Vehicle Rental Tax
2014 Annual Report


Vehicle Rental Tax Reports
End Year



AS 43.52
DESCRIPTION
Alaska levies an excise tax on fees and costs charged for the lease or rental of a passenger or recreational vehicle if the lease or rental does not exceed a period of 90 consecutive days. The tax is levied on individuals renting vehicles and is collected by the rental/lease agency.

RATE
Vehicle TypeRate (Fees & Costs)
Passenger10%
Recreational3%

RETURNS
Vehicle rental/lease agencies file tax returns and remit taxes quarterly. The returns and payments are due the last day of the month following the end of the calendar quarter in which the rental/lease agencies collected the tax.

EXEMPTIONS
Vehicle rental tax does not apply to:
  • rentals or leases to federal, state, local, or foreign government agencies or employees on official business
  • trucks with a gross vehicle weight rating greater than 8,500 pounds used for moving personal property and for vehicles provided to customers by automobile dealers as replacement transportation during warranty, recall or service contract repairs
  • taxi cabs are excluded from the tax under AS 43.52.099. Specifically, taxi cabs do not meet the definition of a "passenger vehicle."


There is no exemption certificate required for taxi cabs. Similarly, rental trucks and replacement transportation do not meet the “passenger vehicle” definition. However, there is an exemption certificate required for these transactions.

DISPOSITION OF REVENUE
The Division deposits all revenue from the vehicle rental tax into a special vehicle rental account in the General Fund. The legislature may appropriate the balance in the vehicle rental tax account for tourism development and marketing.

HISTORY

2003 - The legislature enacted the vehicle rental tax on August 20, 2003. The tax became effective January 1, 2004.

2004 - The legislature exempted the rental of taxicabs by taxicab drivers from the vehicle rental tax. Effective May 8, 2004 and retroactive to January 1, 2004, the Division refunded any tax collected or remitted for taxi cab rentals between January 1 and May 8, 2004.

2006 - The legislature exempted trucks rented by individuals for moving personal property and for vehicles provided to customers by automobile dealers as replacement transportation during warranty, recall or service contract repairs, effective January 27, 2006.

2013 - Effective May 10, 2013, the legislature excluded motorcycles and motor-driven cycles as defined by AS 28.90.990 from the tax.

2014 - HB 193 (CH 74 SLA 14) added a new subsection to AS 43.52.080 allowing the Department of Revenue to share taxpayer information with municipalities relating to vehicle rental tax as long as the municipality grants similar privileges to the department, provide adequate safeguards for taxpayer confidentiality and uses the information for tax purposes.



Click here for data with additional years.

  Collections Summary

Fiscal Year

2014 2013 2012 2011

   Passenger Vehicle Rental

$7,878,448 $8,002,079 $8,132,668 $7,836,341

   Recreational Vehicle Rental

396,337 360,782 359,002 339,191

   Penalties, Interest and Refunds

8,712 20,130 37,963 104,760

   Total Tax

$8,283,497

$8,382,991

$8,529,633

$8,280,292


  Filing Information

Fiscal Year

2014 2013 2012 2011

   Number of Returns

429 411 464 473

   Number of Taxpayers

123 116 118 114





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