This bill amends existing laws related to vehicle rental taxes in Alaska, specifically addressing the issuance of subpoenas for tax records and the tax rate for passenger vehicle rentals. The bill reduces the tax rate from 10 percent to nine percent on the total fees and costs charged for the lease or rental of a passenger vehicle. It also introduces new provisions that require vehicle rental platforms, which arrange or execute a significant number of transactions in the state, to collect and pay the applicable taxes to the Department of Revenue. Additionally, it clarifies that if a vehicle rental platform fails to collect or pay the tax due to incorrect information from the vehicle provider, the platform will not be held liable if it can demonstrate reasonable efforts to obtain accurate information.

Furthermore, the bill establishes a limitation on the assessment and collection of taxes imposed before the effective date of the Act for transactions arranged through vehicle rental platforms. This means that the Department of Revenue cannot assess or collect taxes for such transactions if they were not addressed before the Act's effective date. The bill is set to take effect immediately upon enactment.

Statutes affected:
SB0138A, AM SB 138, introduced 03/19/2025: 43.05.040, 43.52.020, 43.52.010, 43.52.050, 43.52.099
SB0138B, AM CSSB 138(TRA), introduced 04/11/2025: 43.05.040, 43.52.020, 43.52.010, 43.52.050, 43.52.099