HCS CSSB 77(CRA): "An Act relating to municipal property tax; and providing for an effective date."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 77(CRA) 01 "An Act relating to municipal property tax; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 29.45.050(m) is amended to read: 04 (m) A municipality may by ordinance partially or totally exempt all or some 05 types of economic development property from taxation for a designated period. 06 [EXCEPT AS OTHERWISE PROVIDED BY AN ORDINANCE ENACTED BY 07 THE MUNICIPALITY BEFORE JANUARY 1, 2017, A MUNICIPALITY THAT IS 08 A SCHOOL DISTRICT MAY ONLY EXEMPT ALL OR A PORTION OF THE 09 AMOUNT OF TAXES THAT EXCEEDS THE AMOUNT LEVIED ON OTHER 10 PROPERTY FOR THE SCHOOL DISTRICT'S REQUIRED LOCAL 11 CONTRIBUTION UNDER AS 14.17.410(b)(2).] A municipality may by ordinance 12 permit deferral of payment of taxes on all or some types of economic development 13 property for a designated period. A municipality may apply an exemption or deferral 14 under this subsection to taxes levied for special services in a service area that is 15 supervised by an elected service area board under AS 29.35.460 unless the elected 16 service area board objects to the exemption or deferral by resolution adopted not later
01 than 60 days after the effective date of the municipal ordinance enacting the tax 02 exemption or deferral. A municipality may adopt an ordinance under this subsection 03 only if, before it is adopted, copies of the proposed ordinance made available at a 04 public hearing on it contain written notice that the ordinance, if adopted, may be 05 repealed by the voters through referendum. An ordinance adopted under this 06 subsection must include specific eligibility requirements and require a written 07 application for each exemption or deferral. 08 * Sec. 2. AS 29.45 is amended by adding a new section to read: 09 Sec. 29.45.057. Levy of tax on blighted property. (a) A municipality may 10 levy a tax on real property that the municipality designates as blighted if, before 11 levying the tax, the municipality adopts an ordinance that establishes 12 (1) standards for determining whether a property is blighted; the 13 standards must include the following requirements: 14 (A) the condition of the property endangers public health and 15 safety; 16 (B) the property has been declared a public nuisance under a 17 local housing, building, plumbing, fire, or other related code or ordinance; 18 (C) the property has been vacant for not less than one year; 19 (D) the unsecured, vacant, or deteriorated state of the property 20 has caused it to become the subject or center of repeated illegal activity; or 21 (E) the property is 22 (i) open to the elements; 23 (ii) unfit for occupancy; or 24 (iii) a fire hazard; 25 (2) a procedure for designating a property as blighted that provides to 26 the property's owner notice of the proposed designation and an opportunity to 27 challenge the designation at a hearing; 28 (3) the tax rate, not to exceed 50 percent of the annual property tax 29 assessed on a property, that applies to a property designated as blighted; 30 (4) standards for remediating or redeveloping a property to remove the 31 property's designation as blighted; and
01 (5) a reduced tax rate, and the duration of time that the reduced tax rate 02 will apply, for a property that is undergoing remediation or redevelopment to remove 03 the property's designation as blighted. 04 (b) For the owner of a property designated as blighted to qualify for a reduced 05 tax rate established under (a)(5) of this section, the property owner must submit to the 06 municipality a plan for remediating or redeveloping the property, the municipality 07 must approve the plan, and the property owner must comply with the terms of the 08 plan. 09 (c) An ordinance adopted under (a) of this section may require tax collected 10 under this section to be segregated from other property tax and dedicated to 11 community redevelopment purposes. 12 (d) A municipality may not designate as blighted a property owner's primary 13 residence. 14 * Sec. 3. AS 29.45.560 is amended by adding a new subsection to read: 15 (b) Home rule and first class cities inside boroughs may levy a tax under 16 AS 29.45.057. 17 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).