MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Ways and Means
By: Representative Steverson
AN ACT TO CREATE THE PEER-TO-PEER CAR SHARING PROGRAM ACT; TO DEFINE TERMS FOR THE ACT; TO PROVIDE FOR THE PROGRAM LIABILITY FOR LOSS OR INJURY; TO PROVIDE FOR THE PROGRAM FINANCIAL RESPONSIBILITY REQUIREMENTS; TO PROVIDE FOR THE PROGRAM LIEN NOTIFICATION REQUIREMENTS; TO PROVIDE SHARED VEHICLE OWNER'S INSURER COVERAGE EXCLUSIONS; TO PROVIDE FOR THE PROGRAM RECORD-KEEPING REQUIREMENTS; TO PROVIDE THE SHARED VEHICLE OWNER OR DRIVER INSURER CLAIM CONTRIBUTION RIGHTS AGAINST THE PEER-TO-PEER CAR SHARING PROGRAM; TO PROVIDE FOR THE PEER-TO-PEER CAR SHARING PROGRAM INSURANCE RIGHTS IN SHARED VEHICLES; TO PROVIDE FOR EXEMPTION OF THE PEER-TO-PEER CAR SHARING PROGRAM AND SHARED VEHICLE OWNER FROM VICARIOUS LIABILITY; TO PROVIDE DISCLOSURE REQUIREMENTS OF THE CAR SHARING PROGRAM AGREEMENT TO SHARED VEHICLE OWNERS AND DRIVERS; TO PROVIDE PEER-TO-PEER CAR SHARING PROGRAM RESPONSIBILITY FOR EQUIPMENT PLACED IN SHARED VEHICLES; TO PROVIDE SAFETY RECALL NOTIFICATION REQUIREMENTS; TO AMEND SECTION 63-1-67, MISSISSIPPI CODE OF 1972, TO PROVIDE DRIVER LICENSING REQUIREMENTS OF PEER-TO-PEER VEHICLES; TO AUTHORIZE ELECTRONIC NOTICES AND DISCLOSURES BY MOTOR VEHICLE RENTAL COMPANIES OR PEER-TO-PEER CAR SHARING PROGRAMS; TO AMEND SECTION 27-65-231, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE PEER-TO-PEER CAR SHARING PROGRAM IS SUBJECT TO ADDITIONAL TAX ON SHORT-TERM RENTALS; TO AMEND SECTION 27-65-23, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE PEER-TO-PEER CAR SHARING PROGRAM IS SUBJECT TO MISSISSIPPI SALES TAX; TO AMEND SECTION 27-65-7, MISSISSIPPI CODE OF 1972, TO INCLUDE THE PEER-TO-PEER CAR SHARING PROGRAM IN THE DEFINITION OF "RETAILER," AND THE RENTAL OF VEHICLES THROUGH A PEER-TO-PEER CAR SHARING PROGRAM IN THE DEFINITION OF "RETAIL SALE," FOR THE PURPOSE OF MISSISSIPPI SALES TAX LAW; TO AMEND SECTION 27-65-9, MISSISSIPPI CODE OF 1972, TO INCLUDE ANY PERSON OPERATING A PEER-TO-PEER CAR SHARING PROGRAM OFFERING SHARED VEHICLES WITHIN THIS STATE IN THE DEFINITION OF "DOING BUSINESS" FOR THE PURPOSE OF MISSISSIPPI SALES TAX LAW; TO AMEND SECTION 61-3-21, MISSISSIPPI CODE OF 1972, TO PROVIDE CERTAIN REQUIREMENTS FOR PEER-TO-PEER CAR SHARING PROGRAMS REGARDING AIRPORT AUTHORITY USAGE AGREEMENTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Short title. This act shall be known and may be cited as the "Peer-to-Peer Car Sharing Program Act."
SECTION 2. Definitions. The following terms shall have the meaning ascribed in this section, unless the context of use clearly requires otherwise:
(a) "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 mean rental car or rental activity.
(b) "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 mean rental car company.
(c) "Car sharing program agreement" means the terms and conditions applicable to a shared vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-to-peer car sharing program. "Car sharing program agreement" does not mean rental car agreement.
(d) "Shared vehicle" means a vehicle that is available for sharing through a peer-to-peer car sharing program. "Shared vehicle" does not mean rental car or rental vehicle.
(e) "Shared vehicle driver" means an individual who has been authorized to drive the shared vehicle by the shared vehicle owner under a car sharing program agreement.
(f) "Shared vehicle owner" means the registered owner, or a person or entity designated by the registered owner, of a vehicle made available for sharing to shared vehicle drivers through a peer-to-peer car sharing program.
(g) "Car sharing delivery period" means the period of time during which a shared vehicle is being delivered to the location of the car sharing start time, if applicable, as documented by the governing car sharing program agreement.
(h) "Car sharing period" means the period of time that commences with the car sharing delivery period or, if there is no car sharing delivery period, that commences with the car sharing start time and in either case ends at the car sharing termination time.
(i) "Car sharing start time" means the time when the shared vehicle becomes subject to the control of the shared vehicle driver at or after the time the reservation of a shared vehicle is scheduled to begin as documented in the records of a peer-to-peer car sharing program.
(j) "Car sharing termination time" means the earliest of the following events:
(i) The expiration of the agreed upon period of time established for the use of a shared vehicle according to the terms of the car sharing program agreement if the shared vehicle is delivered to the location agreed upon in the car sharing program agreement;
(ii) When the shared vehicle is returned to a location as alternatively agreed upon by the shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car sharing program; or
(iii) When the shared vehicle owner or the shared vehicle owner's authorized designee takes possession and control of the shared vehicle.
If a dispute arises as to whether the car sharing termination time has transpired, or if a car return calls into question whether the car sharing termination time has occurred, the peer-to-peer car sharing program shall extend primary coverage for the loss. If during the investigation of the claim it becomes apparent that one (1) of the parties to the car sharing program agreement was negligent, engaged in misrepresentation, or is otherwise responsible for the loss, the car sharing program shall recover from one (1) or both parties directly through subrogation.
SECTION 3. Insurance coverage during car sharing period. (1) A peer-to-peer car sharing program shall assume primary liability, except as provided in subsection (2) of this section, of a shared vehicle owner for bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the car sharing period in an amount stated in the peer-to-peer car sharing program agreement which amount may not be less than those set forth in Section 63-15-3(j).
(2) Notwithstanding the definition of "car sharing termination time" as set forth in Section 2(j) of this act, the assumption of liability under subsection (1) of this section does not apply to any shared vehicle owner when:
(a) A shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the peer-to-peer car sharing program before the car sharing period in which the loss occurred, or
(b) Acting in concert with a shared vehicle driver who fails to return the shared vehicle pursuant to the terms of car sharing program agreement.
(3) Notwithstanding the definition of "car sharing termination time" as set forth in Section 2(j) of this act, the assumption of liability under subsection (1) of this section would apply to bodily injury, property damage, uninsured and underinsured motorist or personal injury protection losses by damaged third parties required under Section 63-15-3(j).
(4) A peer-to-peer car sharing program shall ensure that, during each car sharing period, the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that provides insurance coverage in amounts no less than the minimum amounts set forth in Section 63-15-3(j), and:
(a) Recognizes that the shared vehicle insured under the policy is made available and used through a peer-to-peer car sharing program; or
(b) Does not exclude use of a shared vehicle by a shared vehicle driver.
(5) The insurance described under subsection (4) may be satisfied by motor vehicle liability insurance maintained by:
(a) A shared vehicle owner;
(b) A shared vehicle driver;
(c) A peer-to-peer car sharing program; or
(d) Both a shared vehicle owner, a shared vehicle driver, and a peer-to-peer car sharing program.
(6) The insurance described in subsection (5) that is satisfying the insurance requirement of subsection (4) shall be primary during each car sharing period, and in the event that a claim occurs in another state with minimum state financial responsibility limits higher than those set forth in Section 63-15-3(j), during the car sharing period, the peer-to-peer car sharing program shall satisfy the difference in minimum coverage amounts.
(7) The peer-to-peer car sharing program shall assume primary liability for a claim when it is in whole or in part providing the insurance required under subsections (4) and (5) and:
(a) A dispute exists as to who was in control of the shared motor vehicle at the time of the loss; and
(b) The peer-to-peer car sharing program does not have available, did not retain, or fails to provide the information required by Section 6 of this act.
The shared motor vehicle's insurer shall indemnify the car sharing program to the extent of its obligation under, if any, the applicable insurance policy, if it is determined that the shared motor vehicle's owner was in control of the shared motor vehicle at the time of the loss.
(8) If insurance maintained by a shared vehicle owner or shared vehicle driver in accordance with subsection (5) has lapsed or does not provide the required coverage, insurance maintained by a peer-to-peer car sharing program shall provide the coverage required by subsection (4) beginning with the first dollar of a claim and have the duty to defend such claim except under circumstances as set forth in subsection (2).
(9) Coverage under an automobile insurance policy maintained by the peer-to-peer car sharing program shall not be dependent on another automobile insurer first denying a claim nor shall another automobile insurance policy be required to first deny a claim.
(10) Nothing in this act:
(a) Limits the liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program itself that results in injury to any person as a result of the use of a shared vehicle through a peer-to-peer car sharing program; or
(b) Limits the ability of the peer-to-peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement.
SECTION 4. Notification of implications of lien. At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a shared vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall notify the shared vehicle owner that, if the shared vehicle has a lien against it, the use of the shared vehicle through a peer-to-peer car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.
SECTION 5. Exclusions in motor vehicle liability insurance policies. (1) An authorized insurer that writes motor vehicle liability insurance in this state may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner's motor vehicle liability insurance policy, including, but not limited to:
(a) Liability coverage for bodily injury and property damage;
(b) Personal injury protection coverage;
(c) Uninsured and underinsured motorist coverage;
(d) Medical payments coverage;
(e) Comprehensive physical damage coverage; and
(f) Collision physical damage coverage.
(2) Nothing in this act invalidates or limits an exclusion contained in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use that excludes coverage for motor vehicles made available for rent, sharing, or hire or for any business use.
(3) Nothing in this act invalidates, limits, or restricts an insurer's ability under existing law to underwrite any insurance policy. Nothing in this act invalidates, limits, or restricts an insurer's ability under existing law to cancel and nonrenew policies, including for participation in a peer-to-peer car sharing program.
SECTION 6. Recordkeeping; use of vehicle in car sharing. A peer-to-peer car sharing program shall collect and verify records pertaining to the use of a vehicle, including, but not limited to, times used, fees paid by the shared vehicle driver, and revenues received by the shared vehicle owner and provide that information upon request to the shared vehicle owner, the shared vehicle owner's insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation, settlement, negotiation, or litigation. The peer-to-peer car sharing program shall retain the records for a time period not less than three (3) years.
SECTION 7. Exemptions; vicarious liability. A peer-to-peer car sharing program and a shared vehicle owner shall be exempt from vicarious liability in accordance with 49 USC Section 30106 and under any state or local law that imposes liability solely based on vehicle ownership.
SECTION 8. Contribution against indemnity. A motor vehicle insurer that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of its policy shall have the right to seek contribution against the motor vehicle insurer of the peer-to-peer car sharing program if the claim is:
(a) Made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period; and
(b) Excluded under the terms of its policy.
SECTION 9. Insurable interest. (1) Notwithstanding any other law, statute, rule or regulation to the contrary, a peer-to-peer car sharing program shall have an insurable interest in a shared vehicle during the car sharing period.
(2) Nothing in this section creates liability on a peer-to-peer car sharing program to maintain the coverage mandated by Section 3 of this act.
(3) A peer-to-peer car sharing program may own and maintain as the named insured one or more policies of motor vehicle liability insurance that provides coverage for:
(a) Liabilities assumed by a peer-to-peer car sharing program under a peer-to-peer car sharing program agreement;
(b) Any liability of the shared vehicle owner;
(c) Damage or loss to the shared motor vehicle; or
(d) Any liability of the shared vehicle driver.
SECTION 10. Consumer protection disclosures. Each car sharing program agreement made in the state shall disclose to the shared vehicle owner and the shared vehicle driver:
(a) Any right of the peer-to-peer car sharing program to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement;
(b) That a motor vehicle liability insurance policy issued to the shared vehicle owner for the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer-to-peer car sharing program;
(c) That the peer-to-peer car sharing program's insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner may not have insurance coverage;
(d) The daily rate, fees, and if applicable, any insurance or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver;
(e) That the shared vehicle owner's motor vehicle liability insurance may not provide coverage for a shared vehicle;
(f) An emergency telephone number to personnel capable of fielding roadside assistance and other customer service inquiries; and
(g) If there are conditions under which a shared vehicle driver must maintain a personal automobile insurance policy with certain applicable coverage limits on a primary basis in order to book a shared motor vehicle.
SECTION 11. Driver's license verification and data retention. (1) A peer-to-peer car sharing program may not enter into a peer-to-peer car sharing program agreement with a driver unless the driver who will operate the shared vehicle:
(a) Holds a driver's license issued under the laws of the State of Mississippi that authorizes the driver to operate vehicles of the class of the shared vehicle; or
(b) Is a nonresident who:
(i) Has a driver's license issued by the state or country of the driver's residence that authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle; and
(ii) Is at least the same age as that required of a resident to drive; or
(c) Otherwise is specifically authorized by Mississippi state law to drive vehicles of the class of the shared vehicle.
(2) A peer-to-peer car sharing program shall keep a record of:
(a) The name and address of the shared vehicle driver;
(b) The number of the driver's license of the shared vehicle driver and each other person, if any, who will operate the shared vehicle; and
(c) The place of issuance of the driver's license.
SECTION 12. Responsibility for equipment. A peer-to-peer car sharing program shall have sole responsibility for any equipment, such as a GPS system or other special equipment that is put in or on the vehicle to monitor or facilitate the car sharing transaction, and shall agree to indemnify and hold harmless the vehicle owner for any damage to or theft of such equipment during the sharing period not caused by the vehicle owner. The peer-to-peer car sharing program has the right to seek indemnity from the shared vehicle driver for any loss or damage to such equipment that occurs during the sharing period.
SECTION 13. Automobile safety recalls. (1) At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a shared vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall:
(a) Verify that the shared vehicle does not have any safety recalls on the vehicle for which the repairs have not been made; and
(b) Notify the shared vehicle owner of the requirements under subsection (2) of this section.
(2) (a) If the shared vehicle owner has received an actual notice of a safety recall on the vehicle, a shared vehicle owner may not make a vehicle available as a shared vehicle on a peer-to-peer car sharing program until the safety recall repair has been made.
(b) If a shared vehicle owner receives an actual notice of a safety recall on a shared vehicle while the shared vehicle is made available on the peer-to-peer car sharing program, the shared vehicle owner shall remove the shared vehicle as available on the peer-to-peer car sharing program, as soon as practicably possible after receiving the notice of the safety recall and until the safety recall repair has been made.
(c) If a shared vehicle owner receives an actual notice of a safety recall while the shared vehicle is being used in the possession of a shared vehicle driver, as soon as practicably possible after receiving the notice of the safety recall, the shared vehicle owner shall notify the peer-to-peer car sharing program about the safety recall so that the shared vehicle owner may address the safety recall repair.
SECTION 14. Section 63-1-67, Mississippi Code of 1972, is amended as follows:
63-1-67. (1) No person shall rent a motor vehicle to or share a shared vehicle, as defined in Section 2(d) of this act, with any other person unless the latter person is then duly licensed under the provisions of this article, or, in the case of a nonresident, then duly licensed under the laws of the state or country of his residence except a nonresident whose home state or country does not require that an operator be licensed.
(2) No person shall rent a motor vehicle to or share a shared vehicle with another until he has inspected the license of the person to whom the vehicle is to be rented and compared and verified the signature thereon with the signature of such person written in his presence.
(3) Notwithstanding subsections (1) and (2) of this section, if a motor vehicle rental company or peer-to-peer car sharing program, as defined in Section 2(b) of this act, facilitates rental or sharing via digital, electronic or other means that allow customers to obtain possession of a vehicle without in person contact with an agent or employee of the motor vehicle rental company or peer-to-peer car sharing program, or where the customer does not execute a contract or car sharing program agreement, as defined in Section 2(c) of this act, at the time of the transactions, the motor vehicle rental company or peer-to-peer car sharing program shall be deemed to have met all obligations to physically inspect and verify the customer's driver's license when such provider:
(a) At the time the customer enrolls, or any time thereafter, in a membership program, master agreement, or other means of establishing use of the provider's services, requires verification that the customer is a licensed driver; or
(b) Prior to the customer taking possession of the vehicle, the provider requires documentation that verifies the customer's identity and that the customer is a licensed driver.
( * * *4) Every person renting a motor
vehicle to another shall keep a record of the registration number of the motor
vehicle so rented, the name and address of the person to whom the vehicle is
rented, the number of the license of said latter person and the date and place
when and where said license was issued. Such record shall be open to
inspection by any police officer or officers or employee of the commissioner.
SECTION 15. Section 27-65-231, Mississippi Code of 1972, is amended as follows:
27-65-231. (1) In addition to the sales tax imposed in Section 27-65-23, Mississippi Code of 1972, there is hereby levied upon every person engaging or continuing in this state in the business of renting motor vehicles under rental agreements with a term of not more than thirty (30) continuous days each, a tax at the rate of six percent (6%) of the gross proceeds of such business derived from the rental of motor vehicles, except that motor vehicles with a gross vehicle weight exceeding ten thousand (10,000) pounds shall be excluded from the measure of this tax.
(2) In addition to the sales tax imposed in Section 27-65-23, there is hereby levied upon every peer-to-peer car sharing program, as defined in Section 2(b) of this act, a tax at the rate of six percent (6%) of the gross proceeds of such business derived from the sharing of shared vehicles, as defined in Section 2(c) of this act, for terms of thirty (30) days or less, except that motor vehicles with a gross vehicle weight exceeding ten thousand (10,000) pounds shall be excluded from the measure of this tax.
( * * *3) All administrative provisions of
the Mississippi Sales Tax Law, including those which fix damages, penalties and
interest for nonpayment of taxes, failure to file returns, and for other
noncompliance with the provisions of said chapter, and all other requirements
and duties imposed upon taxpayers, shall apply to all persons liable for taxes
under the provisions of this section, and the commission shall exercise all the
power and authority and perform all the duties with respect to taxpayers under
this section as are provided in said Sales Tax Law, except that in cases of
conflict, then the provisions of this section shall control.
( * * *4) On or before February 15 of each
year, the proceeds of the tax imposed by this section on business rental
activities shall be paid by the State Tax Commission to the county in which
such proceeds were collected. Within seven (7) days after receipt of the tax
proceeds, the county shall apportion and pay such tax proceeds as follows: The
situs of the rental transactions from which tax proceeds were derived shall
first be determined, and then the tax proceeds collected at a situs shall be
distributed among the county, municipality and school district of the situs, as
appropriate, in the same proportion and in the same manner that motor vehicle
ad valorem taxes would be distributed among such taxing districts (based on
their respective millage rates) if collected at the same time as the receipt of
such proceeds and paid by a motor vehicle owner located at the same address as
the situs of the rental transaction.
( * * *5) The governing authorities of the
counties, municipalities and school districts may expend the proceeds of such
tax for any lawful purposes.
( * * *6) The revenues received by counties
and municipalities under subsection ( * * *4) of this section shall be deposited
in the general fund of the counties and municipalities, and the revenues
received by the school districts shall be deposited in any fund designated by
the school district.
( * * *7) The revenues received by counties,
municipalities and school districts under subsection ( * * *4) of this section shall be included
and considered as proceeds of ad valorem taxes for the purposes of the growth
limitation on ad valorem taxes under Sections 27-39-321 and 27-39-305.
( * * *8) The tax authorized herein shall be
in addition to any other tax authorized by law to be levied on the business
activities described in this section.
SECTION 16. Section 27-65-23, Mississippi Code of 1972, is amended as follows:
27-65-23. Upon every person engaging or continuing in any of the following businesses or activities there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business, except as otherwise provided:
Air-conditioning installation or repairs;
Automobile, motorcycle, boat or any other vehicle repairing or servicing;
Billiards, pool or domino parlors;
Bowling or tenpin alleys;
Burglar and fire alarm systems or services;
Car washing — automatic, self-service, or manual;
Computer software sales and services;
Cotton compresses or cotton warehouses;
Custom creosoting or treating, custom planing, custom sawing;
Custom meat processing;
Electricians, electrical work, wiring, all repairs or installation of electrical equipment;
Elevator or escalator installing, repairing or servicing;
Film developing or photo finishing;
Foundries, machine or general repairing;
Furniture repairing or upholstering;
Grading, excavating, ditching, dredging or landscaping;
Hotels (as defined in Section 41-49-3), motels, tourist courts or camps, trailer parks;
Insulating services or repairs;
Jewelry or watch repairing;
Laundering, cleaning, pressing or dyeing;
Marina services;
Mattress renovating;
Office and business machine repairing;
Operating a peer-to-peer car sharing program, as defined in Section 2(b) of this act, offering shared vehicles, as defined in Section 2(d) of this act, for use within this state;
Parking garages and lots;
Plumbing or pipe fitting;
Public storage warehouses (There shall be no tax levied on gross income of a public storage warehouse derived from the temporary storage of tangible personal property in this state pending shipping or mailing of the property to another state.);
Refrigerating equipment repairs;
Radio or television installing, repairing, or servicing;
Renting or leasing personal property used within this state;
Services performed in connection with geophysical surveying, exploring, developing, drilling, producing, distributing, or testing of oil, gas, water and other mineral resources;
Shoe repairing;
Storage lockers;
Telephone answering or paging services;
Termite or pest control services;
Tin and sheet metal shops;
TV cable systems, subscription TV services, and other similar activities;
Vulcanizing, repairing or recapping of tires or tubes;
Welding; and
Woodworking or wood-turning shops.
Income from services taxed herein performed for electric power associations in the ordinary and necessary operation of their generating or distribution systems shall be taxed at the rate of one percent (1%).
Income from services taxed herein performed on materials for use in track or track structures to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission shall be taxed at the rate of three percent (3%).
Income from peer-to-peer car sharing, or renting or leasing tangible personal property used within this state shall be taxed at the same rates as sales of the same property.
Persons doing business in this state who rent transportation equipment with a situs within or without the state to common, contract or private commercial carriers are taxed on that part of the income derived from use within this state. If specific accounting is impracticable, a formula may be used with approval of the commissioner.
A lessor may deduct from the tax computed on the rental income from tangible personal property a credit for sales or use tax paid to this state at the time of purchase of the specific personal property being leased or rented until such credit has been exhausted.
Charges for custom processing and repairing services may be excluded from gross taxable income when the property on which the service was performed is delivered to the customer in another state either by common carrier or in the seller's equipment.
When a taxpayer performs unitary services covered by this section, which are performed both in intrastate and interstate commerce, the commissioner is hereby invested with authority to formulate in each particular case and to fix for such taxpayer in each instance formulae of apportionment which will apportion to this state, for taxation, that portion of the services which are performed within the State of Mississippi.
SECTION 17. Section 27-65-7, Mississippi Code of 1972, is amended as follows:
27-65-7. "Retailer" shall apply to a person making retail sales through vending machines, by maintaining a store, or operating as a transient vendor, or renting or leasing tangible personal property. Retailer also includes persons who facilitate the sale of services or tangible personal property that belongs to a third party, including operating a peer-to-peer car sharing program, as defined in Section 2(b) of this act.
"Retail sales" shall mean and include all sales of tangible personal property except those defined herein as wholesale and those made to a wholesaler, jobber, manufacturer or custom processor for resale or for further processing.
"Retail sale" shall include the value of any tangible personal property manufactured or purchased at wholesale which is withdrawn from the business or stock in trade and is used or consumed within this state in the business or by the owner or by any other person, whether or not in the regular course of business or trade.
"Retail sale" shall also include a sale invoiced to a retailer but delivered to another person who pays for the merchandise upon taking possession.
"Retail sale" shall also include a sale made or facilitated by a person regularly engaged in the sale or facilitation of sales of services or tangible personal property, including the rental of vehicles through a peer-to-peer car sharing program, as defined in Section 2(b) of this act. "Retail sale" does not include a sale by a third-party food delivery service that delivers food from an unrelated restaurant to a customer, regardless of whether the customer orders and pays for the food through the delivery service or whether the delivery service adds fees or upcharges to the price of the food.
SECTION 18. Section 27-65-9, Mississippi Code of 1972, is amended as follows:
27-65-9. (1) "Business" shall mean and include all activities or acts engaged in (personal or corporate), for benefit or advantage, either direct or indirect, and not exempting subactivities in connection therewith. Each of such subactivities shall be considered business engaged in, taxable in the class in which it falls.
(2) "Business" shall include activities engaged in by exempt organizations or political entities in competition with privately owned business subject to the provisions of this chapter; however, the term "business" shall not include the following activities:
(a) Sales of prepaid student meal plans by public or private universities, colleges and community or junior colleges;
(b) Sales of prepared meals by any public or private school to students in kindergarten through Grade 12; and
(c) Retail sales of prepared meals when:
(i) Sold on the campus of a public or private university, college or community or junior college in this state to a student enrolled at such university, college or community or junior college; and
(ii) Payment for the sale is made through the use of a prepaid declining balance account or similar instrument or account issued to such student by the university, college or community or junior college that may be used only to purchase prepared meals.
(3) "Business" shall include the activity or activities of a person in this state performing a service under contract or agreement with another person when the service performed is taxable under the provisions of this chapter.
(4) "Doing business" shall include any person owning personal property located in this state under lease or rental agreement or any person installing personal property within this state.
(5) "Doing business" shall include any person represented in this state by salesmen taking or soliciting orders to be filled from points outside this state for subsequent delivery of the merchandise in equipment owned or leased by the seller to customers located in this state.
(6) "Doing business" shall include any person selling or facilitating the sale of services or tangible personal property, including any person operating a peer-to-peer car sharing program, as defined in Section 2(b) of this act, offering shared vehicles, as defined in Section 2(c) of this act, for use within this state.
SECTION 19. Section 61-3-21, Mississippi Code of 1972, is amended as follows:
61-3-21. (1) In connection with the operation of an airport or air navigation facility owned or controlled by an authority, the authority may enter into contracts, leases and other arrangements for terms not to exceed fifty (50) years with any persons:
(a) Granting the privilege of using or improving the airport or air navigation facility or any portion or facility thereof or space therein for commercial purposes;
(b) Conferring the privilege of supplying goods, commodities, things, services or facilities at the airport or air navigation facility; and
(c) Making available services to be furnished by the authority or its agents at the airport or air navigation facility.
(2) A motor vehicle rental company, peer-to-peer car sharing program, as defined in Section 2(b) of this act, or shared vehicle owner, as defined in Section 2(f) of this act, may not, prior to entering into an agreement specified in subsection (1) of this section:
(a) List, publish or advertise motor vehicles parked on airport property or at airport facilities;
(b) Facilitate the use of vehicles to transport airport customers to or from airport property or airport facilities, regardless of whether that use is to be initiated or has a start time, as defined in Section 2(i) of this act, which occurs on or off airport property or airport facilities; or
(c) Promote or market vehicles to transport airport customers to or from airport property or airport facilities, regardless of whether that transportation is to be initiated or has a start time, as defined in Section 2(i) of this act, which occurs on or off airport property or airport facilities.
(3) An authority shall
be entitled to seek injunctive relief and damages for violations of subsection
(2) of this section. In each case the authority may establish the terms
and conditions and fix the charges, rentals or fees for the privileges or
services, which shall be reasonable and uniform for the same class of privilege
or service * * *. In no case shall the
public be deprived of its rightful, equal and uniform use of the airport, air
navigation facility or portion or facility thereof.
( * * *4) Except as may be limited by the
terms and conditions of any grant, loan or agreement authorized by Section 61-3-25,
Mississippi Code of 1972, an authority may, by contract, lease or other
arrangements, upon a consideration fixed by it, grant to any qualified person
for a term not to exceed fifty (50) years, the privilege of operating, as agent
of the authority or otherwise, any airport owned or controlled by the
authority. However, no person shall be granted any authority to operate an
airport other than as a public airport or to enter into any contracts, leases
or other arrangements in connection with the operation of the airport which the
authority might not have undertaken under subsection (1) of this section.
( * * *5) All airport-related contracts,
leases and other arrangements entered into pursuant to this section are deemed
to serve a public and governmental purpose as a matter of public necessity;
therefore, all airport-related contracts, leases, and other arrangements and
all structures, improvements and other facilities erected, installed,
constructed or located in connection therewith on an airport or air navigation
facility owned or controlled by an authority, or any portion of facility
thereof or space therein, shall be free and exempt from all state, county and
municipal ad valorem taxes on real property and personal property for so long
as may otherwise be lawful, and the charges, rentals and fees received by an
authority in connection with airport-related contracts, leases and other
arrangements shall be deemed to be in lieu of said taxes.
SECTION 20. Nothing in this act shall expand or restrict in any manner the respective rights, obligations and limitations of motor vehicle manufacturers and licensed motor vehicle dealers as set forth in Sections 63-17-51 through 63-17-119, which is cited as the "Mississippi Motor Vehicle Commission Law."
SECTION 21. This act shall take effect and be in force from and after January 1, 2022.