HB0123a -1- HB 123
New Text Underlined [DELETED TEXT BRACKETED]
34-LS0551\I
HOUSE BILL NO. 123
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY REPRESENTATIVE MCCABE
Introduced: 3/5/25
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to vehicle rental taxes; relating to the issuance of subpoenas related to 1
tax records; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 43.05.040(c) is amended to read: 4
(c) If a person who is subpoenaed neglects or refuses to obey the subpoena 5
issued as provided in this section, the department may report the fact to the superior 6
court [OR THE APPROPRIATE COURT OF ANOTHER JURISDICTION], and m ay 7
seek an order from the court compelling obedience to the subpoena. The court, to the 8
maximum extent permitted by law, may compel obedience to the subpoena [TO THE 9
SAME EXTENT AS WITNESSES MAY BE COMPELLED TO OBEY THE 10
SUBPOENAS OF THE COURT]. 11
* Sec. 2. AS 43.52.020 is amended to read: 12
Sec. 43.52.020. Rate of passenger vehicle rental tax. The rate of the tax 13
levied in AS 43.52.010 is 14 34-LS0551\I
HB 123 -2- HB0123a
New Text Underlined [DELETED TEXT BRACKETED]
(1) nine [10] percent of the total fees and costs charged for the lease or 1
rental of a [THE] passenger vehicle not arranged through a vehicle rental 2
platform; or 3
(2) seven percent of the total fees and costs charged for the lease or 4
rental of a passenger vehicle through a vehicle rental platform. 5
* Sec. 3. AS 43.52.050(a) is amended to read: 6
(a) The taxes imposed by AS 43.52.010 - 43.52.099 shall be collected and 7
paid to the department 8
(1) by the person who provides the leased or rented vehicle unless the 9
lease or rental was arranged or executed through a vehicle rental platform under 10
(c) of this section; and 11
(2) in the manner and at the times required by the department by 12
regulation except that a vehicle rental platform collecting and paying the tax 13
under (c) of this section shall pay the tax quarterly. 14
* Sec. 4. AS 43.52.050 is amended by adding new subsections to read: 15
(c) A vehicle rental platform that arranged or executed more than 200 16
transactions in the state in the preceding calendar year shall collect and pay to the 17
department the taxes imposed under AS 43.52.010 - 43.52.099 and provide the 18
department with any books, papers, or records related to the tax. 19
(d) If a vehicle rental platform company fails to collect or pay the tax under 20
this section because incorrect or insufficient information was provided by a person 21
providing a leased or rented vehicle, the vehicle rental platform company is not liable 22
for the collection or payment of the tax if the vehicle rental platform company 23
demonstrates that the company made a reasonable effort to obtain the correct or 24
sufficient information from the person. 25
(e) In this section, 26
(1) "motor vehicle" means a vehicle that is self-propelled except a 27
vehicle moved by human or animal power; 28
(2) "vehicle rental platform" means an application, website, offline 29
booking service, or other system, whether online or offline, offered or used by a 30
vehicle rental platform company that enables the prearrangement of motor vehicle 31 34-LS0551\I
HB0123a -3- HB 123
New Text Underlined [DELETED TEXT BRACKETED]
rentals with motor vehicle owners that are not related by common ownership or 1
control with the vehicle rental platform; 2
(3) "vehicle rental platform company" means a company whose 3
primary business is arranging or executing the rental of vehicles through a vehicle 4
rental platform. 5
* Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 6
read: 7
ASSESSMENT AND COLLECTION LIMITATION. Notwithstanding AS 43.05.260 8
and 43.05.270, the Department of Revenue may not, on or after the effective date of this Act, 9
assess or collect taxes under AS 43.52.010 - 43.52.099 that were imposed before the effective 10
date of this Act on a transaction arranged or executed through a vehicle rental platform. If the 11
tax is not assessed or collected before the effective date of this Act, proceedings may not be 12
instituted in court for the assessment or collection of the tax. In this section, "vehicle rental 13
platform" has the meaning given in AS 43.52.050(e), enacted by sec. 4 of this Act. 14
* Sec. 6. This Act takes effect immediately under AS 01.10.070(c). 15