Budget & Taxes

SB 138 adjusts Alaska's passenger vehicle rental tax rates, imposing a 10% tax on traditional rentals (not arranged through a platform) and an 8% tax on rentals arranged through a vehicle rental platform (like apps or websites). It requires platforms with over 200 annual transactions to collect and pay the tax, provide tax records to the state, and exempts them from liability if they made reasonable efforts to obtain correct information from vehicle owners. The bill also prohibits the state from collecting taxes for platform rentals that occurred before the bill's effective date. This primarily affects rental companies and platforms meeting the transaction threshold, with no retroactive tax collection for prior platform transactions.

SB 113 would enact the Multistate Tax Compact into Alaska law, creating a standardized system for taxing businesses operating across multiple states. The bill directly affects multistate businesses, particularly highly digitized companies (such as online service providers), by changing how their income is apportioned for Alaska tax purposes. Key provisions include adopting the compact's rules to prevent double taxation and simplify tax filings for businesses operating in multiple jurisdictions. The bill also includes specific adjustments for highly digitized businesses under Alaska's Net Income Tax Act, aligning their tax treatment with the compact's framework.