Title 15 . Revenue

Chapter 52 . (Repealed)

Section 20. Exemptions from vehicle rental tax

15 AAC 52.020. Exemptions from vehicle rental tax

(a) For an exemption to be claimed under AS 43.52.090 , and at the time that the rental contract is executed, the lessor must

(1) complete a government use exemption certificate

(A) on a form prescribed by the department; or

(B) incorporated, directly or as an addendum, into the lessor's form contract, if the incorporated material is substantially the same as the contents of the form described in (A) of this paragraph;

(2) obtain, from the individual taking possession of the leased or rented vehicle,

(A) a signed declaration, made under penalty of perjury, that the individual has reviewed the certificate and that, to the best of the individual's knowledge, the certificate is true, correct, and complete; and

(B) proof of that individual's employment or official status, through the presentation of one or more of the following for examination by the lessor, except as provided in (c)(2)(B) of this section:

(i) a valid photo identification card issued by or on behalf of a government agency or of a federal instrumentality described in (c)(1) of this section;

(ii) the individual's business card, embossed with the seal of the government agency or federal instrumentality;

(iii) a document directly billing the lease or rental to the government agency or federal instrumentality, or to a credit card issued to the government agency or federal instrumentality;

(iv) a travel or purchase order issued by a government agency or federal instrumentality.

(b) The completed government use exemption certificate must identify the renter, identify the government agency, federal instrumentality, or foreign government, and identify the item presented under (a)(2)(B) of this section as proof of exempt status.

(c) The department will not apply the vehicle rental tax requirements of AS 43.52 and this chapter to a lease or rental

(1) for official use to a person that, under federal law, is immune from state taxation as an instrumentality of the federal government, including a federal credit union and the American Red Cross, if

(A) a government use exemption certificate is completed as required under (a) and (b) of this section; and

(B) the individual taking possession of the leased or rented vehicle presents proof of employment or official status as described in (a)(2)(B) of this section; or

(2) to a foreign government, if

(A) a government use exemption certificate is completed as required under (a) and (b) of this section; and

(B) the individual taking possession of the leased or rented vehicle presents a valid tax exemption card issued under 22 U.S.C. 4301 - 4316 by the United States Department of State; a renter who presents that card is not required to present the proof described in (a)(2)(B) of this section.

(d) If an individual executes a government use exemption certificate under (a) or (c)(1) of this section, and subsequently uses the vehicle for a period of time that is not authorized by the government agency or federal instrumentality for official use, the individual shall

(1) inform the lessor upon return of the vehicle; and

(2) pay any tax that is due on the difference between the total fees and costs for the lease or rental and the fees and costs authorized by the government agency or federal instrumentality.

(e) If an individual executes a government use exemption certificate for a lease or rental that is not exempt, and if the individual fails to inform the lessor upon the return of the vehicle and pay the tax, the individual shall file a return and remit the tax to the department.

History: Eff. 1/8/2004, Register 169

Authority: AS 43.05.080

AS 43.05.290

AS 43.52.040

AS 43.52.050

AS 43.52.080