SCS CSHB 411(CRA): "An Act relating to municipal economic development; relating to municipal tax exemptions and deferrals on economic development property; relating to economic development; and relating to a municipal tax exemption for certain farm structures."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 411(CRA) 01 "An Act relating to municipal economic development; relating to municipal tax 02 exemptions and deferrals on economic development property; relating to economic 03 development; and relating to a municipal tax exemption for certain farm structures." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 29.35.110(c) is amended to read: 06 (c) Notwithstanding (a) of this section, a borough that has entered into an 07 agreement with a city located in the borough to cooperatively or jointly provide for 08 economic development may use borough revenue from taxes or funding from other 09 sources [, WHETHER COLLECTED ON AN AREAWIDE OR NONAREAWIDE 10 BASIS,] to carry out the terms of the agreement. 11 * Sec. 2. AS 29.45.050(m) is amended to read: 12 (m) A municipality may by ordinance partially or totally exempt all or some 13 types of economic development property from taxation for a designated period. Except 14 as otherwise provided by an ordinance enacted by the municipality before January 1,
01 2017, a municipality that is a school district may only exempt all or a portion of the 02 amount of taxes that exceeds the amount levied on other property for the school 03 district's required local contribution under AS 14.17.410(b)(2). 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 a 07 service area that is supervised by an elected service area [A] board under 08 AS 29.35.460 unless the elected service area board objects to the exemption or 09 deferral by resolution adopted not later than 60 days after the effective date of 10 the municipal ordinance enacting the tax exemption or deferral. A municipality 11 may adopt an ordinance under this subsection only if, before it is adopted, copies of 12 the proposed ordinance made available at a public hearing on it contain written notice 13 that the ordinance, if adopted, may be repealed by the voters through referendum. An 14 ordinance adopted under this subsection must include specific eligibility requirements 15 and require a written application for each exemption or deferral. [IN THIS 16 SUBSECTION, "ECONOMIC DEVELOPMENT PROPERTY" MEANS REAL OR 17 PERSONAL PROPERTY, INCLUDING DEVELOPED PROPERTY CONVEYED 18 UNDER 43 U.S.C. 1601 ET SEQ. (ALASKA NATIVE CLAIMS SETTLEMENT 19 ACT), 20 (1) TO WHICH ONE OR MORE OF THE FOLLOWING APPLY: 21 (A) THE PROPERTY HAS NOT PREVIOUSLY BEEN 22 TAXED AS REAL OR PERSONAL PROPERTY BY THE MUNICIPALITY; 23 (B) THE PROPERTY IS USED IN A TRADE OR BUSINESS 24 IN A WAY THAT 25 (i) CREATES EMPLOYMENT IN THE 26 MUNICIPALITY; 27 (ii) GENERATES SALES OUTSIDE OF THE 28 MUNICIPALITY OF GOODS OR SERVICES PRODUCED IN THE 29 MUNICIPALITY; OR 30 (iii) MATERIALLY REDUCES THE IMPORTATION 31 OF GOODS OR SERVICES FROM OUTSIDE THE
01 MUNICIPALITY; 02 (C) AN EXEMPTION OR DEFERRAL ON THE PROPERTY 03 ENABLES A SIGNIFICANT CAPITAL INVESTMENT IN PHYSICAL 04 INFRASTRUCTURE THAT 05 (i) EXPANDS THE TAX BASE OF THE 06 MUNICIPALITY; AND 07 (ii) WILL GENERATE PROPERTY TAX REVENUE 08 AFTER THE EXEMPTION EXPIRES; OR 09 (2) THAT HAS NOT BEEN USED IN THE SAME TRADE OR 10 BUSINESS IN ANOTHER MUNICIPALITY FOR AT LEAST SIX MONTHS 11 BEFORE THE APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED; 12 THIS PARAGRAPH DOES NOT APPLY IF THE PROPERTY WAS USED IN THE 13 SAME TRADE OR BUSINESS IN AN AREA THAT HAS BEEN ANNEXED TO 14 THE MUNICIPALITY WITHIN SIX MONTHS BEFORE THE APPLICATION 15 FOR DEFERRAL OR EXEMPTION IS FILED; THIS PARAGRAPH DOES NOT 16 APPLY TO INVENTORIES.] 17 * Sec. 3. AS 29.71.800 is amended by adding a new paragraph to read: 18 (26) "economic development" means an action intended to result in an 19 outcome that causes an increase in, or avoids a decrease of, economic activity, gross 20 domestic product, or the tax base. 21 * Sec. 4. Section 2, ch. 66, SLA 2013, is repealed.