JUNEAU, Alaska -- Alaska's state legislators last month approved a bill calling for a 10% car rental tax. Now before Governor Frank Murkowski, the bill exempts government rentals.

The proposed tax hike, introduced by House Speaker Pete Kott, cleared the state House on May 19. The Senate approved the tax two days later before adjourning its session.

Kott's bill originally called for a 15% car rental tax.

The city of Anchorage already has an 8% car rental tax. If the bill becomes law, car rental taxes at Ted Stevens International Airport in Anchorage would jump from 18% to 33%.