State House approves private car rental bill, moves to Senate

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Juneau, Alaska (KINY) – The House this week passed legislation to align vehicle rental networks with the regulatory framework for the Alaskan rental car industry, ease the regulatory burden on Alaskans, and help the state to capture millions in lost revenue.

A House Majority statement explains that vehicle rental networks are rental car companies that use a network of private personal vehicles to rent cars. House Bill 90 clarifies that private vehicle rental networks are required to comply with existing laws governing car rental providers and ensures that those who rent through these networks are able to comply with those same laws and regulations, including Alaska Vehicle Rental Tax.

Currently, Alaskans who rent their cars using a vehicle rental network platform are required to pay 10% of their rental fees to the state to pay the vehicle rental tax. The updated law shifts that burden to companies that facilitate leasing, saving the car owner from collecting and remitting those taxes.

“As technology rapidly evolves to meet consumer needs, the state must be equally nimble to catch up with an evolving industry,” said Rep. Adam Wool, sponsor of the bill. “There are millions in lost revenue that remain on the table, and by updating our bylaws, we can ensure that these new businesses pay their fair share, instead of hard-working Alaskans looking to lease their vehicles from replacement.”

HB 90 then goes to the Senate for review.

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