The state of Alaska wants to collect taxes from Turo, the online platform where people can advertise and rent their cars, after multiple legislative efforts and a trip to the courts have failed to resolve a long-running dispute.
Vehicles travel southbound on Gambell Street near E. 15th Avenue in Anchorage in August 2021.
The state has said that transactions made through Turo, and other peer-to-peer car rental websites, should incur the state’s 10% vehicle-rental tax, which has been imposed on sales by brick-and-mortar rental car agencies since 2003.it is not a car-rental firm that owns a fleet of vehicles, meaning it should not be liable for that tax.
The state Tax Division issued its subpoenas “for the express purpose” of securing information to determine if Turo was liable for state taxes, Menendez said. Because the subpoenas were unsuccessful, the judge said that he could not answer the underlying question in the case: whether Alaska’s rental-vehicle tax should apply to Turo.
For traditional rental car companies, levying state taxes on Turo is about fairness. Carrigan Grigsby, executive vice president of Avis Alaska — the state’s largest brick-and-mortar rental car company — said that hosting platforms should not get preferential treatment and effectively be allowed to charge lower fees for customers.
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