00SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 397                                                                               
01 "An Act relating to the power to levy property taxes in second class cities and                                         
02 to combining a property tax and incorporation question."                                                                
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.45.010(b) is amended to read:                                                                    
05  (b)  A home rule, [OR] first class, or second class city may levy a property tax                                  
06 subject to AS 29.45.550 - 29.45.560.  [A SECOND CLASS CITY MAY LEVY A                                                   
07 PROPERTY TAX SUBJECT TO AS 29.45.590.]                                                                                  
08    * Sec. 2.  AS 29.45.550 is amended to read:                                                                          
09  Sec. 29.45.550.  CITIES OUTSIDE BOROUGHS.  Home rule, [AND] first                                                   
10 class, and second class cities outside boroughs may assess, levy, and collect a                                       
11 property tax.  A property tax if levied must be assessed, levied, and collected as                                      
12 provided by AS 29.45.010  - 29.45.500.                                                                                  
13    * Sec. 3.  AS 29.45.560 is amended to read:                                                                          
14  Sec. 29.45.560.  CITIES INSIDE BOROUGHS.  Home rule, [AND] first class,                                            

01 and second class cities inside boroughs may levy a property tax.  A property tax, if                                   
02 levied, is subject to AS 29.45.010 - 29.45.050, 29.45.090 - 29.45.100, 29.45.250,                                       
03 29.45.400 - 29.45.440 and 29.45.460 - 29.45.500.  The council shall by June 15 of                                       
04 each year present to the assembly a statement of the city's rate of levy unless a                                       
05 different date is agreed upon by the borough and city.                                                                  
06    * Sec. 4.  AS 44.85.410(3) is amended to read:                                                                       
07   (3)  "municipal bond" means a bond or note or evidence of debt that                                                  
08 constitutes                                                                                                             
09   (A)  a general obligation bond that is a direct and general                                                         
10 obligation of a political subdivision of the state, all the taxable property within                                     
11 which is subject to taxation to pay the bond, note, or evidence of debt, and the                                        
12 interest without limitation, as to rate or amount generally to the extent                                               
13 permitted by law [OR TO AVOID A DEFAULT AS PROVIDED FOR                                                                 
14 SECOND CLASS CITIES UNDER AS 29.45.590];                                                                                
15   (B)  a revenue bond, except a revenue bond for electrical                                                           
16 generation purposes other than diesel-powered generation, issued by a                                                   
17 municipality or a port authority that pledges the revenue of a                                                          
18 revenue-producing capital improvement and that is payable solely from the                                               
19 revenue of the revenue-producing capital improvement;                                                                   
20   (C)  a general obligation bond or revenue bond combined or                                                          
21 additionally secured;                                                                                                   
22   (D)  a bond of a borough issued as a general obligation of a                                                        
23 service area under AS 29.47.440 or former AS 29.58.340; or                                                              
24   (E)  an obligation of a municipality secured only by                                                                
25   (i)  special assessments on benefited property;                                                                    
26   (ii)  tax increments and a letter of credit or equal                                                               
27 security; or                                                                                                            
28   (iii)  a lease for equipment or building improvements if                                                           
29 the state is not a lessee;                                                                                              
30    * Sec. 5.  AS 29.45.590 and 29.45.600 are repealed.