SB 158 am H: "An Act relating to the determination of full and true value of taxable municipal property for purposes of providing planning assistance to the Department of Education and Early Development and the legislature, calculating funding for education, calculating school district participating shares for school construction grants, and calculating tax resource equalization payments and excluding from that determination the value of property in certain areas detached from a municipality and the value of certain property involved with oil and gas that is not taxed by a municipality; and prohibiting the imposition of municipal sales and use taxes on state construction contracts and certain subcontracts; and providing for an effective date."
00 SENATE BILL NO. 158 am H 01 "An Act relating to the determination of full and true value of taxable municipal 02 property for purposes of providing planning assistance to the Department of Education 03 and Early Development and the legislature, calculating funding for education, 04 calculating school district participating shares for school construction grants, and 05 calculating tax resource equalization payments and excluding from that determination 06 the value of property in certain areas detached from a municipality and the value of 07 certain property involved with oil and gas that is not taxed by a municipality; and 08 prohibiting the imposition of municipal sales and use taxes on state construction 09 contracts and certain subcontracts; and providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 14.17.510(a) is amended to read: 12 (a) To determine the amount of required local contribution under
01 AS 14.17.410(b)(2) and to aid the department and the legislature in planning, the 02 Department of Commerce, Community, and Economic Development, in consultation 03 with the assessor for each district in a city or borough, shall determine the full and true 04 value of the taxable real and personal property in each district in a city or borough. If 05 there is no local assessor or current local assessment for a city or borough school 06 district, then the Department of Commerce, Community, and Economic Development 07 shall make the determination of full and true value from information available. In 08 making the determination, the Department of Commerce, Community, and Economic 09 Development shall be guided by AS 29.45.110. However, the full and true value of 10 taxable real and personal property in any area detached shall be excluded from 11 the determination of the full and true value of the municipality from which the 12 property was detached for the two years immediately preceding the effective date 13 of the detachment. Also, in making the determination for a municipality that is a 14 school district, or for a city that is within a borough school district, the assessed 15 value of property taxable under AS 43.56 shall be excluded if a tax is not levied 16 under AS 29.45.080 by the municipality that is the school district. The 17 determination of full and true value shall be made by October 1 and sent by certified 18 mail, return receipt requested, on or before that date to the president of the school 19 board in each city or borough school district. Duplicate copies shall be sent to the 20 commissioner. The governing body of a city or borough that is a school district may 21 obtain judicial review of the determination. The superior court may modify the 22 determination of the Department of Commerce, Community, and Economic 23 Development only upon a finding of abuse of discretion or upon a finding that there is 24 no substantial evidence to support the determination. 25 * Sec. 2. AS 29.10.200(51) is amended to read: 26 (51) AS 29.45.650(c), (d), (e), (f), (i), [AND] (j), and (k) (sales and 27 use tax); 28 * Sec. 3. AS 29.10.200(52) is amended to read: 29 (52) AS 29.45.700(d), [AND] (e), and (g) (sales and use tax); 30 * Sec. 4. AS 29.45.650 is amended by adding a new subsection to read: 31 (k) A borough may not levy or collect a sales or use tax on a construction
01 contract awarded by the state or a state agency, or on a subcontract awarded in 02 connection with the project funded under the construction contract. This subsection 03 applies to home rule and general law municipalities. 04 * Sec. 5. AS 29.45.700 is amended by adding a new subsection to read: 05 (g) A city may not levy or collect a sales or use tax on a construction contract 06 awarded by the state or a state agency, or on a subcontract awarded in connection with 07 the project funded under the construction contract. This subsection applies to home 08 rule and general law cities. 09 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).