HB 86: "An Act relating to municipal property taxes."
00HOUSE BILL NO. 86 01 "An Act relating to municipal property taxes." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 29.45.050(b) is amended to read: 04 (b) A municipality may by ordinance 05 (1) classify boats and vessels for the purposes of taxation and may 06 establish the assessed valuation of boats and vessels on the basis of their registered or 07 certificated net tonnage; 08 (2) classify and exempt from taxation 09 (A) the property of an organization not organized for business 10 or profit-making purposes and used exclusively for community purposes if the 11 income derived from rental of that property does not exceed the actual cost to 12 the owner of the use by the renter; 13 (B) historic sites, buildings, and monuments; 14 (C) land of a nonprofit organization used for agricultural
01 purposes if rights to subdivide the land are conveyed to the state and the 02 conveyance includes a covenant restricting use of the land to agricultural 03 purposes only; rights conveyed to the state under this subparagraph may be 04 conveyed by the state only in accordance with AS 38.05.069(c); 05 (D) all or any portion of private ownership interests in property 06 that, based upon a written agreement with the University of Alaska, is used 07 exclusively for student housing for the University of Alaska; property may be 08 exempted from taxation under this subparagraph for no longer than 30 years 09 unless the exemption is specifically extended by ordinance adopted within the 10 six months before the expiration of that period; 11 (3) classify as to type and exempt or partially exempt some or all 12 types of personal property from ad valorem taxes [TAXATION; 13 (4) EXEMPT BUSINESS INVENTORIES FROM TAXATION; 14 (5) CLASSIFY AS TO TYPE AND EXEMPT OR PARTIALLY 15 EXEMPT ANY OR ALL TYPES OF MOTOR VEHICLES FROM TAXATION; 16 (6) CLASSIFY AS TO TYPE AND EXEMPT OR PARTIALLY 17 EXEMPT ANY OR ALL TYPES OF AIRCRAFT FROM TAXATION; 18 (7) EXEMPT OR PARTIALLY EXEMPT FROM TAXATION ALL 19 BOATS AND VESSELS THAT ARE NOT DOCUMENTED UNDER THE LAWS 20 OF THE UNITED STATES; 21 (8) EXEMPT OR PARTIALLY EXEMPT FROM TAXATION ALL 22 PICKUP CAMPERS, SHELLS, AND CANOPIES; 23 (9) EXEMPT OR PARTIALLY EXEMPT FROM TAXATION ALL 24 UNLICENSED MOTORIZED ALL-TERRAIN VEHICLES, SNOW MACHINES, 25 AND TRAIL BIKES]. 26 * Sec. 2. AS 29.45 is amended by adding a new section to read: 27 Sec. 29.45.055. LEVY OF FLAT TAX ON PERSONAL PROPERTY. (a) 28 A municipality may by ordinance levy a flat tax on personal property that has been 29 totally exempted from ad valorem taxes under AS 29.45.050(b). A municipality that 30 levies a flat tax may classify the property as to type based on any characteristic and 31 tax each item of property of the same type at a specific amount. A flat tax may be
01 levied on all or on only some types of personal property. The flat tax ordinance must 02 include a procedure under which the taxpayer may appeal the determination of 03 ownership or classification of property subject to the tax. The municipality may 04 establish procedures necessary to collect the tax. 05 (b) Except as provided in (a) of this section, adoption of a flat tax does not 06 affect the authority of a municipality to levy other taxes or impose fees on the same 07 or other personal property or on the use, possession, sale, or lease of the same or other 08 personal property. 09 * Sec. 3. AS 29.45.090(a) is amended to read: 10 (a) A municipality may not, during a year, levy an ad valorem [AND] tax for 11 any purpose in excess of three percent of the assessed value of property in the 12 municipality. All property on which an ad valorem [A] tax is levied shall be taxed 13 at the same rate during the year. 14 * Sec. 4. AS 29.45.120(a) is amended to read: 15 (a) The municipality may require each person having ownership or control 16 of or an interest in property to submit a return in the form prescribed by the assessor, 17 based on property owned and property values existing on January 1, except as 18 otherwise provided in this chapter. 19 * Sec. 5. AS 29.45.130(a) is amended to read: 20 (a) The assessor is not bound to accept a return as correct. The assessor may 21 make an independent investigation of property returned or of taxable property on 22 which no return has been filed. In either case, the assessor may make the assessor's 23 own valuation of the [TAXABLE] property subject to an ad valorem tax and this 24 valuation is prima facie evidence of the value of the property. 25 * Sec. 6. AS 29.45.160(a) is amended to read 26 (a) The assessor shall prepare an annual assessment roll. The roll must contain 27 (1) a description of all [TAXABLE] property subject to an ad 28 valorem tax; 29 (2) the assessed value of all [TAXABLE] property subject to an ad 30 valorem tax; 31 (3) the names and addresses of persons with property subject to an ad
01 valorem tax [ASSESSMENT AND TAXATION]. 02 * Sec. 7. AS 29.45.170(a) is amended to read: 03 (a) The assessor shall give each person named in the assessment roll a notice 04 of assessment [,] showing the assessed value of the person's property that is subject 05 to an ad valorem tax. On each notice is printed a brief summary of the dates when 06 taxes are payable, delinquent, and subject to penalty and interest, and the dates when 07 the board of equalization will sit. 08 * Sec. 8. AS 29.45.590 is amended to read: 09 Sec. 29.45.590. LIMITED PROPERTY TAXING POWER FOR SECOND 10 CLASS CITIES. A second class city may by referendum levy property taxes as 11 provided for first class cities. However, levy of an ad valorem tax by a second class 12 city may not exceed two percent of the assessed value of the property taxed, except 13 that the limit does not apply to a levy necessary to avoid a default upon payment of 14 principal and interest of bonded or other indebtedness that is secured by a pledge to 15 levy ad valorem or other taxes without limit to meet debt payments.