Governor Sean Parnell today signed House Bill 56, legislation to eliminate the 10 percent tax on motorcycle rentals in the state of Alaska. Introduced by Representatives Lindsey Holmes and Tammie Wilson, HB 56 removes motorcycles from the motor vehicle rental tax which inadvertently included motorcycles when it was passed in 2003.
"Tourism is a main driver of Alaska's economy," Governor Parnell said. "This legislation is critical because it ensures these small and mid-sized businesses are able to grow and prosper. I commend Representatives Holmes and Wilson for introducing and seeing this legislation through."
"This bill is designed to help small Alaska businesses," Representative Holmes said. "Motorcycle travelers tend to go off the beaten path, traveling to remote bed and breakfasts, staying in smaller hotels and eating at local restaurants. By traveling this way, tourists end up paying local bed taxes and sales taxes. By boosting motorcycle rentals in the state, we grow our small businesses and tourism operators. More tourism means more money in Alaska's economy -- and that's why I am glad to see this bill become law."