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SCS CSHB 146(CRA): "An Act relating to the optional exemption from and deferral of payment of municipal taxes on deteriorated property; and relating to a municipal tax exemption for certain subdivided property."

00                SENATE CS FOR CS FOR HOUSE BILL NO. 146(CRA)                                                             
01 "An Act relating to the optional exemption from and deferral of payment of municipal                                    
02 taxes on deteriorated property; and relating to a municipal tax exemption for certain                                   
03 subdivided property."                                                                                                   
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 29.45.050(o) is amended to read:                                                                   
06            (o)  A municipality may by ordinance partially or totally exempt all or some                                 
07       types of deteriorated property from taxation for up to 10 years beginning on or any                               
08       time after the day substantial rehabilitation, renovation, demolition, removal, or                                
09       replacement of any structure on the property begins. A municipality may by ordinance                              
10       permit deferral of payment of taxes on all or some types of deteriorated property for                             
11       up to five years beginning on or any time after the day substantial rehabilitation,                               
12       renovation, demolition, removal, or replacement of any structure on the property                                  
13       begins. However, if the entire ownership of property for which a deferral has been                                
14       granted is transferred, all tax payments deferred under this subsection are immediately                           
01       due, and the deferral ends. Otherwise, deferred tax payments become due as specified                              
02       by the municipality at the time the deferral is granted. The amount deferred each year                            
03       is a lien on that property for that year. Only one exemption and only one deferral may                            
04       be granted to the same property under this subsection, and, if an exemption and a                                 
05       deferral are granted to the same property, both may not be in effect on the same                                  
06       portion of the property during the same time. An ordinance adopted under this                                     
07       subsection must include specific eligibility requirements and require a written                                   
08       application for each exemption or deferral. An application for a deferral must specify                            
09       when payment of taxes for each year of deferral will become due, together with an                                 
10       explanation of the reasons for each proposed date for consideration by the                                        
11       municipality. In this subsection, "deteriorated property" means real property that,                           
12       either at the time of application for exemption or deferral or at the time of                                 
13       completion of the project for which an exemption or deferral is requested, is                                 
14                 (1)  residential property located in a deteriorating or deteriorated                                
15       area with boundaries that have been determined by the municipality, if the                                    
16       property is owned by an entity that owns at least two residential properties and                              
17       eight or more residential units among those properties in that deteriorating or                               
18       deteriorated area; or                                                                                         
19                 (2)  commercial property not used for residential purposes or that is                               
20       multi-unit residential property with at least eight residential units, and that meets one                         
21       of the following requirements:                                                                                    
22                      (A) [(1)]  within the last five years, has been the subject of an                              
23            order by a government agency requiring environmental remediation of the                                      
24            property or requiring the property to be vacated, condemned, or demolished by                                
25            reason of noncompliance with laws, ordinances, or regulations;                                               
26                      (B) [(2)]  has a structure on it not less than 15 years of age that                            
27            has not undergone substantial rehabilitation, renovation, demolition, removal,                           
28            or replacement, subject to any conditions prescribed in the ordinance; or                                    
29                      (C) [(3)]  is located in a deteriorating or deteriorated area with                             
30            boundaries that have been determined by the municipality.                                                    
31    * Sec. 2. AS 29.45.050 is amended by adding a new subsection to read:                                              
01            (x)  A municipality may by ordinance partially or wholly exempt from taxation                                
02       all or a portion of the increase in assessed value directly attributable to the subdivision                       
03       of a single parcel of property into three or more parcels and any improvements made                               
04       to the property necessitated by its subdivision. An ordinance adopted under this                                  
05       subsection may not provide for an exemption that exceeds five years in duration. A                                
06       municipality may also by ordinance provide that                                                                   
07                 (1)  the exemption is terminated when                                                                   
08                      (A)  a lot in the subdivision is sold; or                                                          
09                      (B)  a residential or commercial use is established on a lot in the                                
10            subdivision; or                                                                                              
11                 (2)  the exemption continues for the unsold lots in the subdivision after                               
12                      (A)  a lot in the subdivision is sold; or                                                          
13                      (B)  a residential or commercial use is established on a lot in the                                
14            subdivision.