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CSHB 264(CRA): "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                       CS FOR HOUSE BILL NO. 264(CRA)                                                                    
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                                                        
09                 (1)  the subdivision of a single parcel of property into three or more                                  
10       parcels; and                                                                                                      
11                 (2)  any improvements made to the property necessitated by its                                          
12       subdivision.                                                                                                      
13            (b)  A deferral from taxation allowed under this (a) of this section shall be                                
14       limited to a maximum period of five years. However, a municipality may by ordinance                               
01       provide for termination of the deferral in less than five years for all or a portion of a                         
02       subdivided parcel, based on the date on which                                                                     
03                 (1)  all or a portion of the subdivided parcel is sold; or                                              
04                 (2)  a residential or commercial building is constructed on the                                         
05       subdivided parcel.                                                                                                
06            (c)  A municipality may by ordinance provide a process for applying the tax                                  
07       deferral allowed under (a) of this section to an unsold portion of a subdivided parcel                            
08       after the date on which                                                                                           
09                 (1)  a portion of the subdivided parcel is sold; or                                                     
10                 (2)  a residential or commercial building is constructed on the                                         
11       subdivided parcel.                                                                                                
12    * Sec. 2. This Act takes effect July 1, 2012.