Illinois’ peer-to-peer (p2p) car rental market could soon be regulated and taxed like established car rental companies, the Illinois News Network reports.
Senate Bill 2641, which was passed in April, would require p2p car rental groups such as Turo and Getaround to abide by taxes and regulatory burdens included in the Automobile Renting Occupation and Use Tax Act. According to Illinois Policy, this includes a 5% tax from the state on the company and the individual renting.
Additionally, it would require p2p groups to pay county and city taxes, and obtain “certificates of registration.”
The American Car Rental Association’s Greg Scott told the Alton Daily News that the pending legislation “makes sense” and that p2p rentals should also pay airport fees and be subject to safety regulations.
However, Michelle Fang, general counsel for Turo, told the news source that the bill will suppress innovation and reduce competition.
The bill is still waiting on Governor Bruce Rauner’s signature.
Related: Maryland Passes Bill Regulating Peer-to-Peer Rentals
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