NetChoice opposes SB 595 because it imposes unfair double taxation on peer-to-peer car sharing participants, who already pay the Highway Use Tax and ad valorem tax on their personal vehicles but would now also face commercial rental car taxes on top of those existing obligations. The bill ultimately harms consumers, discourages participation in the sharing economy, and damages North Carolina’s reputation as a business-friendly state for innovators.
NetChoice Veto Request Letter for North Carolina SB 585
June 26, 2026
The Honorable Josh Stein
Governor, State of North Carolina
Office of the Governor
20301 Mail Service Center
Raleigh, NC 27699
Dear Governor Stein:
On behalf of NetChoice, a trade association of leading internet businesses that promotes free speech and free enterprise online, we respectfully urge you to veto Senate Bill 595. NetChoice has long championed the peer-to-peer economy as one of the most powerful forces for broadly shared prosperity in the digital age, enabling ordinary people to monetize their existing assets, access more affordable services, and participate in a marketplace that was once available only to large corporations.
P2P car-sharing platforms are a prime example: they give a vehicle owner in Asheville or Rocky Mount access to the same technology that Enterprise and Hertz use, turning a depreciating personal asset into a source of income and putting more transportation options in front of consumers. SB 595 would tax that opportunity out of reach. It imposes harmful new and duplicative taxes on P2P car sharing platforms and their users, undermining North Carolina’s commitment to a fair and business-friendly tax environment.
SB 595 Imposes Unlawful Double Taxation on North Carolina Consumers
Under current North Carolina law, personal vehicle owners already pay the Highway Use Tax (HUT) at the time of vehicle purchase and a 1.11% ad valorem tax on their vehicles. These taxes reflect the owner’s share of the costs associated with vehicle registration and road usage. SB 595 would impose the Alternative Highway Use Tax (AHUT)—a tax specifically designed for commercial rental car companies—on top of the taxes already paid by personal car owners who choose to share their vehicles through P2P platforms. This constitutes a clear and unfair double taxation.
Similarly, the bill would apply the city and county gross receipts tax (N.C.G.S. § 153A-156; N.C.G.S. § 160A-215.1) to P2P car sharing transactions, even though this tax was designed as a substitute for the ad valorem tax that rental car companies do not pay. Personal vehicle owners already pay the ad valorem tax on their vehicles. Imposing the gross receipts tax on top of the ad valorem tax means P2P participants will bear the burden of both levies—a burden commercial rental companies were specifically designed to avoid through the alternative tax structure.
SB 595 Creates an Unfair Tax Environment That Disadvantages Innovation
North Carolina’s existing tax framework reflects a deliberate policy balance between taxes on personal vehicle ownership and the alternative tax regime applicable to commercial rental car companies. That balance exists for sound reasons: rental car companies, as businesses that profit from every transaction, bear a different tax relationship to the state than private individuals who occasionally share their personal vehicles through digital platforms. SB 595 disrupts this balance by grafting the commercial tax regime onto individual P2P participants without removing the personal tax obligations those individuals already bear.
Moreover, the bill enables local jurisdictions to impose a Transit Authority Tax on P2P car sharing, further layering new costs onto North Carolina families and the platforms they use. These cumulative taxes will raise costs for consumers, deter participation in the sharing economy, and harm the small-business owners and individuals who rely on P2P platforms as a source of supplemental income.
SB 595 Undermines North Carolina’s Business-Friendly Reputation
North Carolina has worked hard to cultivate a reputation as one of the most business-friendly states in the nation. That reputation depends in part on maintaining a fair, predictable, and non-punitive tax environment for innovators and the consumers they serve. SB 595 signals to technology companies and platform operators that North Carolina is willing to single out innovative business models for discriminatory tax treatment. This sends exactly the wrong message at a time when states are competing vigorously for technology investment and talent.
The peer-to-peer economy empowers North Carolinians, offering individuals flexible income opportunities and providing consumers with affordable transportation alternatives. Imposing punishing double taxation on these participants does not reflect the values of innovation and economic freedom that North Carolina has championed.
For these reasons, NetChoice respectfully urges you to veto SB 595. We stand ready to work with your office and members of the General Assembly to develop tax policy that is fair, non-duplicative, and supportive of the innovative platforms that benefit North Carolina consumers and the broader economy.
Thank you for your consideration of our views.
Sincerely,
Amy Bos
Vice President of Government Affairs, NetChoice
NetChoice is a trade association that works to make the internet safe for free enterprise and free expression.