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Peer-to-Peer Car Sharing Platforms Required to Pay Transaction Privilege Tax

October 14, 2021

Due to the passage of Senate Bill 1720 by the Arizona Legislature, peer-to-peer (P2P) car sharing businesses are now required to pay transaction privilege tax (TPT) on all rentals conducted through their platform. This legislation went into effect on September 29, 2021.

With “peer-to-peer car sharing,” a privately-owned vehicle is rented to another individual through a peer-to-peer business that provides a platform for others to rent vehicles for a fee. It does not include (1) car rental agents, (2) short-term car rentals as a business, or (3) vehicle rentals that include a driver. 

The P2P business platform owner is responsible to pay TPT, however, private vehicle owners do not need a TPT license or to pay TPT to offer their vehicles for rent through a P2P platform.

However, to avoid additional surcharges, private vehicle owners can certify to the Department that their vehicle is an individual-owned shared vehicle and that either:

  1. TPT or Arizona’s use tax was paid on the vehicle when it was purchased; or
  2. an out-of-state sales or use tax was paid on the vehicle if the vehicle was purchased out-of-state and subsequently brought into Arizona.


Application for certification may be made to the Department using A private vehicle owner may also represent to the P2P platform (through adequate documentation) that the vehicle is a certified individual-owned shared vehicle.

For more detailed information, please visit: tax/peer-peer-car-rental.



Thursday, October 14, 2021