CSSB 148(CRA): "An Act exempting a certain gas pipeline with a design capacity of 500,000,000 or more cubic feet of gas a day from the state's oil and gas exploration, production, and pipeline transportation property taxes for a certain period of time; relating to the determination of full and true value for the purpose of determining the amount of required local contribution for public school funding; and providing for an effective date."
00 CS FOR SENATE BILL NO. 148(CRA) 01 "An Act exempting a certain gas pipeline with a design capacity of 500,000,000 or more 02 cubic feet of gas a day from the state's oil and gas exploration, production, and pipeline 03 transportation property taxes for a certain period of time; relating to the determination 04 of full and true value for the purpose of determining the amount of required local 05 contribution for public school funding; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.17.510(a) is amended to read: 08 (a) To determine the amount of required local contribution under 09 AS 14.17.410(b)(2) and to aid the department and the legislature in planning, the 10 Department of Commerce, Community, and Economic Development, in consultation 11 with the assessor for each district in a city or borough, shall determine the full and true 12 value of the taxable real and personal property in each district in a city or borough. If 13 there is no local assessor or current local assessment for a city or borough school
01 district, then the Department of Commerce, Community, and Economic Development 02 shall make the determination of full and true value guided by AS 29.45.110 and based 03 on a determination of full and true value made by the state assessor at least every two 04 years using the best information available, including on-site inspections made by the 05 state assessor in each of those districts at least once every four years. For purposes of 06 this subsection, the full and true value of taxable real and personal property in any area 07 detached shall be excluded from the determination of the full and true value of the 08 municipality from which the property was detached for the two years immediately 09 preceding the effective date of the detachment. Also, in making the determination for a 10 municipality that is a school district, or for a city that is within a borough school 11 district, the assessed value of property taxable under AS 43.56 shall be excluded if a 12 tax is not levied under AS 29.45.080 by the municipality that is the school district. The 13 determination of full and true value shall be made by October 1 and sent by certified 14 mail, return receipt requested, on or before that date to the president of the school 15 board in each city or borough school district. Duplicate copies shall be sent to the 16 commissioner. The governing body of a city or borough that is a school district may 17 obtain judicial review of the determination. The superior court may modify the 18 determination of the Department of Commerce, Community, and Economic 19 Development only upon a finding of abuse of discretion or upon a finding that there is 20 no substantial evidence to support the determination. In this subsection, "property 21 taxable under AS 43.56" has the meaning given to "taxable property taxable 22 under AS 43.56" in AS 29.45.080(e). 23 * Sec. 2. AS 14.17.510(a), as amended by sec. 1 of this Act, is amended to read: 24 (a) To determine the amount of required local contribution under 25 AS 14.17.410(b)(2) and to aid the department and the legislature in planning, the 26 Department of Commerce, Community, and Economic Development, in consultation 27 with the assessor for each district in a city or borough, shall determine the full and true 28 value of the taxable real and personal property in each district in a city or borough. If 29 there is no local assessor or current local assessment for a city or borough school 30 district, then the Department of Commerce, Community, and Economic Development 31 shall make the determination of full and true value guided by AS 29.45.110 and based
01 on a determination of full and true value made by the state assessor at least every two 02 years using the best information available, including on-site inspections made by the 03 state assessor in each of those districts at least once every four years. For purposes of 04 this subsection, the full and true value of taxable real and personal property in any area 05 detached shall be excluded from the determination of the full and true value of the 06 municipality from which the property was detached for the two years immediately 07 preceding the effective date of the detachment. Also, in making the determination for a 08 municipality that is a school district, or for a city that is within a borough school 09 district, the assessed value of property taxable under AS 43.56 shall be excluded if a 10 tax is not levied under AS 29.45.080 by the municipality that is the school district. The 11 determination of full and true value shall be made by October 1 and sent by certified 12 mail, return receipt requested, on or before that date to the president of the school 13 board in each city or borough school district. Duplicate copies shall be sent to the 14 commissioner. The governing body of a city or borough that is a school district may 15 obtain judicial review of the determination. The superior court may modify the 16 determination of the Department of Commerce, Community, and Economic 17 Development only upon a finding of abuse of discretion or upon a finding that there is 18 no substantial evidence to support the determination. [IN THIS SUBSECTION, 19 "PROPERTY TAXABLE UNDER AS 43.56" HAS THE MEANING GIVEN TO 20 "TAXABLE PROPERTY TAXABLE UNDER AS 43.56" IN AS 29.45.080(e).] 21 * Sec. 3. AS 29.45.080(e) is amended to read: 22 (e) For purposes of this section, 23 (1) population shall be determined by the commissioner based on the 24 latest statistics of the United States Bureau of the Census or on other reliable 25 population data, and the commissioner shall advise each municipality of its population 26 by January 15 of each year; 27 (2) "taxable property taxable under AS 43.56" includes real and 28 tangible personal property used or committed by contract or other agreement for 29 use in this state primarily in the pipeline transportation of gas that is exempt 30 under AS 43.56.020(d) from the tax imposed under AS 43.56. 31 * Sec. 4. AS 43.56.010(d) is amended to read:
01 (d) Except as provided in (e) of this section, a [A] tax paid to a municipality 02 under AS 29.45.080 before July 1 [OR FORMER AS 29.53.045 ON OR BEFORE 03 JUNE 30] of the tax year shall be credited against the tax levied under (a) of this 04 section for that tax year. Except as provided in (e) of this section, if [IF, 05 HOWEVER,] a tax is not paid to a municipality until after June 30 of the taxable year, 06 the department, upon application, shall refund to the taxpayer the amount of tax paid 07 to the municipality under AS 29.45.080 [OR FORMER AS 29.53.045]. The credit or 08 refund of taxes paid to a municipality may not exceed the total amount of tax levied by 09 the department upon the taxpayer for the tax year, under (a) of this section. 10 * Sec. 5. AS 43.56.010(d), as amended by sec. 4 of this Act, is amended to read: 11 (d) A [EXCEPT AS PROVIDED IN (e) OF THIS SECTION, A] tax paid to a 12 municipality under AS 29.45.080 before July 1 of the tax year shall be credited against 13 the tax levied under (a) of this section for that tax year. If [EXCEPT AS PROVIDED 14 IN (e) OF THIS SECTION, IF] a tax is not paid to a municipality until after June 30 of 15 the taxable year, the department, upon application, shall refund to the taxpayer the 16 amount of tax paid to the municipality under AS 29.45.080. The credit or refund of 17 taxes paid to a municipality may not exceed the total amount of tax levied by the 18 department upon the taxpayer for the tax year, under (a) of this section. 19 * Sec. 6. AS 43.56.010 is amended by adding a new subsection to read: 20 (e) Notwithstanding (d) of this section, a tax paid to a municipality under 21 AS 29.45.080 on property that is exempt under AS 43.56.020(d) from the tax imposed 22 under (a) of this section may not be credited against the tax levied under (a) of this 23 section and may not be refunded to a taxpayer under (d) of this section. 24 * Sec. 7. AS 43.56.020 is amended by adding new subsections to read: 25 (d) Real and tangible personal property used or committed by contract or other 26 agreement for use in this state primarily in the pipeline transportation of gas in a 27 pipeline with a design capacity of 500,000,000 or more cubic feet of gas a day to 28 market for sale is exempt from the tax imposed under AS 43.56.010(a). 29 (e) For property that is not used exclusively for or committed by contract or 30 other agreement to the gas pipeline described in (d) of this section, the department 31 shall determine that portion of the full and true value that
01 (1) is not exempt under (d) of this section; and 02 (2) is subject to tax under AS 43.56.010(a). 03 * Sec. 8. AS 43.56.060(a) is amended to read: 04 (a) The department shall assess property for the tax levied under 05 AS 43.56.010(b) and AS 29.45.080 on property used or committed by contract or 06 other agreement for use for the pipeline transportation of gas or unrefined oil or for the 07 production of gas or unrefined oil, including property that is exempt under 08 AS 43.56.020(d) from the tax imposed under AS 43.56.010(a), at its full and true 09 value as of January 1 of the assessment year. 10 * Sec. 9. AS 43.56.060(a), as amended by sec. 8 of this Act, is amended to read: 11 (a) The department shall assess property for the tax levied under 12 AS 43.56.010(b) and AS 29.45.080 on property used or committed by contract or 13 other agreement for use for the pipeline transportation of gas or unrefined oil or for the 14 production of gas or unrefined oil [, INCLUDING PROPERTY THAT IS EXEMPT 15 UNDER AS 43.56.020(d) FROM THE TAX IMPOSED UNDER AS 43.56.010(a),] at 16 its full and true value as of January 1 of the assessment year. 17 * Sec. 10. AS 43.56.070(a) is amended to read: 18 (a) The department may require by notice every person having ownership or 19 control of an interest in property taxable under this chapter or property that is 20 exempt under AS 43.56.020(d) from the tax imposed under AS 43.56.010(a) to 21 submit a return in the form prescribed by the department, based on property values 22 existing on January 1 of each year, except as otherwise provided in this chapter. 23 * Sec. 11. AS 43.56.070(a), as amended by sec. 10 of this Act, is amended to read: 24 (a) The department may require by notice every person having ownership or 25 control of an interest in property taxable under this chapter [OR PROPERTY THAT 26 IS EXEMPT UNDER AS 43.56.020(d) FROM THE TAX IMPOSED UNDER 27 AS 43.56.010(a)] to submit a return in the form prescribed by the department, based 28 on property values existing on January 1 of each year, except as otherwise provided in 29 this chapter. 30 * Sec. 12. AS 29.45.080(e)(2); AS 43.56.010(e), 43.56.020(d), and 43.56.020(e) are 31 repealed.
01 * Sec. 13. Sections 2, 5, 9, 11, and 12 of this Act take effect January 1, 2023.