The Alaska House of Representatives passed legislation sponsored by Rep. Adam wool which brings vehicle rental networks in line with the regulatory framework of Alaska’s car rental industry, relieves a regulatory burden on Alaskans, and helps the state capture millions in lost revenue. House Bill 90 clarifies that private vehicle rental networks are required to comply with existing statutes regulating car rental providers and ensures those who rent through these networks are able to comply with those same laws and regulations, including Alaska’s Vehicle Rental Tax.
Rep. Adam Wool
“This is not a new tax. This is a vehicle rental tax that already exists on the books. It’s been around for, I think, 18 years or so as a state vehicle rental tax. This bill does not introduce anything new. The vehicle rental tax applies to anyone renting a vehicle in Alaska whether its going to a brick-and-mortar such as Hertz or Avis or whether it’s going to a private individual or whether it’s using what is now called a peer-to-peer rental network platform. People are responsible for paying the tax. Currently, the brick-and-mortar places, they put it on your bill. The person renting the tax pays it, the company who rents the cars takes the tax money and remits it to the state. It’s been working well for quite a long time.”
Rep. Wool adds:
“This will relieve the car owner that puts their car on Turo or other platforms or their RV on Outdoorsy. They will not have to take care of paying the tax themselves, it will be taken care of.”
Currently, Alaskans who rent out their cars using a vehicle rental network platform are required to remit 10% of their rental fees to the State to pay the Vehicle Rental Tax. Updating the statute transfers that burden to the companies facilitating the rental, relieving the car owner from having to collect and remit those tax dollars.
HB 90 moves to the Senate for consideration.
Transcribed audio courtesy of KTOO 360TV.
