TAXATION: VEHICLE RENTALS, SUBPOENAS

Enrolled HB 123
LAWS OF ALASKA

2025

Source Chapter No.
SCS CSHB 123(FIN) _______

AN ACT

Relating to vehicle rental taxes; relating to the issuance of s ubpoenas related to tax records;
and providing for an effective date.

_______________

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

THE ACT FOLLOWS ON PAGE 1

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AN ACT

Relating to vehicle rental taxes; relating to the issuance of s ubpoenas related to tax records; 1
and providing for an effective date. 2
_______________ 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 secti on, the department may report t he 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 subpoe na. The court, to the 8
maximum extent permitted by law, may compel obedience to the su bpoena [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

Enrolled HB 123 -2-
(1) nine [10] percent of the total fees and costs charged for the lease or 1
rental of a [THE] passenger vehicle n o t a r r a n g e d t h r o u g h a v e h i c l e r e n t a l 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 43.52.020, as amended by sec. 2 of this Act, is amended to read: 6
Sec. 43.52.020. Rate of passenger vehicle rental tax. The rate of the tax 7
levied in AS 43.52.010 is 8
[(1)] nine percent of the total fees and costs charged for the lease or 9
rental of the [A] passenger vehicle [NOT ARRANGED THROUGH A VEHICLE 10
RENTAL PLATFORM; OR 11
(2) SEVEN PERCENT OF THE TOTAL FEES AND COSTS 12
CHARGED FOR THE LEASE OR RENTAL OF A PASSENGER VEHICLE 13
THROUGH A VEHICLE RENTAL PLATFORM]. 14
* Sec. 4. AS 43.52.050(a) is amended to read: 15
(a) The taxes imposed by AS 43.52.010 - 43.52.099 shall be col lected and 16
paid to the department 17
(1) by the person who provides the leased or rented vehicle unless the 18
lease or rental was arranged or executed through a vehicle rent al platform under 19
(c) of this section; and 20
(2) in the manner and at the times required by the department by 21
regulation, except that a vehicle rental platform collecting and paying t he tax 22
under (c) of this section shall pay the tax quarterly. 23
* Sec. 5. AS 43.52.050 is amended by adding new subsections to read: 24
(c) A vehicle rental platform that arranged or executed more t han 200 25
transactions in the state in the preceding calendar year shall collect and pay to the 26
department the taxes imposed under AS 43.52.010 - 43.52.099 and provide the 27
department with any books, papers, or records related to the tax. 28
(d) If a vehicle rental platform company fails to collect or p ay the tax under 29
this section because incorrect or insufficient information was provided by a person 30
providing a leased or rented vehic le, the vehicle rental platfo rm company is not liable 31

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for the collection or payment of the tax if the vehicle rental platform company 1
demonstrates that the company made a reasonable effort to obtai n the correct or 2
sufficient information from the person. 3
(e) In this section, 4
(1) "motor vehicle" means a vehicle that is self-propelled exc ept a 5
vehicle moved by human or animal power; 6
(2) "vehicle rental platform" means an application, website, o ffline 7
booking service, or other system, whether online or offline, of fered or used by a 8
vehicle rental platform company that enables the prearrangement of motor vehicle 9
rentals with motor vehicle owners that are not related by commo n ownership or 10
control with the vehicle rental platform; 11
(3) "vehicle rental platform company" means a company whose 12
primary business is arranging or executing the rental of vehicl es through a vehicle 13
rental platform. 14
* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 15
read: 16
ASSESSMENT AND COLLECTION LIMITATION. Notwithstanding AS 43.05. 260 17
and 43.05.270, the Department of Re venue may not, on or after t he effective date of this 18
section, assess or collect taxes under AS 43.52.010 - 43.52.099 that were imposed before the 19
effective date of this section on a transaction arranged or exe cuted through a vehicle rental 20
platform. If the tax is not asse ssed or collected before the ef fective date of this section, 21
proceedings may not be instituted in court for the assessment o r collection of the tax. In this 22
section, "vehicle rental platform" means an application, websit e, offline booking service, or 23
other system, whether online or offline, offered or used by a v ehicle rental platform company 24
that enables the prearrangement of motor vehicle rentals with m otor vehicle owners that are 25
not related by common ownership or control with the vehicle rental platform. 26
* Sec. 7. Section 3 of this Act takes effect July 1, 2028. 27
* Sec. 8. Section 6 of this Act takes effect immediately under AS 01.10.070(c). 28
* Sec. 9. Except as provided in secs. 7 and 8 of this Act, this Act takes effect July 1, 2025. 29