Legislature(2025 - 2026)BUTROVICH 205
04/10/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB138 | |
| SB152 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 138 | TELECONFERENCED | |
| += | SB 104 | TELECONFERENCED | |
| *+ | SB 152 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
April 10, 2025
1:42 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Bert Stedman
Senator Mike Shower
MEMBERS ABSENT
Senator Jesse Kiehl
COMMITTEE CALENDAR
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."
- MOVED CSSB 138(TRA) OUT OF COMMITTEE
SENATE BILL NO. 152
"An Act renaming Ruby Airport as Harold Esmailka Airport; and
providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 104
"An Act relating to the transfer of a title on the death of the
owner; and providing for an effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 138
SHORT TITLE: TAXATION: VEHICLE RENTALS, SUBPOENAS
SPONSOR(s): SENATOR(s) CLAMAN
03/19/25 (S) READ THE FIRST TIME - REFERRALS
03/19/25 (S) TRA, FIN
04/03/25 (S) TRA AT 1:30 PM BUTROVICH 205
04/03/25 (S) Heard & Held
04/03/25 (S) MINUTE(TRA)
04/10/25 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: SB 152
SHORT TITLE: HAROLD ESMAILKA AIRPORT AT RUBY
SPONSOR(s): SENATOR(s) CRONK
03/31/25 (S) READ THE FIRST TIME - REFERRALS
03/31/25 (S) TRA, STA
04/10/25 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
CARLY DENNIS, Staff
Senator Matt Claman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the explanation of changes from
vrsion A to N of SB 138.
NICOLE STEWART, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 138.
HALEY JOHNSTON, Executive Director
Alaska Trails
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 138.
TYNDALL ELLIS, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 138.
SENATOR MIKE CRONK, District R
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 152.
CHARLIE GREEN, Chief
Louden Tribal Council
Galena, Alaska
POSITION STATEMENT: Testified in support of SB 152.
ACTION NARRATIVE
1:42:00 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:42 p.m. Present at the call to
order were Senators Tobin, Stedman and Chair Bjorkman. Senator
Shower arrived thereafter.
SB 138-TAXATION: VEHICLE RENTALS, SUBPOENAS
1:42:52 PM
CHAIR BJORKMAN announced the consideration of 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."
1:43:01 PM
CHAIR BJORKMAN solicited a motion.
1:43:03 PM
SENATOR TOBIN moved to adopt the committee substitute (CS) for
SB 138, work order 34-LS0749\N, as the working document.
1:43:17 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:43:40 PM
CARLY DENNIS, Staff, Senator Matt Claman, Alaska State
Legislature, Juneau, Alaska, presented the explanation of
changes from version A to N of SB 138:
[Original punctuation provided.]
Senate Bill 138
Explanation of Changes
Version A to Version N
Section 2, AS 43.52.20
Page 1, Lines 12-14 and Page 2, Line 1
• Amends the vehicle rental tax from 10 percent to
9 percent for all vehicle rentals. Eliminates the
proposed tiered tax structure of 8 percent for
vehicle rental platforms and 10 percent for
traditional rentals.
1:44:22 PM
CHAIR BJORKMAN removed his objection. He found no further
objection and CSSB 138, work order 34-LS0749\N, was adopted as
the working document.
1:44:39 PM
CHAIR BJORKMAN thanked the sponsor and invited final comments.
1:44:44 PM
SENATOR CLAMAN thanked the committee for hearing SB 138.
1:45:09 PM
CHAIR BJORKMAN announced invited testimony on SB 138.
1:45:23 PM
NICOLE STEWART, representing self, Fairbanks, Alaska, expressed
disappointment that this issue was back before the legislature.
She noted that SB 138 is nearly identical to the legislation
that received legislative approval in 2024 and was supported by
stakeholders (including Turo). She questioned the governor's
reason for vetoing that legislation. She stated that there is no
discernable difference between the rental car service provided
by Turo and that of large national rental companies. She
asserted that taxes should be the same for all operators. She
expressed appreciation that SB 138 does not allow for
retroactive tax collection, which protects small operators. She
shared her understanding that, without passage of SB 138, the
state could require operators to pay back taxes. She encouraged
support of this legislation, as it would even the playing field
for all rental car operators and protect small business owners.
1:47:28 PM
HALEY JOHNSTON, Executive Director, Alaska Trails, Anchorage,
Alaska, briefly described the work done by Alaska Trails and
noted that much of that work is done in state parks. She noted
that Alaska's state parks receive many out-of-state visitors
each year. She surmised that many of those visitors drive rental
cars. Traditional rentals pay a rental car tax, while platform
rentals (e.g. Turo) do not. She explained that the vehicle
rental tax is split between Department of Transportation and
Public Facilities (DOTPF) and State Parks. This tax makes up a
large portion of the State Parks budget. She emphasized that
out-of-state visitors who utilize public lands - and who rent
their vehicles on platforms like Turo - are not paying a rental
car tax (and therefore are not paying into the State Parks
budget). She expressed support for the single tax rate for all
rental companies. She opined that disallowing the collection of
back taxes protects small business owners and is good common
sense. She reiterated support for SB 138, which she said would
allow Alaska Trails to continue elevating the condition of
trails and access to state lands.
1:49:20 PM
SENATOR SHOWER joined the meeting.
1:50:07 PM
CHAIR BJORKMAN concluded invited testimony.
1:50:15 PM
CHAIR BJORKMAN opened public testimony on CSSB 138.
1:50:47 PM
TYNDALL ELLIS, representing self, Anchorage, Alaska, testified
in support of SB 138. He said it is important to collect rental
car taxes, as this benefits Alaska's state parks. He stated that
within the state parks budget, funds from rental car taxes are
allocated to deferred maintenance and operations. He stated that
the deferred maintenance budget is over $90 million, and every
little bit helps to keep this under control.
1:52:12 PM
CHAIR BJORKMAN closed public testimony on SB 138.
1:52:24 PM
SENATOR SHOWER asked for confirmation of his understanding that
the revenue from SB 138 is not designated for State Parks and
would go into the unrestricted general fund (UGF).
1:53:27 PM
SENATOR CLAMAN clarified that, according to AS 43.52.080(b), the
funds collected would be deposited into a special vehicle rental
tax account within the general fund. This is not a designated
fund; however, it is identified in the general fund.
1:53:58 PM
SENATOR SHOWER stated that, although the funds are placed into a
vehicle tax account, there is no guarantee that those funds
would be used for State Parks. He said he wanted to be sure this
was clear.
1:54:04 PM
SENATOR STEDMAN shared his understanding of the constitutional
barriers to creating dedicated funds.
1:54:38 PM
SENATOR CLAMAN thanked the committee.
1:54:49 PM
CHAIR BJORKMAN solicited the will of the committee.
1:54:53 PM
SENATOR TOBIN moved to report CSSB 138, work order 34-LS0749\N,
from committee with individual recommendations and attached
fiscal note(s).
1:55:06 PM
CHAIR BJORKMAN found no objection and CSSB 138(TRA) was reported
from the Senate Transportation Standing Committee.
1:55:26 PM
At ease.
SB 152-HAROLD ESMAILKA AIRPORT AT RUBY
1:58:24 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 152 "An Act renaming Ruby
Airport as Harold Esmailka Airport; and providing for an
effective date."
1:58:43 PM
SENATOR MIKE CRONK, District R, Alaska State Legislature,
Juneau, Alaska, said SB 152 would honor Harold Esmailka by
renaming the Ruby Airport. He paraphrased from the article,
"Legends in Alaska Aviation: Harold Esmailka" by Brice Banning.
He highlighted many of Mr. Esmailka's accomplishments, including
the more than 50 years he was dedicated to serving his
community. Mr. Esmailka worked to provide aviation services
(including medivac flights) to roughly 80 villages over the
course of his career. He shared several anecdotes to illustrate
the importance of Mr. Esmailka's role in the community. He said
the proposal to rename the airport has received a significant
amount of support.
2:01:16 PM
CHAIR BJORKMAN announced invited testimony on SB 152.
2:01:23 PM
CHARLIE GREEN, Chief, Louden Tribal Council, Galena, Alaska,
said he is also on the Tanana Chiefs Conference (TCC) executive
board for the Yukon Koyukuk subregion. He emphasized the
importance of recognizing community leaders during their
lifetime. He pointed out that Mr. Esmailka is 96 years old. He
stated that Mr. Esmailka is a strong role model for leaders in
the subregion and a strong Native man. He shared that Mr.
Esmailka has broken the cycle of addiction and substance abuse
in all forms. He opined that this is one of the most important
accomplishments for Native men. He stated that Mr. Esmailka is a
strong role model for all Alaskans, but most profoundly for
Alaskan Native youth. He said it is a gift to honor those who
are most deserving, particularly now, when the world seems
chaotic and unstable. He briefly described Mr. Esmailka's
lifetime of work and emphasized the importance of this work to
the local community. He stated that Mr. Esmailka's commitment to
his community is reflected in his life's work. He asserted that
Mr. Esmailka deserves the honor of having the Ruby airport
dedicated in his name - and Alaskan Native people deserve to
hold a fellow Alaskan Native up with pride.
2:03:54 PM
CHAIR BJORKMAN held SB 152 in committee.
2:04:10 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 2:04 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 138 Ver N.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 138 |
| SB 138 - Explanation of Changes Version A to Version N.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 138 |
| SB 138 Supporting Document - Anchorage Municipality Vehicle Rental Tax Revenue.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 138 |
| SB152 ver A.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 152 |
| SB152 Sponsor Statement ver A.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 152 |
| SB152 Sectional Analysis ver A.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 152 |
| SB152 Support Document - Research Legends in Alaska Aviation 4.3.25.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 152 |
| SB 138 Legal Opinion on Statute of Limitations.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 138 |
| SB152-DOT-NRHA-04-04-2025.pdf |
STRA 4/10/2025 1:30:00 PM |
SB 152 |