Alaska Gov. Mike Dunleavy speaks to reporters during a news conference Wednesday, Feb. 7, 2024. (Photo by James Brooks/Alaska Beacon)
Alaska’s governor has vetoed a bill intended to clarify the rental car tax collection process for Alaskans who put up their vehicles for rent on Turo and similar car-sharing applications.
The Alaska Department of Revenue has said that Turo is subject to the state’s 10% sales tax on rental cars, but Turo has argued that users, not the company itself, is liable for collecting the tax.
The state unsuccessfully sued Turo six years ago in an attempt to find out how much tax revenue the state is owed. Since then, the state has occasionally garnished Turo proceeds from the bank accounts of Alaskans who rent their cars.
Senate Bill 127 , from Sen. Matt Claman, D-Anchorage, would have resolved the dispute by placing Turo in charge of collections and cutting the tax rate to 8% for Turo-like rentals.
That bill passed the House and Senate by wide, bipartisan margins, but the legislative consensus did not sway the governor.