car sharing service vehicles are exempt from the tax under section 2, current language provides that the fee does not apply to those vehicles.  
 

2

Provides an exemption from the motor vehicle rental/lease tax for vehicles used as part of a car sharing service. Defines “car sharing service” as an organization consisting of individual or group members who pay the organization for the use of a motor vehicle. The organization must:

  • Own or lease a fleet of vehicles that would otherwise be subject to the motor vehicle rental/lease tax that are available to members for use priced on the basis of one hour or less;
  • Park its vehicles at unstaffed, self-service locations accessible at any time; and
  • Maintain, insure, and purchase fuel for its fleet of vehicles.

 

 
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