Back to Alaska

SB138 • 2026

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.

Housing Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
SENATOR CLAMAN
Last action
2025-05-02
Official status
(S) FIN
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details about the enforcement mechanisms for smaller rental platforms or consequences if a platform fails to comply after receiving correct information.

Vehicle Rental Taxes and Subpoenas

This act changes vehicle rental tax rates, updates rules for issuing subpoenas related to tax records, and sets new requirements for large vehicle rental platforms.

What This Bill Does

  • Changes the rate of passenger vehicle rental taxes from 10% to 9%
  • Allows courts in Alaska to enforce compliance with tax-related subpoenas
  • Requires vehicle rental platforms that arrange more than 200 transactions annually to collect and pay taxes on behalf of renters
  • Provides protection for rental platform companies if they cannot obtain correct or sufficient information from the person providing a leased or rented vehicle

Who It Names or Affects

  • Vehicle rental businesses in Alaska
  • People who rent vehicles through platforms like apps or websites
  • Courts and law enforcement agencies dealing with tax-related subpoenas

Terms To Know

vehicle rental platform
An application, website, offline booking service, or other system that enables the prearrangement of motor vehicle rentals.
subpoena
A legal document ordering someone to appear in court and give evidence.

Limits and Unknowns

  • The bill does not specify what happens if a rental platform fails to collect or pay the tax after receiving correct information.
  • It is unclear how this act will affect smaller rental platforms that arrange fewer than 200 transactions annually.

Bill History

  1. 2025-05-02 Min

    (S) Minutes (SFIN)

  2. 2025-05-02 Text

    (S) Heard & Held

  3. 2025-05-02 Text

    (S) FINANCE at 09:00 AM SENATE FINANCE 532

  4. 2025-04-11 781

    (S) REFERRED TO FINANCE

  5. 2025-04-11 781

    (S) FN1: INDETERMINATE(REV)

  6. 2025-04-11 781

    (S) NR: BJORKMAN, SHOWER, TOBIN, STEDMAN

  7. 2025-04-11 781

    (S) TRA RPT CS 4NR SAME TITLE

  8. 2025-04-10 Min

    (S) Minutes (STRA)

  9. 2025-04-10 Text

    (S) Moved CSSB 138(TRA) Out of Committee

  10. 2025-04-10 Text

    (S) TRANSPORTATION at 01:30 PM BUTROVICH 205

  11. 2025-04-03 Min

    (S) Minutes (STRA)

  12. 2025-04-03 Text

    (S) Heard & Held

  13. 2025-04-03 Text

    (S) TRANSPORTATION at 01:30 PM BUTROVICH 205

  14. 2025-03-19 564

    (S) TRA, FIN

  15. 2025-03-19 564

    (S) READ THE FIRST TIME - REFERRALS

Official Summary Text

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.

Current Bill Text

Read the full stored bill text
SB0138B -1- CSSB 138(TRA)
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0749\N

CS FOR SENATE BILL NO. 138(TRA)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY THE SENATE TRANSPORTATION COMMITTEE

Offered: 4/11/25
Referred: Finance

Sponsor(s): SENATOR CLAMAN
A BILL

FOR AN ACT ENTITLED

"An Act relating to vehicle rental taxes; relating to the issua nce of subpoenas related to 1
tax records; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 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 nine [10] percent of the total fees and costs charged for the 14
34-LS0749\N
CSSB 138(TRA) -2- SB0138B
New Text Underlined [DELETED TEXT BRACKETED]

lease or rental of a [THE] passenger vehicle. 1
* Sec. 3. AS 43.52.050(a) is amended to read: 2
(a) The taxes imposed by AS 43.52.010 - 43.52.099 shall be col lected and 3
paid to the department 4
(1) by the person who provides the leased or rented vehicle unless the 5
lease or rental was arranged or executed through a vehicle rent al platform under 6
(c) of this section; and 7
(2) in the manner and at the times required by the department by 8
regulation except that a vehicle rental platform collecting and paying the tax 9
under (c) of this section shall pay the tax quarterly. 10
* Sec. 4. AS 43.52.050 is amended by adding new subsections to read: 11
(c) A vehicle rental platform that arranged or executed more t han 200 12
transactions in the state in the preceding calendar year shall collect and pay to the 13
department the taxes imposed under AS 43.52.010 - 43.52.099 and provide the 14
department with any books, papers, or records related to the tax. 15
(d) If a vehicle rental platform company fails to collect or p ay the tax under 16
this section because incorrect or insufficient information was provided by a person 17
providing a leased or rented vehic le, the vehicle rental platfo rm company is not liable 18
for the collection or payment of the tax if the vehicle rental platform company 19
demonstrates that the company made a reasonable effort to obtai n the correct or 20
sufficient information from the person. 21
(e) In this section, 22
(1) "motor vehicle" means a vehicle that is self-propelled exc ept a 23
vehicle moved by human or animal power; 24
(2) "vehicle rental platform" means an application, website, o ffline 25
booking service, or other system, whether online or offline, of fered or used by a 26
vehicle rental platform company that enables the prearrangement of motor vehicle 27
rentals with motor vehicle owners that are not related by commo n ownership or 28
control with the vehicle rental platform; 29
(3) "vehicle rental platform company" means a company whose 30
primary business is arranging or executing the rental of vehicl es through a vehicle 31
34-LS0749\N
SB0138B -3- CSSB 138(TRA)
New Text Underlined [DELETED TEXT BRACKETED]

rental platform. 1
* Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 2
read: 3
ASSESSMENT AND COLLECTION LIMITATION. Notwithstanding AS 43.05. 260 4
and 43.05.270, the Department of Re venue may not, on or after t he effective date of this Act, 5
assess or collect taxes under AS 43.52.010 - 43.52.099 that wer e imposed before the effective 6
date of this Act on a transaction arranged or executed through a vehicle rental platform. If the 7
tax is not assessed or collected before the effective date of t his Act, proceedings may not be 8
instituted in court for the assessment or collection of the tax . In this section, "vehicle rental 9
platform" has the meaning given in AS 43.52.050(e), enacted by sec. 4 of this Act. 10
* Sec. 6. This Act takes effect immediately under AS 01.10.070(c). 11