AK HB123

Reduces the passenger vehicle rental tax rate from 10% to 9% for traditional rentals not arranged through vehicle rental platforms, effective July 1, 2025

Establishes a lower 7% tax rate for vehicle rentals arranged through vehicle rental platforms (apps, websites, peer-to-peer services) from July 1, 2025 until July 1, 2028, when the rate increases to 9% for all rentals

Requires vehicle rental platforms with more than 200 transactions in Alaska in the preceding calendar year to collect and remit the rental tax quarterly to the Department of Revenue

Limits the Department of Revenue's authority to seek subpoena enforcement to Alaska superior courts only, removing the ability to use courts in other jurisdictions

Prohibits assessment or collection of vehicle rental taxes on platform transactions that occurred before the effective date if not already assessed, providing amnesty for prior platform-based rentals