If Gov. Dunleavy was so opposed to SB 127 that he would veto it, why did his administration support its passage?
By Nicole StewartThe overflow parking lot for rental car companies is unusually empty at their airport location in Anchorage on Tuesday, May 4, 2021.
Senate Bill 127 cleaned up how we tax vehicle rentals in Alaska. Since 2006, all rental car owners have been required to collect a 10% sales tax from their renters. But the car-sharing websites and apps, such as Turo, have refused to collect the tax on behalf of their owners. Senate Bill 127 fixed the problem; it reduced the tax owed by Turo vehicle owners and protected them from back taxes.
And the bill made good sense. It accounted for the rapid growth in online vehicle rental platforms like Turo, where individual owners can rent out their cars via the car-sharing website or app. Since approval of the vehicle rental tax in 2006, these platforms have always been subject to the 10% tax on rental cars. But the Turo vehicle owners haven’t been collecting the tax from the renters, either because many didn’t know about it or because Turo refused to collect it for them.
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