00 CS FOR SENATE BILL NO. 178(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. There 06 is imposed an excise tax on the charge for the lease or rental of a passenger or 07 recreational vehicle in this state [IF THE LEASE OR RENTAL OF THE 08 PASSENGER VEHICLE DOES NOT EXCEED A PERIOD OF 90 CONSECUTIVE 09 DAYS]. 10 * Sec. 2. AS 43.52.010 is amended by adding new subsections to read: 11 (b) A lease or rental is exempt from the tax imposed under (a) of this section if 12 (1) the initial lease or rental contract is for a period of 30 days or more; 13 (2) the initial lease or rental contract is in writing; and 14 (3) the lease or rental contract is not terminated before the expiration 01 of 30 days. 02 (c) An extension of a lease or rental that is exempt under (b) of this section is 03 exempt if the extension is agreed upon before the expiration of the initial 30-day lease 04 or rental period and there is no break between the initial period and the period of the 05 extension. 06 * Sec. 3. AS 43.52.020 is amended to read: 07 Sec. 43.52.020. Rate of [PASSENGER] vehicle rental tax. The rate of the 08 tax levied in AS 43.52.010 is 09 (1) 10 percent of the total fees and costs charged for the lease or rental 10 of a [THE] passenger vehicle; 11 (2) three percent of the total fees and costs charged for the lease or 12 rental of a recreational vehicle. 13 * Sec. 4. AS 43.52.099(2) is amended to read: 14 (2) "passenger vehicle" means a motor vehicle as defined in 15 AS 28.90.990 that is driven or moved on a highway or other public right-of-way in the 16 state, and is rented or leased for the primary purpose of transporting passengers 17 but does not include 18 (A) a commercial motor vehicle as that term is defined in 19 AS 28.90.990; 20 (B) emergency or fire equipment that is necessary to the 21 preservation of life or property; 22 (C) a farm vehicle that is controlled and operated by a farmer, 23 used to transport agricultural products, farm machinery, or farm supplies to or 24 from that farmer's farm, not used in the operations of a common or contract 25 motor carrier, and used within 150 miles of the farmer's farm; 26 (D) a recreational vehicle; 27 (E) a taxicab; 28 (F) [A RENTAL TRUCK; IN THIS SUBPARAGRAPH, 29 "RENTAL TRUCK" MEANS] a motor vehicle with a gross vehicle weight 30 rating greater than 6,500 [8,500] pounds [THAT IS DESIGNED, USED, OR 31 MAINTAINED PRIMARILY FOR THE TRANSPORTATION OF 01 PERSONAL PROPERTY]; 02 (G) a vehicle provided by an automobile dealer to a customer 03 as replacement transportation during warranty, recall, or service contract 04 repairs if the dealer does not receive compensation from the customer; or 05 (H) a motorcycle or a motor-driven cycle as those terms are 06 defined in AS 28.90.990; 07 * Sec. 5. AS 43.52.030 and 43.52.040 are repealed. 08 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).