HB 330: "An Act relating to the local property tax and municipal assistance fund; authorizing municipalities to use money from tax equalization entitlements and from the revenue sharing for the safe communities program to decrease real property taxes; and providing for an effective date."
00 HOUSE BILL NO. 330 01 "An Act relating to the local property tax and municipal assistance fund; authorizing 02 municipalities to use money from tax equalization entitlements and from the revenue 03 sharing for the safe communities program to decrease real property taxes; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 29.10.200 is amended by adding a new paragraph to read: 07 (64) AS 29.60.350(e) (safe communities program). 08 * Sec. 2. AS 29.60.050(a) is amended to read: 09 (a) An equalization entitlement or any portion of it may be used by a 10 municipality to reduce taxes on real property. Notwithstanding AS 29.45, an 11 equalization entitlement or any portion of it may be used by a municipality to 12 reduce taxes only on residential property in accordance with an ordinance 13 adopted by the municipality establishing the method to be used to reduce taxes 14 on residential property under this subsection. Otherwise, an [AN] equalization
01 entitlement generated by the tax levy of a taxing unit may be used only for authorized 02 expenditures of that taxing unit, but up to 15 percent of the payment of an equalization 03 entitlement generated by areawide revenue of a municipality may be used by the 04 municipality for areawide or nonareawide purposes at the discretion of its governing 05 body. This subsection applies to home rule and general law municipalities. 06 * Sec. 3. AS 29.60.350 is amended by adding a new subsection to read: 07 (e) Notwithstanding (c) of this section, money from the revenue sharing for 08 the safe communities program may be used by a municipality to reduce taxes on real 09 property. Notwithstanding AS 29.45, money from the revenue sharing for the safe 10 communities program may be used by a municipality to reduce taxes only on 11 residential property in accordance with an ordinance adopted by the municipality 12 establishing the method to be used to reduce taxes on residential property under this 13 subsection. This subsection applies to home rule and general law municipalities. 14 * Sec. 4. AS 37.05 is amended by adding a new section to article 6 to read: 15 Sec. 37.05.590. Local property tax and municipal assistance fund. (a) There 16 is created as a special account in the general fund the local property tax and municipal 17 assistance fund. The Department of Revenue shall manage the fund. Interest received 18 on money in the fund shall be accounted for separately and retained in the fund. 19 (b) After the end of each fiscal year during which the average West Coast 20 prevailing value for crude oil exceeded $30 a barrel, the Department of Revenue shall 21 transfer money from the general fund to the local property tax and municipal 22 assistance fund. The amount of the transfer equals the greater of 23 (1) $60,000,000; or 24 (2) the difference between what the state would have received during 25 the fiscal year just ended from the production tax under AS 43.55 on oil production, 26 the corporate income tax under AS 43.20 on business income of a taxpayer engaged in 27 the production of oil from a lease or property in the state or engaged in the 28 transportation of oil by pipeline in this state, property taxes under AS 43.56 on 29 property described in AS 43.56.210(5)(A) used or committed primarily in the 30 exploration for, production of, or pipeline transportation of unrefined oil, and oil 31 royalty payments under AS 38.05 had the average West Coast prevailing value for
01 crude oil during that fiscal year been $30 a barrel and the amount actually received by 02 the state from those sources. 03 (c) Appropriations may be made from the local property tax and municipal 04 assistance fund for state aid to municipalities and communities under AS 29.60.010 - 05 29.60.375 or for other purposes. Nothing in this section creates a dedicated fund. 06 * Sec. 5. This Act takes effect June 30, 2006.