SCS CSHB 347(CRA): "An Act relating to municipal property tax; relating to assessment of property, boards of equalization, and certification of assessors; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 347(CRA) 01 "An Act relating to municipal property tax; relating to assessment of property, boards 02 of equalization, and certification of assessors; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.050(m) is amended to read: 05 (m) A municipality may by ordinance partially or totally exempt all or some 06 types of economic development property from taxation for a designated period. 07 [EXCEPT AS OTHERWISE PROVIDED BY AN ORDINANCE ENACTED BY 08 THE MUNICIPALITY BEFORE JANUARY 1, 2017, A MUNICIPALITY THAT IS 09 A SCHOOL DISTRICT MAY ONLY EXEMPT ALL OR A PORTION OF THE 10 AMOUNT OF TAXES THAT EXCEEDS THE AMOUNT LEVIED ON OTHER 11 PROPERTY FOR THE SCHOOL DISTRICT'S REQUIRED LOCAL 12 CONTRIBUTION UNDER AS 14.17.410(b)(2).] A municipality may by ordinance 13 permit deferral of payment of taxes on all or some types of economic development 14 property for a designated period. A municipality may apply an exemption or deferral 15 under this subsection to taxes levied for special services in a service area that is
01 supervised by an elected service area board under AS 29.35.460 unless the elected 02 service area board objects to the exemption or deferral by resolution adopted not later 03 than 60 days after the effective date of the municipal ordinance enacting the tax 04 exemption or deferral. A municipality may adopt an ordinance under this subsection 05 only if, before it is adopted, copies of the proposed ordinance made available at a 06 public hearing on it contain written notice that the ordinance, if adopted, may be 07 repealed by the voters through referendum. An ordinance adopted under this 08 subsection must include specific eligibility requirements and require a written 09 application for each exemption or deferral. 10 * Sec. 2. AS 29.45 is amended by adding a new section to read: 11 Sec. 29.45.057. Levy of tax on blighted property. (a) A municipality may 12 levy a tax on real property that the municipality designates as blighted if, before 13 levying the tax, the municipality adopts an ordinance that establishes 14 (1) standards for determining whether a property is blighted; the 15 standards must specify that a property is blighted if at least one of the following 16 applies: 17 (A) the condition of the property endangers public health and 18 safety; 19 (B) the property has been declared a public nuisance under a 20 local housing, building, plumbing, fire, or other related code or ordinance; 21 (C) the unsecured, vacant, or deteriorated state of the property 22 has caused it to become the subject or center of repeated illegal activity; or 23 (D) the property has been vacant for not less than one year and 24 is 25 (i) open to the elements; 26 (ii) unfit for occupancy; or 27 (iii) a fire hazard; 28 (2) a procedure for designating a property as blighted that provides to 29 the property's owner notice of the proposed designation and an opportunity to 30 challenge the designation at a hearing; 31 (3) the tax rate, not to exceed 50 percent of the annual property tax
01 assessed on a property, that applies to a property designated as blighted; 02 (4) standards for remediating or redeveloping a property to remove the 03 property's designation as blighted; and 04 (5) a reduced tax rate, and the duration of time that the reduced tax rate 05 will apply, for a property that is undergoing remediation or redevelopment to remove 06 the property's designation as blighted. 07 (b) For the owner of a property designated as blighted to qualify for a reduced 08 tax rate established under (a)(5) of this section, the property owner must submit to the 09 municipality a plan for remediating or redeveloping the property, the municipality 10 must approve the plan, and the property owner must comply with the terms of the 11 plan. 12 (c) An ordinance adopted under (a) of this section may require tax collected 13 under this section to be segregated from other property tax and dedicated to 14 community redevelopment purposes. 15 (d) A municipality may not designate as blighted a property owner's primary 16 residence. 17 * Sec. 3. AS 29.45.110(a) is amended to read: 18 (a) The assessor shall assess property at its full and true value as of January 1 19 of the assessment year, except as provided in this section, AS 29.45.060, and 20 29.45.230. The full and true value is the estimated price that the property would bring 21 in an open market and under the then prevailing market conditions in a sale between a 22 willing seller and a willing buyer both conversant with the property and with 23 prevailing general price levels. The assessor shall determine the full and true value 24 as provided in standards adopted by the department under (e) of this section or 25 another set of standards provided by ordinance. 26 * Sec. 4. AS 29.45.110 is amended by adding a new subsection to read: 27 (e) The department shall adopt standards for assessing the full and true value 28 of property under (a) of this section that are not inconsistent with standards adopted by 29 the International Association of Assessing Officers and update the standards when 30 necessary. 31 * Sec. 5. AS 29.45 is amended by adding a new section to read:
01 Sec. 29.45.115. Assessor certification. A municipality may not employ an 02 assessor, including a private contractor, unless the assessor has a level 3 certification 03 or higher from the Alaska Association of Assessing Officers or works under the 04 supervision of an individual with a level 3 certification or higher from the Alaska 05 Association of Assessing Officers. 06 * Sec. 6. AS 29.45.180(a) is amended to read: 07 (a) A person receiving an assessment notice shall advise the assessor of errors 08 or omissions in the assessment of the person's property. If requested by the person, 09 the assessor or a person designated by the assessor shall meet with the person and 10 answer reasonable questions relating to the methods used to assess the person's 11 property. The meeting required under this subsection may be virtual or 12 telephonic. The assessor may correct errors or omissions in the roll before the board 13 of equalization hearing. 14 * Sec. 7. AS 29.45.200(a) is amended to read: 15 (a) The governing body shall appoint one or more boards [SITS AS A 16 BOARD] of equalization for the purpose of hearing an appeal from a determination of 17 the assessor [, OR IT MAY DELEGATE THIS AUTHORITY TO ONE OR MORE 18 BOARDS APPOINTED BY IT]. An appointed board shall [MAY] be composed of 19 not less than three persons, who shall be members of the governing body, municipal 20 residents, or a combination of members of the governing body and residents. The 21 governing body shall by ordinance establish the qualifications for membership. The 22 governing body may by ordinance appoint itself to sit as a board of equalization. 23 * Sec. 8. AS 29.45.210(b) is amended to read: 24 (b) The appellant bears the burden of proof. The only grounds for adjustment 25 of assessment are proof of unequal, excessive, improper, or under valuation based on 26 facts that are stated in a valid written appeal or proven at the appeal hearing. The [IF 27 A VALUATION IS FOUND TO BE TOO LOW, THE] board of equalization may not 28 raise the assessment in the current year unless requested to do so by the appellant. 29 If the appellant provides a long form fee appraisal to support the appellant's 30 valuation and the board of equalization does not find in favor of the appellant, 31 the board shall make specific findings on the record to support its decision.
01 * Sec. 9. AS 29.45.560 is amended by adding a new subsection to read: 02 (b) Home rule and first class cities inside boroughs may levy a tax under 03 AS 29.45.057. 04 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 07 Economic Development may adopt regulations necessary to implement the changes made by 08 this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 09 before the effective date of the law implemented by the regulation. 10 * Sec. 11. Sections 1, 2, 9, and 10 of this Act take effect immediately under 11 AS 01.10.070(c). 12 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect January 1, 2026.