Arizona Lawmakers Debate Taxing, Regulating Peer-To-Peer Car Rentals

By Claire Caulfield
Howard Fischer, Capitol Media Services
Published: Friday, March 1, 2019 - 11:31am
Updated: Friday, March 1, 2019 - 11:32am

Arizona House lawmakers approved a measure that would allow individuals to rent out their own cars with minimal regulations. House Bill 2559 also excludes peer-to-peer car rentals from state and county taxes paid by traditional rental car companies.

Democratic Rep. César Chávez said he supports the bill because individuals already paid sales tax when they bought the car, which rental companies do not, and they also have to declare any income.

"In my district, this has provided an opportunity to these individuals to be able to share their car on a platform, either when they're at work or taking care of their families,” he said.

However, other lawmakers from both parties said apps that facilitate these peer-to-peer rentals should be treated like traditional rental companies.

The bill does impose some basic requirements on record keeping, insurance and safety standards. It also allows cities and towns to levy their own sales taxes on these transactions.

The bill still needs approval from the Arizona Senate and governor.