Enrolled SB 100: Relating to municipal liens; relating to service areas in second class boroughs; relating to a municipal tax exemption or deferral for economic development property; relating to a municipal tax exemption for a fire protection system; and providing for an effective date.
00Enrolled SB 100 01 Relating to municipal liens; relating to service areas in second class boroughs; relating to a 02 municipal tax exemption or deferral for economic development property; relating to a 03 municipal tax exemption for a fire protection system; and providing for an effective date. 04 _______________ 05 * Section 1. AS 09.45.169(2) is amended to read: 06 (2) "nonconsensual common law lien" means a lien on real or personal 07 property that 08 (A) is not provided for by a specific state or federal statute or 09 municipal ordinance; 10 (B) does not depend on the consent of the owner of the 11 property affected for its existence; and 12 (C) is not an equitable, constructive, or other lien imposed by a 13 court recognized under state or federal law;
01 * Sec. 2. AS 11.46.560(a) is amended to read: 02 (a) A person commits the crime of offering a false instrument for recording in 03 the second degree if 04 (1) under AS 40.17, the person presents a lien to the recorder for 05 registration, filing, or recording with reckless disregard that the lien is not 06 (A) provided for by a specific state or federal statute or 07 municipal ordinance; or 08 (B) a lien imposed or authorized by a court recognized under 09 state or federal law; 10 (2) under a law authorizing the receipt and filing of a document, the 11 person presents a lien to a department or person having responsibility to accept a lien 12 for filing with reckless disregard that the lien is not 13 (A) provided for by a specific state or federal statute or 14 municipal ordinance; or 15 (B) a lien imposed or authorized by a court recognized under 16 state or federal law; or 17 (3) the person presents to the recorder a notice of the pendency of an 18 action affecting title to real property or the right to possession of real property with 19 reckless disregard of the fact that the action specified does not concern the title to or 20 right to possession of the real property referred to in the notice, or with reckless 21 disregard of the fact that there is no pending action concerning the title to or right to 22 possession of the real property referred to in the notice. 23 * Sec. 3. AS 29.35.010 is amended to read: 24 Sec. 29.35.010. General powers. All municipalities have the following 25 general powers, subject to other provisions of law: 26 (1) to establish and prescribe a salary for an elected or appointed 27 municipal official or employee; 28 (2) to combine two or more appointive or administrative offices; 29 (3) to establish and prescribe the functions of a municipal department, 30 office, or agency; 31 (4) to require periodic and special reports from a municipal department
01 to be submitted through the mayor; 02 (5) to investigate an affair of the municipality and make inquiries into 03 the conduct of a municipal department; 04 (6) to levy a tax or special assessment, and impose a lien for its 05 enforcement; 06 (7) to enforce an ordinance and to prescribe a penalty for violation of 07 an ordinance; 08 (8) to acquire, manage, control, use, and dispose of real and personal 09 property, whether the property is situated inside or outside the municipal boundaries; 10 this power includes the power of a borough to expend, for any purpose authorized by 11 law, money received from the disposal of land in a service area established under 12 AS 29.35.450; 13 (9) to expend money for a community purpose, facility, or service for 14 the good of the municipality to the extent the municipality is otherwise authorized by 15 law to exercise the power necessary to accomplish the purpose or provide the facility 16 or service; 17 (10) to regulate the operation and use of a municipal right-of-way, 18 facility, or service; 19 (11) to borrow money and issue evidences of indebtedness; 20 (12) to acquire membership in an organization that promotes 21 legislation for the good of the municipality; 22 (13) to enter into an agreement, including an agreement for 23 cooperative or joint administration of any function or power with a municipality, the 24 state, or the United States; 25 (14) to sue and be sued; 26 (15) to provide facilities or services for the confinement and care of 27 prisoners and enter into agreements with the state, another municipality, or any person 28 relating to the confinement and care of prisoners; 29 (16) to receive grants from and contract with the Department of Public 30 Safety under AS 18.65.670; 31 (17) to provide by ordinance for the creation, recording, and
01 notice of a lien on real or personal property to secure payment of past due utility 02 fees, costs incurred by the municipality in the abatement of an unsafe or 03 dangerous building, and other fees and charges provided for by ordinance; 04 except as otherwise provided by state law, when recorded, a municipal lien under 05 this paragraph has priority over all other liens except 06 (A) liens for property taxes, special assessments, and sales 07 and use taxes; 08 (B) liens that were perfected before the recording of the lien 09 under this paragraph; 10 (C) liens that, under state law, are prior, paramount, and 11 superior to all other liens; and 12 (D) mechanics' and materialmen's liens for which claims of 13 lien under AS 34.35.070 or notices of right to lien under AS 34.35.064 have 14 been recorded before the recording of the lien under this paragraph. 15 * Sec. 4. AS 29.35.490 is amended by adding a new subsection to read: 16 (d) A second class borough may establish a service area for the provision of 17 emergency services within a state highway corridor if no voters reside in the service 18 area. A second class borough may provide emergency services in a service area 19 established under this subsection by ordinance. Notwithstanding any other provision 20 of law, a second class borough may not authorize or levy a property tax for the 21 provision of emergency services in a service area established under this subsection. 22 The boundaries of a service area established under this subsection may only include 23 the highway corridor and publicly owned property adjacent to the highway corridor 24 necessary to house emergency response equipment and personnel for the service area. 25 * Sec. 5. AS 29.45.050(m) is amended to read: 26 (m) A municipality may by ordinance partially or totally exempt all or some 27 types of economic development property from taxation for a designated period. 28 Except as otherwise provided by an ordinance enacted by the municipality before 29 January 1, 2017 [UP TO FIVE YEARS. THE MUNICIPALITY MAY PROVIDE 30 FOR RENEWAL OF THE EXEMPTION UNDER CONDITIONS ESTABLISHED 31 IN THE ORDINANCE. HOWEVER, UNDER A RENEWAL], a municipality that is
01 a school district may only exempt all or a portion of the amount of taxes that exceeds 02 the amount levied on other property for the school district's required local 03 contribution under AS 14.17.410(b)(2) [DISTRICT]. A municipality may by 04 ordinance permit deferral of payment of taxes on all or some types of economic 05 development property for a designated period. A municipality may not apply an 06 exemption or deferral under this subsection to taxes levied for special services in 07 a service area that is supervised by a board under AS 29.35.460 [UP TO FIVE 08 YEARS. THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE 09 DEFERRAL UNDER CONDITIONS ESTABLISHED IN THE ORDINANCE]. A 10 municipality may adopt an ordinance under this subsection only if, before it is 11 adopted, copies of the proposed ordinance made available at a public hearing on it 12 contain written notice that the ordinance, if adopted, may be repealed by the voters 13 through referendum. An ordinance adopted under this subsection must include specific 14 eligibility requirements and require a written application for each exemption or 15 deferral. In this subsection, "economic development property" means real or personal 16 property, including developed property conveyed under 43 U.S.C. 1601 et seq. 17 (Alaska Native Claims Settlement Act), [THAT] 18 (1) to which one or more of the following apply: 19 (A) the property has not previously been taxed as real or 20 personal property by the municipality; 21 (B) the property [(2)] is used in a trade or business in a way 22 that 23 (i) [(A)] creates employment in the municipality; 24 (ii) [(B)] generates sales outside of the municipality of 25 goods or services produced in the municipality; or 26 (iii) [(C)] materially reduces the importation of goods or 27 services from outside the municipality; 28 (C) an exemption or deferral on the property enables a 29 significant capital investment in physical infrastructure that 30 (i) expands the tax base of the municipality; and 31 (ii) will generate property tax revenue after the
01 exemption expires; or 02 (2) that [AND (3)] has not been used in the same trade or business in 03 another municipality for at least six months before the application for deferral or 04 exemption is filed; this paragraph does not apply if the property was used in the same 05 trade or business in an area that has been annexed to the municipality within six 06 months before the application for deferral or exemption is filed; this paragraph does 07 not apply to inventories. 08 * Sec. 6. AS 29.45.050 is amended by adding a new subsection to read: 09 (y) A municipality may by ordinance exempt from taxation up to two percent 10 of the assessed value of a structure if the structure contains a fire protection system 11 that is approved under AS 18.70.081, in operating condition, and incorporated as a 12 fixture or part of the structure. An exemption under this subsection is limited to an 13 amount that does not exceed two percent of the value of the structure based on the 14 assessment 15 (1) for 1981, if the fire protection system was a fixture of the structure 16 on January 1, 1981; or 17 (2) as of January 1 of the year immediately following the installation 18 of the fire protection system, if the fire protection system became a fixture of the 19 structure after January 1, 1981. 20 * Sec. 7. AS 34.35.950(d)(2) is amended to read: 21 (2) "nonconsensual common law lien" means a lien on real or personal 22 property that 23 (A) is not provided for by a specific state or federal statute or 24 municipal ordinance; 25 (B) does not depend on the consent of the owner of the 26 property affected for its existence; and 27 (C) is not an equitable, constructive, or other lien imposed by a 28 court recognized under state or federal law; 29 * Sec. 8. AS 29.45.030(l) is repealed. 30 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).