Legislature(2013 - 2014)SENATE FINANCE 532
04/09/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB94 | |
| HB84 | |
| HB99 | |
| HB153 | |
| HB56 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 30 | TELECONFERENCED | |
| += | SB 96 | TELECONFERENCED | |
| + | HB 94 | TELECONFERENCED | |
| + | HB 84 | TELECONFERENCED | |
| + | HB 99 | TELECONFERENCED | |
| + | HB 153 | TELECONFERENCED | |
| + | HB 56 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 56
"An Act excluding motorcycles and motor-driven cycles
from the passenger vehicle rental tax; and providing
for an effective date."
JAMES WALDO, STAFF, REPRESENTATIVE LINDSEY HOLMES,
explained that the bill would eliminate the passenger
vehicle rental for the purposes of motorcycle rentals. He
noted the motorcycle rentals contributed to a small portion
of the passenger vehicle rental tax. He relayed that when
the tax was originally passed by the legislature
motorcycles had not been considered. The legislature had
exempted recreation vehicles such as RV rentals from the 10
percent tax. He asserted that motorcycles were rented for
recreational tourism only and only during certain times of
the year. He stated that the cost of rental a motorcycle
was significantly higher than renting a car. Motorcycles
were rented for approximately $200 per day, which made the
10 percent tax, over a 10 day excursion, nearly as much as
another day's rental. Travelers that rented motorcycles
stayed in hotels and eat in restaurants, thus already
contributing to the states local sales and bed taxes.
Elimination of the tax would aid people in growing
motorcycle rental businesses in the state and would bring
more independent travelers into the state for extended
visits.
10:03:32 AM
Co-Chair Meyer noted that the bill sponsor had been
amicable to a smaller tax amount, but once the total amount
of the smaller tax was examined it was clear that the cost
to collect the tax would surpass the revenues it would
generate.
10:04:13 AM
Co-Chair Meyer wondered about the impetus for the
legislation.
Mr. Waldo responded that the concept was introduced by the
motorcycle rental businesses. The Department of Revenue had
only decided a few years prior to tax the businesses, which
had been a surprise to the industry. The department had
originally asked for back taxes for the previous 19 years
that they had been collection the passenger vehicle rental
tax, but had decided against the punitive measure.
10:05:48 AM
Senator Bishop wondered if snow machine rentals were taxed.
BRANDON SPANOS, AUDIT SUPERVISOR, TAX DIVISION, DEPARTMENT
OF REVENUE (via teleconference), testified that he was
unsure whether snow machines were taxed. He offered to get
back to the committee with the information.
10:06:52 AM
Co-Chair Meyer though that the tax would pertain to snow
machines.
Mr. Spanos understood that the tax was for highway use
vehicles.
10:07:14 AM
NANCY HULL, ALASKA MOTORCYCLE ADVENTURES, MAT-SU VALLEY
(via teleconference), testified in support of HB 56.
10:09:29 AM
Co-Chair Meyer noted that Ms. Hull had submitted written
testimony as well(copy on file).
10:09:48 AM
Co-Chair Meyer CLOSED public testimony.
10:10:01 AM
Vice-Chair Fairclough noted the fiscal note reflected the
loss of revenue of $12,000 per year from FY15 and into
future years.
10:10:29 AM
Vice-Chair Fairclough MOVED to REPORT HB 56 out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 56 was REPORTED out of committee with a "do pass"
recommendation and with previously published fiscal impact
note: FN1 (REV).
10:10:59 AM
Vice-Chair Fairclough wondered if an amendment for HB 30
could be considered at the 1:30pm meeting.
Co-Chair Meyer said yes.