Legislature(1993 - 1994)
1993-01-15 House JournalFull Journal pdf
1993-01-15 House Journal Page 0084 HB 66 HOUSE BILL NO. 66 by the House Rules Committee by request of the Governor, entitled: "An Act relating to municipal property tax exemptions for certain residences and to property tax equivalency payments for certain residents; and providing for an effective date." was read the first time and referred to the Community & Regional Affairs, Health, Education & Social Services and Finance Committees. The following fiscal notes apply: Zero fiscal notes (2), Dept. of Community & Regional Affairs, 1/15/93 Zero fiscal note, Dept. of Administration, 1/15/93 The Governor's transmittal letter, dated January 15, 1993, appears below: 1993-01-15 House Journal Page 0085 HB 66 "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to the mandatory and optional property tax exemptions for residences of senior citizens, disabled veterans and their widow or widowers, and to property tax equivalency payments for certain residents. The bill provides for municipalities to offer tax exemptions to these people and repeals the mandatory property tax exemption. The bill also repeals the provision for state reimbursement to municipalities for property tax revenue lost to the municipality by operation of the mandatory tax exemptions. Also, the bill repeals the provision for a property tax equivalency payment from the state to persons who rent a residence but would otherwise qualify for a mandatory tax exemption (the "renter's rebate" program). Finally, the bill has a retroactive effective date to January 1, 1993. Due to declining state revenue, it has become apparent over the past several years that the state can no longer afford to fully pay for the municipal reimbursement program for the mandatory senior citizen or disabled veteran property tax exemptions. As a result, municipalities have not been reimbursed in full for the tax revenue lost due to the mandatory property tax exemptions. This bill will allow municipalities to decide whether they wish to exempt such property from taxation in whole or in part. If they choose to exempt the property, they will, of course, lose tax revenue, but that decision will be up to the individual municipality and will not be mandated by the state. Also, again due to declining state revenue, the state has not fully funded the "renter's rebate" program during the past several years. It is appropriate that this program be repealed at the same time as the mandatory property tax exemption provision in order to ensure that, for property tax purposes, the state is treating seniors and disabled veterans who rent a residence in a manner similar to seniors and disabled veterans who own a residence. 1993-01-15 House Journal Page 0086 HB 66 I urge your prompt consideration and passage of this bill. Sincerely, /s/ Walter J. Hickel Governor"