HB 356: "An Act relating to an exemption from municipal property taxes for certain real property that is exempt from levy and collection of real property taxes when conveyed by the federal government to implement the Alaska Native Claims Settlement Act or when conveyed under a land exchange authorized by that Act involving land or an interest in land that is made exempt from local property taxes by that Act; and providing for an effective date."
00 HOUSE BILL NO. 356 01 "An Act relating to an exemption from municipal property taxes for certain real 02 property that is exempt from levy and collection of real property taxes when conveyed 03 by the federal government to implement the Alaska Native Claims Settlement Act or 04 when conveyed under a land exchange authorized by that Act involving land or an 05 interest in land that is made exempt from local property taxes by that Act; and 06 providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 29.45.030(a) is amended to read: 09 (a) The following property is exempt from general taxation: 10 (1) municipal property, including property held by a public corporation 11 of a municipality, state property, property of the University of Alaska, or land that is 12 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 13 830, 70 Stat. 709, except that
01 (A) a private leasehold, contract, or other interest in the 02 property is taxable to the extent of the interest; 03 (B) notwithstanding any other provision of law, property 04 acquired by an agency, corporation, or other entity of the state through 05 foreclosure or deed in lieu of foreclosure and retained as an investment of a 06 state entity is taxable; this subparagraph does not apply to federal land granted 07 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 08 granted to the university by the state to replace land that had been granted 09 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 10 university under AS 14.40.365; 11 (C) an ownership interest of a municipality in real property 12 located outside the municipality acquired after December 31, 1990, is taxable 13 by another municipality; however, a borough may not tax an interest in real 14 property located in the borough and owned by a city in that borough; 15 (2) household furniture and personal effects of members of a 16 household; 17 (3) property used exclusively for nonprofit religious, charitable, 18 cemetery, hospital, or educational purposes; 19 (4) property of a nonbusiness organization composed entirely of 20 persons with 90 days or more of active service in the armed forces of the United States 21 whose conditions of service and separation were other than dishonorable, or the 22 property of an auxiliary of that organization; 23 (5) money on deposit; 24 (6) the real property of certain residents of the state to the extent and 25 subject to the conditions provided in (e) of this section; 26 (7) real property or an interest in real property that is 27 (A) exempt from taxation under 43 U.S.C. 1620(d), as 28 amended or under 43 U.S.C. 1636(d), as amended; or 29 (B) acquired from a municipality in exchange for land that 30 is exempt from taxation under (A) of this paragraph, and is not developed 31 or made subject to a lease;
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 to 07 make a payment in lieu of taxes to the political subdivision that has taxing authority; 08 (9) natural resources in place including coal, ore bodies, mineral 09 deposits, and other proven and unproven deposits of valuable materials laid down by 10 natural processes, unharvested aquatic plants and animals, and timber. 11 * Sec. 2. AS 29.45.030(m) is amended to read: 12 (m) For the purpose of determining property exempt under (a)(7)(A) [(a)(7)] 13 of this section, the following definitions apply to terms used in 43 U.S.C. 1620(d) 14 unless superseded by applicable federal law, and for the purpose of determining 15 property exempt under (a)(7)(B) of this section the following definitions apply: 16 (1) "developed" means a purposeful modification of the property from 17 its original state that effectuates a condition of gainful and productive present use 18 without further substantial modification; surveying, construction of roads, providing 19 utilities or other similar actions normally considered to be component parts of the 20 development process, but that do not create the condition described in this paragraph, 21 do not constitute a developed state within the meaning of this paragraph; developed 22 property, in order to remove the exemption, must be developed for purposes other than 23 exploration, and be limited to the smallest practicable tract of the property actually 24 used in the developed state; 25 (2) "exploration" means the examination and investigation of 26 undeveloped land to determine the existence of subsurface nonrenewable resources; 27 (3) "lease" means a grant of primary possession entered into for 28 gainful purposes with a determinable fee remaining in the hands of the grantor; with 29 respect to a lease that conveys rights of exploration and development, this exemption 30 shall continue with respect to that portion of the leased tract that is used solely for the 31 purpose of exploration.