Rental Vehicle Tax
Anchorage Municipal Code (AMC) Chapter 12.45 authorizes the collection of an 8% tax on the rental of motor vehicles. AMC 12.45 provides for a maximum tax to be collected per rental transaction. Generally speaking, the maximum tax for passenger cars is $120.00 ($1,500.00 of taxable fees and costs) while the maximum tax for trucks, vans and motorhomes is $240.00 ($3,000.00 of taxable fees and costs).
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AMC Chapter 12.45 and Ordinance Changes
AMC 12.45 (hyperlink) Note: The revisor of Ordinances publishes updates approximately three times per year. Ordinances passed since the last update are listed on the page opened by clicking the link above for AMC 12.45. To use the code, please click on the + to the left of Title 12 Taxation, then click on Chapter 12.45 Rental Tax on Rental of Motor Vehicles.
Assembly Ordinance (AO) 2020-55 is scheduled for introduction at the June 2, 2020 Assembly meeting. Public hearing and approval of this ordinance is scheduled for June 23, 2020. The proposed AO amends AMC 12.45 to remove the maximum tax collected on vehicle rentals and to establish duties and responsibilities of rental vehicle hosting platforms such as Turo and other similar operators.
Click on the following links to review each document:
AO 2020-55 (.pdf)
AM 298-2020 (.pdf)
Summary of Economic Effects (.pdf)
Application, Tax Return Form and Related Materials
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Fleet Management Issues
Info #1 Diplomatic Exemption (.pdf)
Info #2 Commissions and Collection Agency Fees (.pdf)
Info #3 “Fees & Costs” Includes Charges for the “Right to
Operate” a Motor Vehicle (.pdf)
Info #4 US Government Travel Cards (.pdf)
Info #5 Political Subdivisions of the State of Alaska (.pdf)
Info #6 Entities Exempt by Act of Congress (.pdf)
Info #7 Implementation of the Rental Tax on Retail Rental of
Info #8 Reporting Billing Adjustments and Correction of
Info #9 Tax on Long-Term Motor Vehicle Contracts (.pdf)
New! Info #10 State of Alaska Credit Cards (.pdf)
Info #12 Tax Treatment of a Loaner or Courtesy Vehicle Provided by a Dealer or Repair Shop (.pdf)
Info #13 On-line Marketplace Rental Vehicle Exchanges and Personal Vehicle Sharing Programs (.pdf)
- New! Info #14 University of Alaska Credit Card (.pdf)
Tools To Be Timely (.pdf)
Notices to Visitors
Credit Cards of Various Alaska School Districts and Alaska Local Governments
Treasury will issue a letter of determination to an Alaska school district or an Alaska local government entity after it has provided sufficient documentation to demonstrate that the entity's credit card qualifies as a direct payment pursuant to the definition of "paid direct" in AMC 12.45.010. The letter of determination will note that the rental(s) paid for with the specified credit card qualify for tax-exempt treatment. The representative of an Alaska school district or local government should provide a copy of this letter of determination to the rental vehicle agency when requesting tax-exempt status.
Alaska school districts and Alaska local government entities should contact Treasury if they wish to obtain a letter of determination.
Miscellaneous Lists and Reports