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AlaskaHB 12334th Legislature (2025-2026)HouseWALLET

TAXATION: VEHICLE RENTALS, SUBPOENAS

Sponsored By: Kevin McCabe (Republican)

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

Lower taxes for Alaska vehicle renters

From July 1, 2025, through June 30, 2028, Alaska sets lower passenger vehicle rental tax rates. Rentals arranged through a vehicle rental platform are taxed at 7%. Rentals arranged without a platform are taxed at 9%. Both rates apply to the total fees and costs charged for the lease or rental.

Alaska bars some older rental taxes

This rule takes effect immediately under the law. Alaska's Department of Revenue cannot assess or collect certain earlier taxes on platform-arranged or platform-executed vehicle rentals. The tax must have been imposed before this rule took effect and not already assessed or collected. The department also cannot start court proceedings to assess or collect those taxes. The rule does not require refunds of taxes already assessed or collected.

Higher taxes for platform vehicle renters

Beginning July 1, 2028, Alaska's tax on platform-arranged passenger vehicle rentals rises from 7% to 9%. The tax applies to the rental's total fees and costs. This adds 2 percentage points and matches the rate for rentals arranged without a platform.

Alaska courts can enforce tax subpoenas

Beginning July 1, 2025, Alaska's Department of Revenue can ask an Alaska superior court to enforce its subpoenas. This applies when someone neglects or refuses to obey a subpoena. The court can order compliance to the fullest extent the law allows. The law removes the reference to seeking enforcement through an appropriate court in another jurisdiction.

Rental platforms face duties and protections

Beginning July 1, 2025, platforms with more than 200 Alaska transactions in the prior calendar year must collect rental taxes. They must pay Alaska's Department of Revenue quarterly and provide related tax records. These platforms arrange vehicle rentals with owners not linked to them by common ownership or control. Otherwise, vehicle providers collect and pay the tax on the department's required schedule. Platforms avoid liability for collection or payment failures caused by wrong or incomplete vehicle-provider information if they show reasonable efforts to obtain correct information.

Sponsors & Cosponsors

Sponsor

  • Kevin McCabe

    Republican • House

Cosponsors

  • Matt Claman

    Democratic • Senate

  • Mike Cronk

    Republican • Senate

  • Forrest Dunbar

    Democratic • Senate

  • Robert Yundt

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 77 • No: 3

House vote • 5/20/2025

CONCUR AM OF (S) Y39 N1

Yes: 39 • No: 1

House vote • 5/12/2025

PASSED Y38 N2

Yes: 38 • No: 2

Actions Timeline

  1. (H) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

    7/30/2025House

  2. (H) LAW W/O GOVERNOR SIGNATURE 7/10 CHAPTER 18 SLA 25

    7/30/2025House

  3. (H) 12:05 P.M. 6/17/25 TRANSMITTED TO GOVERNOR

    7/30/2025House

  4. (H) EFFECTIVE DATE(S) ADOPTED Y40

    5/20/2025House

  5. (H) CONCUR AM OF (S) Y39 N1

    5/20/2025House

  6. (H) CONCUR MESSAGE RECEIVED AND TAKEN UP

    5/20/2025House

  7. (S) VERSION: SCS CSHB 123(FIN)

    5/20/2025Senate

  8. (S) TRANSMITTED TO (H) AS AMENDED

    5/20/2025Senate

  9. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/20/2025Senate

  10. (S) PASSED Y20 N-

    5/20/2025Senate

  11. (S) CROSS SPONSOR(S): DUNBAR, CRONK, CLAMAN, YUNDT

    5/20/2025Senate

  12. (S) READ THE THIRD TIME SCS CSHB 123(FIN)

    5/20/2025Senate

  13. (S) ADVANCED TO THIRD READING 5/20 CAL

    5/19/2025Senate

  14. (S) FIN SCS ADOPTED UC

    5/19/2025Senate

  15. (S) READ THE SECOND TIME

    5/19/2025Senate

  16. (S) RULES TO CALENDAR 5/19/2025

    5/19/2025Senate

  17. (S) Minutes (SFIN)

    5/16/2025Senate

  18. (S) Moved SCS CSHB 123(FIN) Out of Committee

    5/16/2025Senate

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

    5/16/2025Senate

  20. (S) FN1: INDETERMINATE(REV)

    5/16/2025Senate

  21. (S) DP: OLSON, STEDMAN, HOFFMAN, KAUFMAN, CRONK, MERRICK, KIEHL

    5/16/2025Senate

  22. (S) FIN RPT SCS(FIN) 7DP SAME TITLE

    5/16/2025Senate

  23. Audio/Video

    5/16/2025House

  24. (S) FIN

    5/13/2025Senate

  25. (S) READ THE FIRST TIME - REFERRALS

    5/13/2025Senate

Bill Text

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