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HB 264: "An Act allowing a deferral of municipal property taxes on the increase in the value of real property attributable to subdivision of that property; and providing for an effective date."

00                             HOUSE BILL NO. 264                                                                          
01 "An Act allowing a deferral of municipal property taxes on the increase in the value of                                 
02 real property attributable to subdivision of that property; and providing for an effective                              
03 date."                                                                                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 29.45 is amended by adding a new section to read:                                                  
06            Sec. 29.45.051. Tax deferral for certain subdivided property. (a) A                                        
07       municipality may by ordinance permit deferral of payment of taxes on all or a portion                             
08       of the increase in assessed value directly attributable to the subdivision of a single                            
09       parcel of property into three or more parcels.                                                                    
10            (b)  A deferral from taxation allowed under this (a) of this section shall be                                
11       limited to a maximum period of five years. However, a municipality may by ordinance                               
12       provide for termination of the deferral in less than five years for all or a portion of a                         
13       subdivided parcel, based on the date                                                                              
14                 (1)  all or a portion of the subdivided parcel is sold; or                                              
01                 (2)  the municipality grants a building permit for all or a portion of the                              
02       subdivided parcel.                                                                                                
03            (c)  A municipality may by ordinance provide a process for applying the tax                                  
04       deferral allowed under (a) of this section to an unsold portion of a subdivided parcel                            
05       after the date                                                                                                    
06                 (1)  a portion of the subdivided parcel is sold; or                                                     
07                 (2)  the municipality grants a building permit for a portion of the                                     
08       subdivided parcel.                                                                                                
09    * Sec. 2. This Act takes effect July 1, 2012.