An Act relating to vehicle rental taxes; relating to the issuance of subpoenas related to tax records; and providing for an effective date.

HB 123 adjusts Alaska's passenger vehicle rental tax rates, imposing a 9% tax on traditional rentals (not arranged through a platform) and a 7% tax on rentals arranged through a vehicle rental platform. It requires platforms handling over 200 annual transactions to collect and pay the tax, provide related records to the Department of Revenue, and specifies platforms aren't liable for tax collection failures if they made reasonable efforts to obtain accurate information from vehicle providers. The bill also clarifies that the Department of Revenue can seek court orders to compel compliance with subpoenas for tax records, strengthening enforcement mechanisms.