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Alaska2026Passed Legislature

HB123

Alaska Vehicle Rental Tax Changes and Subpoena Rules

Last scannedSep 12, 2026, 4:46 AM

In one sentence

This law changes how much tax is charged on car rentals in Alaska based on whether a digital platform was used, sets rules for who must collect the tax, updates court powers to enforce subpoenas, and stops collecting unpaid taxes on past platform-arranged rentals.

What it does

  • Changes the passenger vehicle rental tax rate from nine percent to ten percent for rentals not arranged through a vehicle rental platform starting July 1, 2025.
  • Sets the tax rate at seven percent for passenger vehicles rented through a vehicle rental platform starting July 1, 2028.
  • Requires vehicle rental platforms with more than 200 transactions in Alaska during the previous calendar year to collect and pay taxes directly to the state department.
  • Allows courts to force people or companies to obey subpoenas for tax records if they refuse without a valid reason.
  • Stops the Department of Revenue from collecting unpaid taxes on platform-arranged rentals that happened before this law took effect.

Who it affects

  • People who rent passenger vehicles in Alaska
  • Companies and individuals providing leased or rented vehicles
  • Vehicle rental platforms with more than 200 transactions in the state per year
  • The Department of Revenue

Limits and unknowns

  • The lower seven percent tax rate for platform rentals does not start until July 1, 2028.
  • Vehicle rental platforms are not liable for unpaid taxes if they made a reasonable effort to get correct information from the vehicle owner but failed.

Plain language

Terms to know

vehicle rental platform
An app, website, offline booking service, or other system used to arrange car rentals with owners who do not share common ownership with the platform.
subpoena
A legal order requiring a person to provide documents related to tax records.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill text

Official summary

TAXATION: VEHICLE RENTALS, SUBPOENAS An Act relating to vehicle rental taxes; relating to the issuance of subpoenas related to tax records; and providing for an effective date.

Official activity

Bill history

  1. (H) EFFECTIVE DATE(S) OF LAW SEE CHAPTER1392
  2. (H) LAW W/O GOV SIGNATURE 7/10 CHAPTER 18 SLA 251392
  3. (H) 12:05 P.M. 6/17/25 TRANSMITTED TO GOVERNOR1373
  4. (H) EFFECTIVE DATE(S) ADOPTED Y401356
  5. (H) CONCUR AM OF (S) Y39 N11356
  6. (H) CONCUR MESSAGE RECEIVED AND TAKEN UP1355
  7. (S) VERSION: SCS CSHB 123(FIN)1380
  8. (S) TRANSMITTED TO (H) AS AMENDED1380
  9. (S) EFFECTIVE DATE(S) SAME AS PASSAGE1372
  10. (S) PASSED Y20 N-1372
  11. (S) CROSS SPONSOR(S): DUNBAR, CRONK, CLAMAN, YUNDT1372
  12. (S) READ THE THIRD TIME SCS CSHB 123(FIN)1371
  13. (S) ADVANCED TO THIRD READING 5/20 CAL1344
  14. (S) FIN SCS ADOPTED UC1344
  15. (S) READ THE SECOND TIME1344
  16. (S) RULES TO CALENDAR 5/19/20251344
  17. (S) Minutes (SFIN)Min
  18. (S) Moved SCS CSHB 123(FIN) Out of CommitteeText
  19. (S) FINANCE at 09:00 AM SENATE FINANCE 532Text
  20. (S) FN1: INDETERMINATE(REV)1302