Peer-to-peer car sharing tax

What is the peer-to-peer car sharing tax?

It is a tax of 9.9% (.099) paid by the consumer on peer-to-peer car sharing transactions in Washington state when the vehicle was purchased using a reseller permit or other approved exemption certificate. The tax is in addition to the retail sales tax.

Who collects the tax?

The tax is collected by the peer-to-peer car sharing platform.

How do I know if I should collect the tax?

The platform must obtain a certification from every owner before they can list a vehicle on their platform.

How do I report the tax?

You report the tax to the department on your excise tax return under the Peer-To-Peer Car Sharing tax classification.

What is a peer-to-peer car sharing transaction?

Peer-to-peer car sharing means the authorized use of a vehicle by an individual other than the vehicle's owner through a peer-to-peer car sharing program. Peer-to-peer car sharing does not include:

• Retail car rental under chapter 82.08 RCW.
• Rental car as defined in RCW 46.04.465 and 48.115.005.

Peer-to-peer car sharing program means a business platform that connects vehicle owners with drivers to enable the sharing of vehicles for financial consideration. "Peer-to-peer car sharing program" does not include:

• Rental car company as defined in RCW 48.115.005.
• Rental car business as defined in RCW 46.04.466.