Legislature(2025 - 2026)SENATE FINANCE 532
05/16/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB123 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 123 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 16, 2025
9:02 a.m.
9:02:23 AM
CALL TO ORDER
Co-Chair Olson 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
Liz Harpold, Staff, Senator Donny Olson; Representative
Kevin McCabe, Sponsor.
SUMMARY
CSHB 123(FIN)
TAXATION: VEHICLE RENTALS, SUBPOENAS
SCS CSHB 123(FIN) was REPORTED out of committee
with seven "do pass" recommendations and one
previously published indeterminate fiscal note:
FN 1(REV).
CS FOR HOUSE BILL NO. 123(FIN)
"An Act relating to vehicle rental taxes; relating to
the issuance of subpoenas related to tax records; and
providing for an effective date."
9:03:15 AM
Co-Chair Stedman MOVED to ADOPT the committee substitute
for CSHB 123(FIN), Work Draft 34-LS0551\O (Nauman,
5/15/25).
Co-Chair Hoffman OBJECTED for discussion.
9:03:42 AM
LIZ HARPOLD, STAFF, SENATOR DONNY OLSON, addressed the
Explanation of Changes (copy on file):
Title: No change.
Sections 1 2: No change.
Section 3: New section. Establishes a 9 percent tax
rate for passenger vehicle rentals.
Sections 4 5: Previous sections 3 4, renumbered.
Section 6: Previous section 5, renumbered. Includes
the definition of "vehicle rental platform."
Section 7: New section. Establishes a July 1, 2028
effective date for Section 3.
Section 8: New section. Establishes an immediate
effective date for Section 6.
Section 9: Previous section 6, renumbered and updated
to reflect the additional effective dates in Sections
7 and 8.
9:04:57 AM
REPRESENTATIVE KEVIN MCCABE, SPONSOR, explained that the
changes in the CS reflected a compromise between the
Senate, House, and industry. He thanked the committee. He
stated that it would lower the tax rate and levels the
playing field. He stated that the bill protected Alaskans
from back taxes. He felt that it was a practical overdue
bill for Alaskans. He supported the committee substitute.
Co-Chair Hoffman REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
Senator Kiehl reviewed the fiscal note, which was
indeterminate from the Department of Revenue (DOR).
Co-Chair Stedman MOVED to REPORT SCS CSHB 123(FIN) with
individual recommendations and attached fiscal note. There
being NO OBJECTION, it was so ordered.
SCS CSHB 123(FIN) was REPORTED out of committee with seven
"do pass" recommendations and one previously published
indeterminate fiscal note: FN 1(REV).
ADJOURNMENT
9:07:58 AM
The meeting was adjourned at 9:07 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 123 workdraft ver O.pdf |
SFIN 5/16/2025 9:00:00 AM |
HB 123 |
| HB 123 Explanation of Changes ver G to ver O 2025.05.15.pdf |
SFIN 5/16/2025 9:00:00 AM |
HB 123 |
| HB 123 Letter of Support _.pdf |
SFIN 5/16/2025 9:00:00 AM |
HB 123 |