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).
Note: You will need Acrobat Reader to view .pdf documents, click here to download the latest version from Adobe.)
AMC Chapter 12.45 and Anchorage Ordinances
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. Ordinances may also be found on the Anchorage Assembly's web page. 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.
On April 22, 2014, the Anchorage Assembly approved and adopted Anchorage Ordinance (AO) 2014-42 as amended, amending Anchorage Municipal Code (AMC) Title 8, Penal Code. The amended Title 8 became effective June 22, 2014 and it contains a new section - AMC 8.15.060, Theft by failure to make required disposition of funds held or received. The following are sections of AMC Title 8 that are relevant to a person who collects rental vehicle taxes under AMC chapter 12.45.
8.15.060 Theft by failure to make required disposition of funds held or received (.pdf)
8.15.010 Theft defined; penalties (.pdf)
You can read the entire updated Title 8 as amended by AO 2014-42 by navigating to this link (hyperlink).
Anchorage Ordinance (AO) 2015-48
The Anchorage Assembly adopted AO 2015-48 on May 14, 2015. The ordinance amended AMC 12.45 to improve administrative effectiveness; clarify record retention requirements; clarify eligibility for refund of overpaid tax; clarify requirements and duties of certain persons; increase security and controls over municipal funds held by rental agencies and financial institutions; reference criminal sanctions for theft, misappropriation, or failure to remit monies held in trust by persons with fiduciary responsibilities to the municipality; and amending section 14.60.030 to remove chapter 12.45 offenses from the fine schedule.
If you have any questions or comments, you may contact us by one of the following methods.
For emails or faxes reference “ATTN: Self-Reported Taxes” in the subject line.
- FAX written feedback to (907) 343-6677
- E-mail written feedback to firstname.lastname@example.org
Mail written feedback to:
- Municipality of Anchorage
Treasury Division Self-Reported Taxes
P.O. Box 196650
Anchorage, AK 99519
In your communications, please list the section (e.g. 12.45.050D), page number and line number(s).
The document above also includes the Assembly Memorandum and Summary of Economic Effects.
Application, Tax Return Form and Related Materials
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)
- 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! 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