State house approves private car rental bill, moves to senate

    Juneau, Alaska (KINY) - The House passed legislation this week that aims to bring vehicle rental networks in line with the regulatory framework of Alaska’s car rental industry, relieve a regulatory burden on Alaskans, and helps the State to capture millions in lost revenue.

    A release from the House majority explains that vehicle rental networks are rental car businesses 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 statutes regulating car rental providers, and ensures those who rent through such networks are able to comply with those same laws and regulations, including Alaska’s Vehicle Rental Tax.

    Currently, Alaskans who rent out their cars using a vehicle rental network platform are required to remit 10% of their rental fees to the State to pay the Vehicle Rental Tax. Updating the statute transfers that burden to the companies facilitating the rental, relieving the car owner from having to collect and remit those tax dollars.

    “As technology rapidly changes to meet consumer needs, the state has to be equally as nimble to catch up with an evolving industry,” said Rep. Adam Wool, sponsor of the bill. “There are millions in lost revenue being left on the table, and by updating our statutes, we can ensure these new businesses pay their fair share, instead of the hardworking Alaskans looking to rent out their spare vehicles.”

    HB 90 next moves to the Senate for consideration.

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