HOUSE BILL NO. 90 "An Act relating to rental vehicles; relating to vehicle rental networks; relating to liability for vehicle rental taxes; and providing for an effective date." 9:25:16 AM Co-Chair Foster reported that the bill was previously heard on May 13, 2021. REPRESENTATIVE ADAM WOOL, SPONSOR, indicated that HB 90 applied the existing vehicle rental tax that Alaska already had in place to peer-to-peer network rentals like Turo. He reiterated that there was already a 10 percent tax on rental cars in the state that should be applied to the peer-to-peer rentals. However, the state did not enforce it. He detailed that the state had lacked the information to collect the tax and the Department of Revenue (DOR) asked Turo for a list of names of drivers and the company did not comply. The tax would apply to the person renting the car through the app and Turo would pay the tax to the state. He emphasized that similar to renting a car though a company like AVIS, the tax was paid by the person renting the car through the app and the owner of the car did not pay the tax. He noted that through the pandemic, Turo use soared due to the scarcity of rental cars. He guessed that the tax would raise several million dollars for the state. He analogized Airbnb that paid a bed tax, which was a similar premise as the peer-to-peer car rental networks. Co-Chair Foster reviewed the testifiers available online. Representative Wool also pointed out that the municipality of Anchorage in addition the states tax had its own municipal tax for vehicle rentals. Anchorage passed a law requiring the peer-to-peer networks to pay the city tax. 9:29:32 AM Representative Thompson reported that Recreational Vehicle (RV) rentals only required a 3 percent tax. He asked if Turo had engaged in any discussions regarding the disparity in the tax percentages or offered to compromise between 3 percent and 10 percent. Representative Wool relayed that the 3 percent tax RV was already in state law. He did not want to change existing statute. He commented that if someone rented an RV from Turo they would pay the 3 percent tax. He was uncertain why there were different rates for the different vehicles. He noted that the bill did not attempt to change the existing tax rates. The peer-to-peer tax rate would be the same as what existed in state law. He was merely wanting to apply the car rental tax to the peer-to-peer network model. Representative Thompson asked whether the municipality of Anchorage collected 3 percent on RV rentals. Representative Wool acknowledged that the Anchorage vehicle rental tax was 8 percent and did not know what the municipality did regarding taxing RV rentals. He reiterated that the state tax for RV rentals was 3 percent, and a brick and mortar RV rental agency was accountable for the tax. 9:33:03 AM Vice-Chair Ortiz asked if it was safe to say if the bill were to pass it would apply to all peer-to-peer vehicle rental networks. It would not be limited to Turo. Representative Wool answered in the affirmative. He noted that other peer-to-peer vehicle rental networks existed besides Turo. 9:33:55 AM Co-Chair Merrick declared a conflict of interest as her family rents out a car as a Turo vehicle. 9:34:35 AM AT EASE 9:35:12 AM RECONVENED Co-Chair Foster did not hear any objections to her conflict. 9:35:28 AM AT EASE 9:36:41 AM RECONVENED Co-Chair Foster asked for a motion to move the bill out of committee. Vice-Chair Ortiz requested an at ease. 9:36:41 AM AT EASE 9:37:35 AM RECONVENED Vice-Chair Ortiz MOVED to report HB 90 out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 90 was REPORTED out of committee with a "do pass" recommendation and with a new zero fiscal note by the Department of Administration and a new fiscal impact note by the Department of Revenue.