Enrolled SB 136: Relating to a mandatory property tax exemption for certain private property interests on military bases or installations; relating to an optional exclusion or exemption from municipal taxation for residential property; relating to an exemption from and deferral of municipal property taxes on certain types of deteriorated property; and providing for an effective date.
00Enrolled SB 136 01 Relating to a mandatory property tax exemption for certain private property interests on 02 military bases or installations; relating to an optional exclusion or exemption from municipal 03 taxation for residential property; relating to an exemption from and deferral of municipal 04 property taxes on certain types of deteriorated property; and providing for an effective date. 05 _______________ 06 * Section 1. AS 29.45.030(a) is amended to read: 07 (a) The following property is exempt from general taxation: 08 (1) municipal property, including property held by a public corporation 09 of a municipality, state property, property of the University of Alaska, or land that is 10 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 11 830, 70 Stat. 709, except that 12 (A) a private leasehold, contract, or other interest in the
01 property is taxable to the extent of the interest; however, an interest created by 02 a nonexclusive use agreement between the Alaska Industrial Development and 03 Export Authority and a user of an integrated transportation and port facility 04 owned by the authority and initially placed in service before January 1, 1999, 05 is taxable only to the extent of, and for the value associated with, those specific 06 improvements used for lodging purposes; 07 (B) notwithstanding any other provision of law, property 08 acquired by an agency, corporation, or other entity of the state through 09 foreclosure or deed in lieu of foreclosure and retained as an investment of a 10 state entity is taxable; this subparagraph does not apply to federal land granted 11 to the University of Alaska under AS 14.40.380 or 14.40.390, to other land 12 granted to the university by the state to replace land that had been granted 13 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 14 university under AS 14.40.365; 15 (C) an ownership interest of a municipality in real property 16 located outside the municipality acquired after December 31, 1990, is taxable 17 by another municipality; however, a borough may not tax an interest in real 18 property located in the borough and owned by a city in that borough; 19 (2) household furniture and personal effects of members of a 20 household; 21 (3) property used exclusively for nonprofit religious, charitable, 22 cemetery, hospital, or educational purposes; 23 (4) property of a nonbusiness organization composed entirely of 24 persons with 90 days or more of active service in the armed forces of the United States 25 whose conditions of service and separation were other than dishonorable, or the 26 property of an auxiliary of that organization; 27 (5) money on deposit; 28 (6) the real property of certain residents of the state to the extent and 29 subject to the conditions provided in (e) of this section; 30 (7) real property or an interest in real property that is exempt from 31 taxation under 43 U.S.C. 1620(d), as amended;
01 (8) property of a political subdivision, agency, corporation, or other 02 entity of the United States to the extent required by federal law; except that a private 03 leasehold, contract, or other interest in the property is taxable to the extent of that 04 interest unless the property is located on a military base or installation and the 05 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 06 Privatization Initiative), provided that the leaseholder enters into an agreement 07 to make a payment in lieu of taxes to the political subdivision that has taxing 08 authority; 09 (9) natural resources in place including coal, ore bodies, mineral 10 deposits, and other proven and unproven deposits of valuable materials laid down by 11 natural processes, unharvested aquatic plants and animals, and timber. 12 * Sec. 2. AS 29.45.050(a) is amended to read: 13 (a) A municipality may exclude or exempt or partially exempt residential 14 property from taxation by ordinance ratified by the voters at an election. An 15 exclusion or exemption authorized by this subsection may be applied with respect 16 to taxes levied in a service area to fund the special services. An exclusion or 17 exemption authorized by this subsection [SECTION] may not exceed the assessed 18 value of $20,000 [$10,000] for any one residence. 19 * Sec. 3. AS 29.45.050(o) is amended to read: 20 (o) A municipality may by ordinance partially or totally exempt all or some 21 types of deteriorated property from taxation for up to 10 [FIVE] years beginning on or 22 any time after the day substantial rehabilitation, renovation, demolition, removal, or 23 replacement of any structure on the property begins. A municipality may by 24 ordinance permit deferral of payment of taxes on all or some types of deteriorated 25 property for up to five years beginning on or any time after the day substantial 26 rehabilitation, renovation, demolition, removal or replacement of any structure on the 27 property begins. However, if the ownership of property for which a deferral has been 28 granted is transferred, all tax payments deferred under this subsection are immediately 29 due and the deferral ends, or, if ownership of any part of the property is transferred, all 30 tax payments are immediately due. The amount deferred each year is a lien on that 31 property for that year. Only one exemption and only one deferral may be granted to
01 the same property under this subsection, and, if an exemption and a deferral are 02 granted to the same property, both may not be in effect on the same portion of the 03 property during the same time. An ordinance adopted under this subsection must 04 include specific eligibility requirements and require a written application for each 05 exemption or deferral. In this subsection, "deteriorated property" means real property 06 that is commercial property not used for residential purposes or that is multi-unit 07 residential property with at least eight residential units, and that meets one of the 08 following requirements: 09 (1) within the last five years, has been the subject of an order by a 10 government agency requiring environmental remediation of the property or 11 requiring the property to be vacated, condemned, or demolished by reason of 12 noncompliance with laws, ordinances, or regulations; 13 (2) has a structure on it not less than 15 years of age that has 14 undergone substantial rehabilitation, renovation, demolition, removal, or 15 replacement, subject to any conditions prescribed in the ordinance; or 16 (3) is located in a deteriorating or deteriorated area with boundaries 17 that have been determined by the municipality. 18 * Sec. 4. The uncodified law of the State of Alaska enacted in sec. 2, ch. 8, SLA 1999, as 19 amended by sec. 1, ch. 102, SLA 2002, is amended to read: 20 Sec. 2. AS 29.45.050(o) is repealed July 1, 2010 [2006]. 21 * Sec. 5. Section 1 of this Act takes effect immediately under AS 01.10.070(c).