05/16/2025 09:00 AM Senate FINANCE

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).