00                       CS FOR SENATE BILL NO. 4(FIN)                                                                    
01 "An Act relating to a mandatory exemption from municipal property taxes for certain                                     
02 residences and to an optional exemption from municipal taxes for residential property;                                  
03 and providing for an effective date."                                                                                   
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 29.45.030(e) is amended to read:                                                                  
06            (e)  The real property owned and occupied as the primary residence and                                       
07       permanent place of abode by a (1) resident 65 years of age or older; (2) disabled                                 
08       veteran; or (3) resident at least 60 years old who is the widow or widower of a person                            
09       who qualified for an exemption under (1) or (2) of this subsection [,] is exempt from                             
10       taxation on the first $150,000 of the assessed value of the real property.  A                                     
11       municipality may, in case of hardship, provide for exemption beyond the first                                     
12       $150,000 of assessed value in accordance with regulations of the department.  Only                                
13       one exemption may be granted for the same property and, if two or more persons are                                
14       eligible for an exemption for the same property, the parties shall decide between or                              

01       among themselves who is to receive the benefit of the exemption.  Real property may                               
02       not be exempted under this subsection if the assessor determines, after notice and                                
03       hearing to the parties, that the property was conveyed to the applicant primarily for the                         
04       purpose of obtaining the exemption.  The determination of the assessor may be                                     
05       appealed under AS 44.62.560 - 44.62.570.  A municipality may by ordinance                                     
06       provide that, if property is transferred during the year for which an exemption                               
07       has been granted under this subsection to a person who does not qualify for the                               
08       exemption, the  exemption ceases on the date of the transfer.  The municipality                               
09       shall calculate a pro rata share of the amount of taxes that would have been                                  
10       levied for the year on the property had it not been granted an exemption under                                
11       this subsection and shall notify the new owner of the additional amount of taxes.                             
12       Payment of the additional amount of taxes is due 60 days after the notice is                                  
13       provided to the new owner.                                                                                    
14    * Sec. 2.  AS 29.45.050(a) is amended to read:                                                                     
15            (a)  A municipality may exclude or exempt or partially exempt residential                                    
16       property from taxation by ordinance ratified by the voters at an election.  An                                
17       exclusion or exemption authorized by this subsection may not be applied with                                  
18       respect to taxes levied in a service area to fund the special services.  An exclusion                         
19       or exemption authorized by this subsection [SECTION] may not exceed the assessed                              
20       value of $10,000 for any one residence in a municipality with a level of total                                
21       bonded indebtedness that equals or exceeds $15,000 multiplied by the number of                                
22       residents in the municipality.  Otherwise, an exclusion or exemption authorized                               
23       by this subsection may not exceed the assessed value of $30,000 or 20 percent of                              
24       the assessed value, whichever is less, for any one residence.                                                 
25    * Sec. 3.  This Act takes effect January 1, 2002.