00                             HOUSE BILL NO. 156                                                                          
01 "An Act relating to municipal debt for development and redevelopment projects."                                         
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 29.47.460(b) is amended to read:                                                                  
04            (b)  A municipality may provide by ordinance that the tax increment from the                                 
05       taxes levied each year by or on behalf of the municipality on the property in an area                             
06       described in the ordinance shall be used to repay the principal and interest on bonds,                            
07       notes, or other indebtedness that is incurred for a development or redevelopment                                  
08       project, and may irrevocably pledge the tax increment from the area for that purpose                              
09       [BUT ONLY IF ADDITIONAL SECURITY IN THE FORM OF A LETTER OF                                                       
10       CREDIT OR EQUAL SECURITY IS ALSO PLEDGED].  The area described in the                                             
11       ordinance may be a service area.  In this subsection "tax increment" means the portion                            
12       of the tax that is attributable to the difference between the value of the property shown                         
13       on the taxing agency's assessment roll for the year when the taxes are levied and the                             
14       value of the property shown on the taxing agency's last assessment roll that was                                  
15       equalized before the project was authorized.