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CSSB 66(TRA): "An Act relating to the passenger and recreational vehicle rental taxes; and providing for an effective date."

00 CS FOR SENATE BILL NO. 66(TRA) 01 "An Act relating to the passenger and recreational vehicle rental taxes; and providing 02 for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.52.010 is amended to read: 05 Sec. 43.52.010. Levy of passenger and recreational vehicle rental tax. 06 Except as provided in (d) of this section, there [THERE] is imposed an excise tax 07 on the charge for the lease or rental of a passenger or recreational vehicle driven or 08 moved primarily on a highway or other public right-of-way maintained by the 09 [IN THIS] state [IF THE LEASE OR RENTAL OF THE PASSENGER VEHICLE 10 DOES NOT EXCEED A PERIOD OF 90 CONSECUTIVE DAYS]. 11 * Sec. 2. AS 43.52.010 is amended by adding new subsections to read: 12 (b) A lease or rental is exempt from the tax imposed under (a) of this section if 13 (1) the initial lease or rental contract is for a period of 14 (A) 28 days or more for a passenger vehicle;

01 (B) 90 days or more for a recreational vehicle; 02 (2) the initial lease or rental contract is in writing; and 03 (3) the lease or rental contract is not terminated before the expiration 04 of 28 days for a passenger vehicle or 90 days for a recreational vehicle. 05 (c) An extension of a lease or rental that is exempt under (b) of this section is 06 exempt if the extension is agreed upon before the expiration of the initial 28-day lease 07 or rental period for a passenger vehicle or the initial 90-day lease or rental period for a 08 recreational vehicle and there is no break between the initial period and the period of 09 the extension. 10 (d) The following passenger vehicles are exempt from tax under 11 AS 43.52.020(1): 12 (1) a commercial motor vehicle as that term is defined in 13 AS 28.90.990; 14 (2) emergency or fire equipment that is necessary to the preservation 15 of life or property; 16 (3) a farm vehicle that is controlled and operated by a farmer used to 17 transport agricultural products, farm machinery, or farm supplies to or from that 18 farmer's farm, not used in the operations of a common or contract motor carrier, and 19 used within 150 miles of the farmer's farm; 20 (4) a taxicab; 21 (5) a rental truck; in this subparagraph, "rental truck" means a motor 22 vehicle with a gross vehicle weight rating greater than 8,500 pounds that is designed, 23 used, or maintained primarily for the transportation of personal property; 24 (6) a vehicle provided by an automobile dealer to a customer as 25 replacement transportation during warranty, recall, or service contract repairs if the 26 dealer does not receive compensation from the customer; or 27 (7) a motorcycle or a motor-driven cycle as those terms are defined in 28 AS 28.90.990 and a sidecar for a motorcycle or motor-driven cycle; 29 (8) a construction vehicle; 30 (9) a vehicle used exclusively for hauling or delivering cargo; 31 (10) an all-terrain vehicle;

01 (11) a trailer designed to carry property. 02 * Sec. 3. AS 43.52.020 is amended to read: 03 Sec. 43.52.020. Rate of [PASSENGER] vehicle rental tax. The rate of the 04 tax levied in AS 43.52.010 is 05 (1) 10 percent of the total fees and costs charged for the lease or rental 06 of a [THE] passenger vehicle; 07 (2) three percent of the total fees and costs charged for the lease or 08 rental of a recreational vehicle. 09 * Sec. 4. AS 43.52.099(2) is amended to read: 10 (2) "passenger vehicle" means a motor vehicle as defined in 11 AS 28.90.990, including a car, sport utility vehicle, van, or truck, that is licensed 12 to operate [DRIVEN OR MOVED ON A HIGHWAY OR OTHER PUBLIC RIGHT- 13 OF-WAY] in the state [, BUT DOES NOT INCLUDE 14 (A) A COMMERCIAL MOTOR VEHICLE AS THAT TERM 15 IS DEFINED IN AS 28.90.990; 16 (B) EMERGENCY OR FIRE EQUIPMENT THAT IS 17 NECESSARY TO THE PRESERVATION OF LIFE OR PROPERTY; 18 (C) A FARM VEHICLE THAT IS CONTROLLED AND 19 OPERATED BY A FARMER, USED TO TRANSPORT AGRICULTURAL 20 PRODUCTS, FARM MACHINERY, OR FARM SUPPLIES TO OR FROM 21 THAT FARMER'S FARM, NOT USED IN THE OPERATIONS OF A 22 COMMON OR CONTRACT MOTOR CARRIER, AND USED WITHIN 150 23 MILES OF THE FARMER'S FARM; 24 (D) A RECREATIONAL VEHICLE; 25 (E) A TAXICAB; 26 (F) A RENTAL TRUCK; IN THIS SUBPARAGRAPH, 27 "RENTAL TRUCK" MEANS A MOTOR VEHICLE WITH A GROSS 28 VEHICLE WEIGHT RATING GREATER THAN 8,500 POUNDS THAT IS 29 DESIGNED, USED, OR MAINTAINED PRIMARILY FOR THE 30 TRANSPORTATION OF PERSONAL PROPERTY; 31 (G) A VEHICLE PROVIDED BY AN AUTOMOBILE

01 DEALER TO A CUSTOMER AS REPLACEMENT TRANSPORTATION 02 DURING WARRANTY, RECALL, OR SERVICE CONTRACT REPAIRS IF 03 THE DEALER DOES NOT RECEIVE COMPENSATION FROM THE 04 CUSTOMER; OR 05 (H) A MOTORCYCLE OR A MOTOR-DRIVEN CYCLE AS 06 THOSE TERMS ARE DEFINED IN AS 28.90.990]; 07 * Sec. 5. AS 43.52.099 is amended by adding a new paragraph to read: 08 (6) "personal property" has the meaning given in AS 01.10.060; 09 * Sec. 6. AS 43.52.030 and 43.52.040 are repealed. 10 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).