Arizona Senate Bill 1720, effective September 29, 2021, requires peer-to-peer car sharing platforms to pay transaction privilege tax on rentals conducted on their platforms. According to the Arizona Department of Revenue, peer-to-peer car sharing is “a privately-owned vehicle that 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.” To clarify, the platform owner is responsible for paying the tax, not the vehicle owners. Private vehicle owners do not need a TPT license. (Arizona Department of Revenue, Senate Bill 1720, effective September 29, 2021)