Legislature(2025 - 2026)SENATE FINANCE 532
05/02/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB138 | |
| HB53 || HB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 138 | TELECONFERENCED | |
| += | HB 53 | TELECONFERENCED | |
| += | HB 55 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 2, 2025
9:02 a.m.
9:02:27 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Mike Cronk
Senator James Kaufman
Senator Jesse Kiehl
Senator Kelly Merrick
MEMBERS ABSENT
None
ALSO PRESENT
Carly Dennis, Staff, Senator Matt Claman; Pete Ecklund,
Staff, Senator Lyman Hoffman.
PRESENT VIA TELECONFERENCE
Senator Matt Claman, Sponsor; Brandon Spanos, Deputy
Director, Tax Division, Department of Revenue, Anchorage;
Nicole Stewart, Self, Fairbanks; Claire Holland LeClaire,
Self, Anchorage.
SUMMARY
SB 138 TAXATION: VEHICLE RENTALS, SUBPOENAS
SB 138 was HEARD and HELD in committee for
further consideration.
CSHB 53(FIN) am(brf sup maj fld)(efd fld)
APPROP: OPERATING BUDGET; CAP; SUPP
SCS CSHB 53(FIN) was REPORTED out of committee
with five "do pass" recommendations and two
"amend" recommendations.
CSHB 55(FIN)
APPROP: MENTAL HEALTH BUDGET
SCS CSHB 55(FIN) was REPORTED out of committee
with five "do pass" recommendations and two "no
recommendations."
SENATE BILL NO. 138
"An Act relating to vehicle rental taxes; relating to
the issuance of subpoenas related to tax records; and
providing for an effective date."
9:03:33 AM
CARLY DENNIS, STAF, SENATOR MATT CLAMAN, introduced the
legislation.
Co-Chair Stedman asked for a history of the issue.
Ms. Dennis replied stated that the bill had been around in
various forms over the last five years.
9:07:52 AM
SENATOR MATT CLAMAN, SPONSOR (via teleconference), stated
that the bill had been copied initially from the year
prior, but the Labor and Commerce Committee changed it to a
flat fee of 9 percent for all rentals.
Senator Cronk queried the expected increase in tax revenue.
Ms. Dennis replied that the fiscal note was indeterminate
because the Department of Revenue (DOR) was unaware of how
many people were using the platforms.
Co-Chair Hoffman remarked that the fiscal note was still
forthcoming.
Senator Kiehl remarked that Anchorage a similar law, and
wondered about the impact on their tax collections.
Ms. Dennis replied that, discounting the year 2020,
Anchorage had seen approximately $9 million a year from
vehicle rental tax revenue.
9:10:04 AM
Senator Kiehl wondered whether Anchorage had changed its
tax rate when it initiated the vehicle rental tax.
Ms. Dennis replied that they did not.
Senator Kiehl surmised that the bill introduced a tax cut
that raised more revenue.
Ms. Dennis agreed with that statement.
Co-Chair Stedman stated that he had a question for the
deputy tax director.
Senator Merrick wondered whether it was a new tax.
Ms. Dennis replied that it was not.
Co-Chair Stedman wondered whether the tax was currently in
place, and queried the constitutional provisions of the
tax.
9:11:17 AM
BRANDON SPANOS, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT
OF REVENUE, ANCHORAGE (via teleconference), replied that
the tax was overly broad, and stated that it was imposed on
the individual renting the vehicle with the owner
collecting and remitting the tax. He stated the tax would
apply to vehicles rented through the platform, but the
platforms were not cooperating with the tax information.
Co-Chair Stedman requested the letters and dollars
collected. He was concerned about the departments
constitutional obligation to collect the taxes.
9:15:07 AM
Co-Chair Hoffman asked about a timeframe from the committee
to receive the requested communications.
Mr. Spanos replied that he could provide the information
within the week.
9:15:40 AM
Co-Chair Hoffman asked that they be submitted by Wednesday.
Co-Chair Stedman asked for the details related to the
letters.
Senator Kiehl recalled that there would be information
received by the Department of Revenue (DOR) which would
give information about individuals renting the cars on the
platforms. He noted that the bill stopped DOR from acting
retroactively. He wondered how many Alaskans might receive
a letter about what they owe in back taxes.
Mr. Spanos replied that the IRS had the authority to
request a 1099-K from the platform that issued payments in
excess of $600 to their customers.
9:20:19 AM
Senator Kiehl felt that the policy should be set
legislatively.
Senator Claman stated stressed that there were existing
obligations within statute to enforce law
9:21:57 AM
NICOLE STEWART, SELF, FAIRBANKS (via teleconference), spoke
in support of the bill.
Co-Chair Hoffman wondered how the taxes were being paid.
Ms. Stewart replied that she had not received a letter and
did not know who to pay the taxes.
Co-Chair Hoffman wondered whether the taxes would be set
aside.
Ms. Stewart replied that she was not setting money aside.
9:24:18 AM
CLAIRE HOLLAND LECLAIRE, SELF, ANCHORAGE (via
teleconference), spoke in support of the legislation.
9:26:17 AM
Co-Chair Hoffman OPENED public testimony.
Co-Chair Hoffman CLOSED public testimony.
Co-Chair Hoffman noted that the Department of Natural
Resources (DNR) needed to provide a fiscal note.
Senator Claman thanked the committee for hearing the bill.
SB 138 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 53(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; and making supplemental
appropriations."
CS FOR HOUSE BILL NO. 55(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
9:27:59 AM
Senator Kaufman MOVED Amendment 1 (copy on file):
DEPARTMENT: Revenue
APPROPRIATION: Alaska Permanent Fund Corporation
ALLOCATION: Various
ADD: $14,564.3 1105 PF Gross
POSITIONS: Add I PFT position
EXPLANATION: Match the Governor's amended budget
structure, funding, and transactions for the Alaska
Permanent Fund Corporation by reversing all SCS2
transactions reflected in the attached Transaction
Compare report, and restoring the GovAmd+
transactions.
Co-Chair Hoffman OBJECTED for discussion.
Senator Kaufman explained the amendment.
Co-Chair Hoffman wondered if the chair of the subcommittee
of the Department of Revenue had comments on the
legislation.
Senator Kiehl opposed the amendment.
9:34:17 AM
Co-Chair Hoffman remarked that the amendment could be
addressed in Conference Committee.
Senator Kiehl stated that he did not believe anything was
hidden.
Senator Kaufman felt that certain words could erode the
trust of the management of the Permanent Fund.
Senator Kaufman WITHDREW his amendment.
9:36:58 AM
Co-Chair Hoffman MOVED to ADOPT Amendment 2 (copy on file):
DEPARTMENT: Department of Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Central Region Fisheries Management
ADD: $200.0 SDPR (1108)
EXPLANATION: Add $200.0 SDPR for Anchor Point In-
season Management Data Collection
Co-Chair Hoffman OBJECTED for discussion.
9:37:07 AM
PETE ECKLUND, STAFF, SENATOR LYMAN HOFFMAN, explained the
amendment.
Co-Chair Hoffman WITHDREW his OBJECTION.
Senator Kaufman felt that generally the process in the
committee had been well, but felt that the process on this
particular issue was not managed properly.
Co-Chair Hoffman appreciated the comments.
9:40:58 AM
AT EASE
9:41:10 AM
RECONVENED
9:41:19 AM
Co-Chair Stedman MOVED to REPORT SCS CSHB 53(FIN) out of
committee with individual recommendations, and MOVED that
Legislative Legal and the Legislative Finance Division make
any technical and conforming changes. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman MOVED to REPORT SCS CSHB 55(FIN) out of
committee with individual recommendations, and MOVED that
Legislative Legal and the Legislative Finance Division make
any technical and conforming changes.
9:42:36 AM
AT EASE
9:44:42 AM
RECONVENED
SCS CSHB 53(FIN) was REPORTED out of committee with five
"do pass" recommendations and two "amend" recommendations.
SCS CSHB 55(FIN) was REPORTED out of committee with five
"do pass" recommendations and two "no recommendations."
ADJOURNMENT
9:45:09 AM
The meeting was adjourned at 9:45 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 138 - Explanation of Changes Version A to Version N 4.8.2025.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |
| SB 138 Supporting Document - Legal Opinion on Statute of Limitations 3.17.2025.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |
| SB 138 Supporting Document - Testimony received as of 4.16.2025.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |
| SB 138 Supporting Document - Anchorage Municipality Vehicle Rental Tax Revenue.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |
| SB 138 Supporting Document - Anchorage AO 2020-055.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |
| SB 138 Sectional Analysis Version N 2025.4.14.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |
| SB 138 Sponsor Statement v. N 2025.4.11.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |
| HB 53 Amendment 1 Kaufman.pdf |
SFIN 5/2/2025 9:00:00 AM |
HB 53 |
| HB 53 Amendment 2 Hoffman.pdf |
SFIN 5/2/2025 9:00:00 AM |
HB 53 |
| SB 138 DOR Response to SFIN questions on SB 138 05.08.2025.pdf |
SFIN 5/2/2025 9:00:00 AM |
SB 138 |