Peer-to-Peer Car-Sharing Programs

On October 30, 2017, Governor Tom Wolf signed into law Act 43 of 2017 amending the Tax Reform Code to provide a prorated Public Transportation Assistance Fund fee for partial day car sharing services.

Effective January 1, 2023, in accordance with Act 53 of 2022, peer-to-peer car-sharing programs or car sharing by a shared vehicle owner is subject to state sales tax, local sales tax, and Public Transportation Assistance Fund fees.

What is Car Sharing?

Car sharing is a membership-based service that allows a person to rent a vehicle. Members can rent a vehicle by the minute, hour, or day or on a per trip basis.

Car sharing does not require trip-specific contracts or agreements, nor does it require you to walk into a retailer. The service is available to the consumer 24 hours a day, 7 days a week, 365 days per year.

The following are defined in Act 53 of 2022:

Car-sharing program agreement - The terms and conditions that govern the use of a shared vehicle through a peer-to-peer car-sharing program.

Peer-to-peer car sharing - The authorized use of a shared vehicle by an individual, other than the owner of the vehicle, through a peer-to-peer car-sharing program.

Peer-to-peer car-sharing payment - Full consideration paid or delivered, or promised to be paid or delivered, to the peer-to-peer car-sharing marketplace facilitator under a car-sharing program agreement, including charges for local sales or use tax, state sales or use tax and Public Transportation Assistance Fund fees.

Peer-to-peer car-sharing program - A business platform that, through a peer-to-peer car-sharing marketplace, connects shared vehicle owners with drivers to enable the sharing of vehicles for financial consideration.

Peer-to-peer car-sharing program marketplace - A forum on which a shared vehicle is listed or advertised for peer-to-peer car sharing.

Peer-to-peer car-sharing program marketplace facilitator - A person that facilitates peer-to-peer car sharing through a peer-to-peer car-sharing marketplace and either directly or indirectly, through agreements or arrangements with third parties, collects the peer-to-peer car- sharing payment from the purchaser and transmits the payment to the shared vehicle owner.

Shared vehicle - A vehicle that is available for sharing, including through a peer-to-peer car-sharing program.

Shared vehicle owner - The registered owner, or a person designated by the registered owner, of a vehicle made available for sharing, including through a peer-to-peer car-sharing program.

What is the Public Transportation Assisance Fund Car Sharing Fee Schedule?

How are the Taxes and Fees Reported and Remitted to the Department?

License

Any person making sales, rentals or leases subject to Public Transportation Assistance (PTA) taxes or fees are required to obtain a PTA Tax license from the Department of Revenue. To obtain a license, you must complete the Pennsylvania Online Business Tax Registration at myPATH.

Filing and Paying Taxes

PTA Fund taxes and fees are filed/ paid via myPATH, the department's online tax system for businesses, or by calling 1-800-748-8299. Paper tax returns are not available or permissible for this tax type.

Vehicle Rental Tax

Entities with five or more cars in their fleet will also be subject to collect and remit the 2% Vehicle Rental Tax. Vehicle Rental taxes and fees are paid via myPATH.

Shared vehicles that are rented through a peer-to-peer car sharing program are exempt from the Vehicle Rental tax.

Public Transportation Assistance Fund and Vehicle Rental Tax Quarterly Due Dates

If the due date falls on a weekend, the due date will be the next business day.

Longer Rental Periods 

If a vehicle is rented for fewer than 30 days (a rental contract) and subsequently the rental extends beyond 29 days, the transaction remains a rental, and continues to be subject to the $2 daily rental fee until the rental contract is terminated or the parties enter into a lease agreement.