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