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Legislature Lowers Rental Tax for Local Businesses

Saturday, April 13, 2013, Juneau, Alaska – The Alaska Legislature today unanimously passed a bill correcting the unintentional inclusion of motorcycles in a car rental tax bill passed in 2003.

House Bill 56 by Representative Lindsey Holmes, R-Anchorage, removes the 10 percent tax on motorcycle rentals, promoting the growth of Alaskan businesses.

“This bill is designed to help small Alaska businesses,” Holmes said. “Motorcycle travelers tend to go off the beaten path, traveling to remote bed and breakfasts, staying in smaller hotels and eating at local restaurants. By traveling this way, tourists end up paying local bed taxes and sales taxes.

“By boosting motorcycle rentals in the state, we grow our small businesses and tourism operators,” Holmes said. “More tourism means more money in Alaska’s economy – that’s why I’m proud to sponsor this bill.”

The bill amends current Alaska Statute by adding a motorcycle or a motor-driven cycle to the list of vehicles not included under the definition of passenger vehicles.

HB 56 passed the House March 5 and now goes to the Governor to be signed.

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