This bill amends existing laws related to vehicle rental taxes in Alaska, specifically addressing the issuance of subpoenas for tax records and the tax rates applicable to vehicle rentals. It modifies AS 43.05.040(c) to allow the Department of Revenue to report non-compliance with subpoenas to the superior court without specifying another jurisdiction. Additionally, it revises the passenger vehicle rental tax rates in AS 43.52.020, changing the tax on rentals not arranged through a vehicle rental platform from 10% to 9%, while introducing a new rate of 7% for rentals arranged through such platforms.

Furthermore, the bill establishes new provisions in AS 43.52.050 regarding the collection and payment of taxes by vehicle rental platforms. It mandates that platforms with a significant number of transactions must collect and remit taxes, while also providing protections for platforms that fail to collect taxes due to incorrect information from vehicle providers. The bill also includes a provision that prevents the Department of Revenue from assessing or collecting taxes on transactions arranged through vehicle rental platforms prior to the bill's effective date. The act is set to take effect immediately upon passage.

Statutes affected:
HB0123A, AM HB 123, introduced 03/05/2025: 43.05.040, 43.52.020, 43.52.010, 43.52.050, 43.52.099