SCS HB 90(TRA): "An Act relating to rental vehicles; relating to vehicle rental networks; relating to vehicle rental taxes; relating to the collection of a municipal sales tax for certain vehicle rentals; relating to vehicle rental fees; and providing for an effective date."
00 SENATE CS FOR HOUSE BILL NO. 90(TRA) 01 "An Act relating to rental vehicles; relating to vehicle rental networks; relating to 02 vehicle rental taxes; relating to the collection of a municipal sales tax for certain vehicle 03 rentals; relating to vehicle rental fees; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 SHORT TITLE. This Act may be known as the Vehicle Rental Modernization Act. 08 * Sec. 2. AS 43.52.020 is amended to read: 09 Sec. 43.52.020. Rate of passenger vehicle rental tax. The rate of the tax 10 levied in AS 43.52.010 is 11 (1) 10 percent of the total fees and costs charged for the lease or rental 12 of a [THE] passenger vehicle from a vehicle rental business; 13 (2) five percent of the total fees and costs charged for the lease or 14 rental of a passenger vehicle from a vehicle rental individual.
01 * Sec. 3. AS 43.52.020 is amended by adding a new subsection to read: 02 (b) In this section, 03 (1) "vehicle rental business" has the meaning given in AS 45.45.459; 04 (2) "vehicle rental individual" has the meaning given in AS 45.45.459. 05 * Sec 4. AS 43.52.050(a) is amended to read: 06 (a) The taxes imposed by AS 43.52.010 - 43.52.099 shall be collected and 07 paid to the department 08 (1) by the 09 (A) vehicle rental network company that arranged or 10 executed the lease or rental if the lease or rental was arranged or executed 11 through a vehicle rental network; or 12 (B) person who provides the leased or rented vehicle if the 13 lease or rental was not arranged or executed through a vehicle rental 14 network; and 15 (2) in the manner and at the times required by the department by 16 regulation. 17 * Sec. 5. AS 43.52.050 is amended by adding a new subsection to read: 18 (c) In this section, "vehicle rental network" has the meaning given in 19 AS 45.45.459. 20 * Sec. 6. AS 43.52.090 is amended by adding a new subsection to read: 21 (b) The tax imposed in AS 43.52.020 does not apply to a person who rents 22 three or fewer vehicles in the state. 23 * Sec. 7. AS 45.45 is amended by adding new sections to article 8 to read: 24 Sec. 45.45.425. Vehicle rental network rentals. (a) A vehicle rental business 25 or vehicle rental individual that arranges or executes passenger vehicle or recreational 26 vehicle rentals through a vehicle rental network is subject to the same laws and 27 regulations as other passenger vehicle or recreational vehicle rentals, including 28 AS 19.75.915, AS 28.10.375, AS 28.35.320, AS 43.52, and AS 45.45.425 - 45.45.459. 29 (b) A municipality that imposes a sales tax on a vehicle rental may require a 30 vehicle rental network company to collect and pay the municipal sales tax on behalf of 31 a vehicle rental business or vehicle rental individual.
01 Sec. 45.45.430. Electronic notice and disclosure. (a) If a vehicle rental 02 business or vehicle rental individual is required to provide a notice or disclosure, the 03 vehicle rental business or vehicle rental individual may deliver the notice or disclosure 04 electronically. 05 (b) A person may accept a notice or disclosure from a vehicle rental business 06 or vehicle rental individual electronically. The acceptance of a notice or disclosure is 07 valid until the person affirmatively withdraws acceptance of the notice or disclosure. 08 * Sec. 8. AS 45.45.450 is amended to read: 09 Sec. 45.45.450. Identification of cost recovery fees. If a vehicle rental [CAR] 10 business or vehicle rental individual charges a cost recovery fee, the vehicle rental 11 [CAR] business or vehicle rental individual shall separately identify and charge for 12 each cost recovery fee in writing in the vehicle rental [CAR] agreement. In this 13 section, "cost recovery fee" means a vehicle licensing cost recovery fee, an airport- 14 related cost, a government tax, or a government surcharge. 15 * Sec. 9. AS 45.45.455 is amended to read: 16 Sec. 45.45.455. Vehicle licensing cost recovery fee. (a) A vehicle rental 17 [CAR] business or vehicle rental individual may not charge a renter a vehicle 18 licensing cost recovery fee unless the vehicle licensing cost recovery fee represents a 19 good faith estimate by the vehicle rental [CAR] business or vehicle rental individual 20 of the average daily cost to the vehicle rental [CAR] business or vehicle rental 21 individual of recovering its actual total annual licensing costs in the state during a 22 calendar year. 23 (b) If the total amount of the vehicle licensing cost recovery fees collected by 24 a vehicle rental [CAR] business or vehicle rental individual during a calendar year 25 exceeds the actual amount of the vehicle rental [CAR] business's or vehicle rental 26 individual's licensing costs during that calendar year, the vehicle rental [CAR] 27 business or vehicle rental individual shall 28 (1) retain the excess amount; and 29 (2) adjust the good faith estimate required by (a) of this section for the 30 next calendar year so that the good faith estimate reflects the excess amount. 31 (c) In addition to the adjustment required by (b) of this section, a vehicle
01 rental [CAR] business or vehicle rental individual may adjust its vehicle licensing 02 cost recovery fee during the calendar year when the excess vehicle licensing cost 03 recovery fees are collected if the vehicle licensing cost recovery fee otherwise 04 complies with this section. 05 * Sec. 10. AS 45.45.459 is amended to read: 06 Sec. 45.45.459. Definitions. In AS 45.45.425 - 45.45.459 [AS 45.45.450 - 07 45.45.459], 08 (1) ["CAR" MEANS A MOTOR VEHICLE; 09 (2)] "licensing cost" means the cost of titling, registering, obtaining 10 license plates for, or inspection of the rental cars of a vehicle rental [CAR] business or 11 vehicle rental individual in the state; 12 (2) "passenger vehicle" has the meaning given in AS 43.52.099; 13 (3) "personal vehicle" means a motor vehicle that is owned, leased, 14 or otherwise authorized to be rented by the owner; "personal vehicle" does not 15 include a taxi, limousine, or other commercial motor vehicle for hire; 16 (4) "recreational vehicle" has the meaning given in AS 43.52.099; 17 (5) "vehicle" [(3) "MOTOR VEHICLE"] has the meaning given to 18 "motor vehicle" in AS 28.90.990; 19 (6) [(4) "RENTAL CAR BUSINESS" MEANS A PERSON WHO 20 ENGAGES IN THE BUSINESS OF RENTING CARS IN THE STATE; 21 (5)] "vehicle licensing cost recovery fee" means a fee to recover 22 licensing costs; 23 (7) "vehicle rental business" means a person that, as the person's 24 primary business, rents vehicles in the state or, through a vehicle rental network, 25 arranges or executes vehicle rentals in the state; 26 (8) "vehicle rental individual" means a person who rents vehicles 27 in the state or, through a vehicle rental network in the state, arranges or executes 28 vehicle rentals in the state, but whose primary business is not the rental of 29 vehicles; 30 (9) "vehicle rental network" means a digital network that connects 31 vehicle renters to personal vehicle owners; in this paragraph, "digital network"
01 means any online-enabled application, software, website, or system offered or 02 used by a vehicle rental network company that enables the prearrangement of 03 vehicle rentals with personal vehicle owners. 04 * Sec. 11. Sections 1 - 6 of this Act take effect January 1, 2023.