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 requiring vehicle rental platforms that arrange or execute a significant number of transactions in the state to collect and pay the applicable taxes, while providing necessary records 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 its effective date for transactions arranged through vehicle rental platforms, preventing the Department of Revenue from pursuing these taxes in court if they were not assessed or collected prior to the bill's enactment. The bill is set to take effect immediately upon passage.

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