SCS CSHB 10(FIN) am S(reengrossed): "An Act relating to mandatory exemptions from municipal property taxes for certain assets of the Alaska Industrial Development and Export Authority and for property owned by certain private colleges or universities; relating to optional exemptions from municipal property taxes for certain residential property; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 10(FIN) am S(reengrossed) 01 "An Act relating to mandatory exemptions from municipal property taxes for certain 02 assets of the Alaska Industrial Development and Export Authority and for property 03 owned by certain private colleges or universities; relating to optional exemptions from 04 municipal property taxes for certain residential property; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 29.45.030(a) is amended to read: 08 (a) The following property is exempt from general taxation: 09 (1) municipal property, including property held by a public corporation 10 of a municipality, state property, property of the University of Alaska, or land that is 11 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 12 830, 70 Stat. 709, except that 13 (A) a private leasehold, contract, or other interest in the 14 property is taxable to the extent of the interest; however, an interest created 15 by a nonexclusive use agreement between the Alaska Industrial
01 Development and Export Authority and a user of an integrated 02 transportation and port facility owned by the authority and initially 03 placed in service before January 1, 1999, is taxable only to the extent of, 04 and for the value associated with, those specific improvements used for 05 lodging purposes; 06 (B) notwithstanding any other provision of law, property 07 acquired by an agency, corporation, or other entity of the state through 08 foreclosure or deed in lieu of foreclosure and retained as an investment of a 09 state entity is taxable; this subparagraph does not apply to federal land granted 10 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 11 granted to the university by the state to replace land that had been granted 12 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 13 university under AS 14.40.365; 14 (C) an ownership interest of a municipality in real property 15 located outside the municipality acquired after December 31, 1990, is taxable 16 by another municipality; however, a borough may not tax an interest in real 17 property located in the borough and owned by a city in that borough; 18 (2) household furniture and personal effects of members of a 19 household; 20 (3) property used exclusively for nonprofit religious, charitable, 21 cemetery, hospital, or educational purposes; 22 (4) property of a nonbusiness organization composed entirely of 23 persons with 90 days or more of active service in the armed forces of the United States 24 whose conditions of service and separation were other than dishonorable, or the 25 property of an auxiliary of that organization; 26 (5) money on deposit; 27 (6) the real property of certain residents of the state to the extent and 28 subject to the conditions provided in (e) of this section; 29 (7) real property or an interest in real property that is exempt from 30 taxation under 43 U.S.C. 1620(d), as amended; 31 (8) property of a political subdivision, agency, corporation, or other
01 entity of the United States to the extent required by federal law; except that a private 02 leasehold, contract, or other interest in the property is taxable to the extent of that 03 interest unless the property is located on a military base or installation and the 04 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 05 Privatization Initiative), provided that the leaseholder enters into an agreement to 06 make a payment in lieu of taxes to the political subdivision that has taxing authority; 07 (9) natural resources in place including coal, ore bodies, mineral 08 deposits, and other proven and unproven deposits of valuable materials laid down by 09 natural processes, unharvested aquatic plants and animals, and timber; 10 (10) property not exempt under (3) of this subsection that 11 (A) is owned by a private, nonprofit college or university 12 that is accredited by a regional or national accrediting agency recognized 13 by the Council for Higher Education Accreditation or the United States 14 Department of Education, or both; and 15 (B) was subject to a private leasehold, contract, or other 16 private interest on January 1, 2010, except that a holder of a private 17 leasehold, contract, or other interest in the property shall be taxed to the 18 extent of that interest. 19 * Sec. 2. AS 29.45.030(a), as amended by sec. 1 of this Act, is amended to read: 20 (a) The following property is exempt from general taxation: 21 (1) municipal property, including property held by a public corporation 22 of a municipality, state property, property of the University of Alaska, or land that is 23 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 24 830, 70 Stat. 709, except that 25 (A) a private leasehold, contract, or other interest in the 26 property is taxable to the extent of the interest; [HOWEVER, AN INTEREST 27 CREATED BY A NONEXCLUSIVE USE AGREEMENT BETWEEN THE 28 ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 29 AND A USER OF AN INTEGRATED TRANSPORTATION AND PORT 30 FACILITY OWNED BY THE AUTHORITY AND INITIALLY PLACED IN 31 SERVICE BEFORE JANUARY 1, 1999, IS TAXABLE ONLY TO THE
01 EXTENT OF, AND FOR THE VALUE ASSOCIATED WITH, THOSE 02 SPECIFIC IMPROVEMENTS USED FOR LODGING PURPOSES;] 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 exempt from 27 taxation under 43 U.S.C. 1620(d), as amended; 28 (8) property of a political subdivision, agency, corporation, or other 29 entity of the United States to the extent required by federal law; except that a private 30 leasehold, contract, or other interest in the property is taxable to the extent of that 31 interest unless the property is located on a military base or installation and the
01 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 02 Privatization Initiative), provided that the leaseholder enters into an agreement to 03 make a payment in lieu of taxes to the political subdivision that has taxing authority; 04 (9) natural resources in place including coal, ore bodies, mineral 05 deposits, and other proven and unproven deposits of valuable materials laid down by 06 natural processes, unharvested aquatic plants and animals, and timber; 07 (10) property not exempt under (3) of this subsection that 08 (A) is owned by a private, nonprofit college or university that is 09 accredited by a regional or national accrediting agency recognized by the 10 Council for Higher Education Accreditation or the United States Department 11 of Education, or both; and 12 (B) was subject to a private leasehold, contract, or other private 13 interest on January 1, 2010, except that a holder of a private leasehold, 14 contract, or other interest in the property shall be taxed to the extent of that 15 interest. 16 * Sec. 3. AS 29.45.030(a), as amended by secs. 1 and 2 of this Act, is amended to read: 17 (a) The following property is exempt from general taxation: 18 (1) municipal property, including property held by a public corporation 19 of a municipality, state property, property of the University of Alaska, or land that is 20 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 21 830, 70 Stat. 709, except that 22 (A) a private leasehold, contract, or other interest in the 23 property is taxable to the extent of the interest; 24 (B) notwithstanding any other provision of law, property 25 acquired by an agency, corporation, or other entity of the state through 26 foreclosure or deed in lieu of foreclosure and retained as an investment of a 27 state entity is taxable; this subparagraph does not apply to federal land granted 28 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 29 granted to the university by the state to replace land that had been granted 30 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 31 university under AS 14.40.365;
01 (C) an ownership interest of a municipality in real property 02 located outside the municipality acquired after December 31, 1990, is taxable 03 by another municipality; however, a borough may not tax an interest in real 04 property located in the borough and owned by a city in that borough; 05 (2) household furniture and personal effects of members of a 06 household; 07 (3) property used exclusively for nonprofit religious, charitable, 08 cemetery, hospital, or educational purposes; 09 (4) property of a nonbusiness organization composed entirely of 10 persons with 90 days or more of active service in the armed forces of the United States 11 whose conditions of service and separation were other than dishonorable, or the 12 property of an auxiliary of that organization; 13 (5) money on deposit; 14 (6) the real property of certain residents of the state to the extent and 15 subject to the conditions provided in (e) of this section; 16 (7) real property or an interest in real property that is exempt from 17 taxation under 43 U.S.C. 1620(d), as amended; 18 (8) property of a political subdivision, agency, corporation, or other 19 entity of the United States to the extent required by federal law; except that a private 20 leasehold, contract, or other interest in the property is taxable to the extent of that 21 interest unless the property is located on a military base or installation and the 22 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 23 Privatization Initiative), provided that the leaseholder enters into an agreement to 24 make a payment in lieu of taxes to the political subdivision that has taxing authority; 25 (9) natural resources in place including coal, ore bodies, mineral 26 deposits, and other proven and unproven deposits of valuable materials laid down by 27 natural processes, unharvested aquatic plants and animals, and timber; 28 (10) property not exempt under (3) of this subsection that 29 [(A)] is owned by a private, nonprofit college or university that 30 is accredited by a regional or national accrediting agency recognized by the 31 Council for Higher Education Accreditation or the United States Department
01 of Education, or both, except that a private leasehold, contract, or other 02 interest in the property is taxable to the extent of the private interest [; 03 AND 04 (B) WAS SUBJECT TO A PRIVATE LEASEHOLD, 05 CONTRACT, OR OTHER PRIVATE INTEREST ON JANUARY 1, 2010, 06 EXCEPT THAT A HOLDER OF A PRIVATE LEASEHOLD, CONTRACT, 07 OR OTHER INTEREST IN THE PROPERTY SHALL BE TAXED TO THE 08 EXTENT OF THAT INTEREST]. 09 * Sec. 4. AS 29.45.030(e) is amended to read: 10 (e) The real property owned and occupied as the primary residence and 11 permanent place of abode by a [(1)] resident who is (1) 65 years of age or older; (2) a 12 disabled veteran; or (3) [RESIDENT] at least 60 years of age and [OLD WHO IS] the 13 widow or widower of a person who qualified for an exemption under (1) or (2) of this 14 subsection [,] is exempt from taxation on the first $150,000 of the assessed value of 15 the real property. A municipality may by ordinance approved by the voters grant 16 the exemption under this subsection to the widow or widower under 60 years of 17 age of a person who qualified for an exemption under (2) of this subsection. A 18 municipality may, in case of hardship, provide for exemption beyond the first 19 $150,000 of assessed value in accordance with regulations of the department. Only 20 one exemption may be granted for the same property and, if two or more persons are 21 eligible for an exemption for the same property, the parties shall decide between or 22 among themselves who is to receive the benefit of the exemption. Real property may 23 not be exempted under this subsection if the assessor determines, after notice and 24 hearing to the parties, that the property was conveyed to the applicant primarily for the 25 purpose of obtaining the exemption. The determination of the assessor may be 26 appealed under AS 44.62.560 - 44.62.570. 27 * Sec. 5. AS 29.45 is amended by adding a new section to read: 28 Sec. 29.45.053. Exemption for certain residences of law enforcement 29 officers. (a) A municipality may, by ordinance, provide for the designation of areas 30 within its boundaries that are eligible for tax exemptions on parcels of residential 31 property. The amount of the tax exemption provided in the ordinance may not exceed
01 $150,000 of the assessed value of a parcel. The exemption may be granted for a parcel 02 only if it is 03 (1) entirely within an eligible area; 04 (2) primarily used for residential purposes; and 05 (3) owned and occupied as the primary place of abode by a law 06 enforcement officer. 07 (b) Only one exemption may be granted for the same parcel under an 08 ordinance adopted under (a) of this section, and, if two or more individuals are eligible 09 for an exemption for the same parcel, the individuals shall decide between or among 10 themselves who is to receive the benefit of the exemption. 11 (c) The municipality that adopts the ordinance under (a) of this section may 12 not request state funds to cover any loss of revenue to the municipality caused by the 13 ordinance. 14 (d) The ordinance adopted under (a) of this section must define "law 15 enforcement officer" to include only some or all positions listed in the definition of 16 "peace officer" in AS 01.10.060 or in the definition of "police officer" in 17 AS 18.65.290. The ordinance may include other eligibility requirements for an area; 18 however, an eligible area must 19 (1) meet the eligibility requirements under a federal program of special 20 assistance for urban development, neighborhood revitalization, or law enforcement, 21 without regard to whether an application for the federal assistance on behalf of the 22 area has been made or whether the area has received or is receiving the federal 23 assistance; 24 (2) have a statistically higher occurrence of crime than the 25 municipality as a whole; the crime rate for an eligible area must be established in the 26 ordinance; or 27 (3) meet the requirements of (1) and (2) of this subsection. 28 (e) The municipality may establish a specific area as an eligible area for 29 purposes of this section only in the ordinance adopted under (a) of this section or by 30 adopting a separate ordinance. The municipality is not required to establish as an 31 eligible area for purposes of this section every area that meets the requirements of the
01 ordinance that is adopted under (a) of this section. 02 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 RETROACTIVITY. AS 29.45.030(a)(1)(A), as amended by sec. 1 of this Act, is 05 retroactive to November 30, 2009. 06 * Sec. 7. Sections 1 and 6 of this Act take effect immediately under AS 01.10.070(c). 07 * Sec. 8. Section 2 of this Act takes effect November 30, 2012. 08 * Sec. 9. Section 3 of this Act takes effect December 31, 2035.