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Vehicle Rental Tax
2018 Annual Report


Vehicle Rental Tax Reports





AS 43.60

Description

Alaska levies an excise tax on fees and costs charged for the rental or lease of a passenger or recreational vehicle if the rental or lease does not exceed 90 consecutive days.

The person working for the rental or leasing agency who provides the rental or leased vehicle collects the tax from the individual renting or leasing the vehicle. The rental or leasing agency in turn pays the tax to the Department of Revenue’s Tax Division.

Rate

For passenger vehicles, the rate is 10% of the total fees and costs for renting or leasing. For recreational vehicles, the rate is 3% of the total fees and costs for renting or leasing.

Returns

Taxpayers are required to file their tax returns electronically using Revenue Online.

Vehicle rental and leasing agencies file tax returns and make tax payments quarterly. The returns and payments are due the last day of the month following the end of the calendar quarter in which the rental or leasing agencies collected the tax.

Exemptions

Vehicle rental tax does not apply to:

  • Vehicle rentals or leases to federal, state, local or foreign government agencies or employees on official business.
  • Rental trucks with a gross vehicle weight rating greater than 8,500 pounds used for moving personal property. Rental trucks do not meet the “passenger vehicle” definition.
  • Vehicles provided to customers by automobile dealers as replacement transportation during warranty, recall or service contract repairs. Replacement transportation does not meet the “passenger vehicle” definition.
  • Taxicabs, which are excluded from the tax under AS 43.52.099. They do not meet the “passenger vehicle” definition.
  • Motorcycles and motor-driven cycles as defined by AS 28.90.990.

Exemption certificates are required for the following:

  • Rental trucks, as defined above.
  • Replacement vehicles, as defined above.

No exemption certificate is required for:

  • Taxicabs.

Disposition of Revenue

The Tax Division deposits all revenue from the vehicle rental tax into the General Fund. The Alaska Legislature may appropriate the funds in the vehicle rental tax account for tourism development and marketing.

History

2003 – The Legislature enacted the vehicle rental tax on Aug. 20, 2003. The tax became effective Jan. 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 Jan. 1, 2004. The Tax Division, therefore, refunded the vehicle rental tax collected or remitted for taxicab rentals between Jan. 1, 2004, and May 8, 2004.

2006 – The Legislature exempted trucks from the vehicle rental tax that were 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 Jan. 27, 2006.

2013 – The Legislature excluded motorcycles and motor-driven cycles as defined by AS 28.90.990 from the vehicle rental tax, effective May 10, 2013.

2014 – House Bill 193 (CH 74 SLA 14) added a new subsection to AS 43.52.080 allowing the Department of Revenue to share taxpayer information with a municipality relating to vehicle rental tax, as long as the municipality grants similar privileges to the Department of Revenue, it provides adequate safeguards for taxpayer confidentiality, and it uses the information for tax purposes. Then-Gov. Sean Parnell signed HB 193 in to law on July 10, 2014; it became effective Oct. 8, 2014.




Click here for data with additional years.

  Collections Summary

Fiscal Year

2018 2017 2016 2015

   Passenger Vehicle Rental

$10,003,018 $10,835,885 $9,820,725 $9,215,480

   Recreational Vehicle Rental

540,892 477,147 649,170 432,722

   Penalties and Interest

28,167 684,701 2,662 50,554
   Total Tax

$10,572,076

$11,997,733

$10,472,558

$9,698,755



  Filing Information

Fiscal Year

2018 2017 2016 2015

   Number of Returns

514 509 475 452

   Number of Taxpayers

142 128 123 114





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