New Adam Wool tax on person-to-person car sharing passes House, but vote will be reconsidered

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A tax bill by House Rep. Adam Wool that would kill the business of person-to-person vehicle rentals in Alaska passed the House on Wednesday, but its transfer to the Senate was delayed for a move to reconsider. The tax proposal comes at time when lawmakers are also considering a tax holiday for motor fuels, and giving Alaskans $1,300 or more to help them with their bills during a time of high gas prices and out-of-control inflation.

With the proposed Wool car rental tax, Turo and other companies that provide digital platforms allowing people to rent out their personal vehicles would get taxed. If an Alaskan wanted to rent a pickup truck from a friend to haul firewood or hay, the state would take between 8-10 percent on the transaction.

Wool says his new tax will help the state capture millions of dollars in what he calls lost revenue.

House Bill 90 mandates that private vehicle rental networks are treated as traditional car rental companies.

“As technology rapidly changes to meet consumer needs, the state has to be equally as nimble to catch up with an evolving industry,” said Rep. Adam Wool, a Fairbanks Democrat. “There are millions in lost revenue being left on the table, and by updating our statutes, we can ensure these new businesses pay their fair share, instead of the hardworking Alaskans looking to rent out their spare vehicles.” 

But saying it is not a new tax does not make it a not a new tax. The people who rent the vehicles are the ones who will end up paying the tax, and the vast majority of person-to-person rentals in Alaska are to Alaskans, rather than visitors.

The assumption also is that the State Department of Revenue will try to collect back taxes from 2009 forward from everyone who has ever rented cars through a car-sharing app in Alaska.

Enterprise Rent a Car is pushing for this legislation.

Wool, whose aide is former Revenue Commissioner Ken Alper, didn’t have the votes at first glance on Wednesday, and the bill was headed back to Rules. At the last minute, Wool and his tax-promoting aide Alper were able to make some deals to get the votes. However, after the bill passed, Rep. Kevin McCabe called for reconsideration, delaying the matter.

23 COMMENTS

  1. Why not just say it openly Wool? We belong to you. We are allowed whatever crumbs you throw us.

    These vermin will go to any length to rob us

  2. “There are millions in lost revenue being left on the table”….

    And that right there is the problem with politicians, they think your money is actually theirs, and that you should be grateful if they condescend to graciously allow you to keep a fraction of it.
    This is how black market cash economies get started.

  3. More special interest legislation designed to benefit large corporations over Alaskans. Both Republicans and Democrats go to Juneau to screw Alaskans. FTA

  4. Well, gee, no, there must be some mistake! A Democrat siding with corporate interests over the interest of a small businessman! Say it ain’t so!

    How in the world could Fairbanks elect a guy like this? Oh, that’s right, Chena Hills and UAF.

    So, punish a small “business” owner, which is usually just a dude with an extra car, reward the corporate interests, and punish the consumer by killing an affordable option.

    Sounds Democrat all the way.

    • Wool was a bar keep. Ran up his prices on booze and sent drunk kids out on the highway at 4:00am. Complete effing nutjob with no scruples. Oh yeah, …..he’s a Democrat. Won by election fraud.

      • Yep, known for over-serving and being difficult with law enforcement. Yeah, he’s gaming the system again, I wonder how Enterprise and their ilk will reward him under the table.

  5. Can’t imagine anyone actually paying the Wooltax…
    .
    Should be any number of creative ways to defy, dodge, and defeat it.
    .
    And that’s before we get to jury nullification.

    • Fairbanks, University District. But general word around town is that he lost his race to Republican Kevin McKinley, as did Democrat Grier Hopkins. Both Dems were saved a week later by Hopkin’s brother-in-law Scott Kendall (Bill Walker’s campaign manager). Ballot stuffing and ballot harvesting around the University campus. Neither Wool nor Hopkins were legitimately elected…….and they know it.

  6. I see a photo of completely worthless idiots who have no clue about the real world.
    If I rent out a vehicle to anyone, it is for sure I’m pocketing ALL the money. None is going to the state to waste.

  7. Adam Wool, for gods sake pull your head out and try helping people for a change. You and all the democrats throughout the whole country have caused enough devastation to last several lifetimes! Open your beady friggin eyes!

  8. Car rental fees need to stay in Alaska, not sent to Turo in San Francisco. The person to person example provided does not appear to be included in the legislation as it does not require Turo.

    • Agreed, Julia. And his past was sending out thousands of drunk drivers from his pathetic bar and marijuana lounge on the most traveled Hiway in Alaska.

      • Wool had the Blue Loon Lounge, a bar for freaks and rappers. He even had Snoop Dog do a gig there once. Lots of drunks, especially unruly youngsters. Got em all loaded. But Wool made his money. Most expensive door cover in town. And now he wants to runup the cover on small businesses in the form of a tax. What a pos!

        • Snoop Dog? That must have cost Wool a bundle. I wonder if Wool paid Snoop in-kind with marijuana vouchers? Wool was known around town as a real tightwad.

  9. What a crock. I used to rent from Enterprise. In the first several years, they were a great company. Then I moved to Alaska, and the one here has been nothing but a nightmare money-grubber that usually doesn’t have any vehicles available or what they have is crap. Even though i had full coverage insurance on their vehicle because of my own insurance, they STILL wanted me to pay a cash deposit of $200 in case I brought it back with a ding or anything on it…even though I pointed out that my insurance would cover any dings and that $200 wouldn’t be enough to cover any kind of a “ding” anyway. Oh, and they would keep that $200 and credit it back to my credit card and that it depended on my bank on how long it would take before I got it back. I call BS. This is a way for them to show a ghost increase in their profits. I finally took care of the problem and bought a new vehicle.

  10. Another miserable Democrat who, during his campaign said he’d fight for us commoners. Way to go Wool! Just what we need, more taxes. Hey y’all – just wait till your miserable neighbors vote in Walker again. You ain’t seen nothing yet.

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