01/31/2006 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

HB 334-MUNICIPAL PROPERTY TAX DEFERRAL/EXEMPTION                                                                              
                                                                                                                                
CO-CHAIR OLSON announced  that the first order  of business would                                                               
be HOUSE BILL NO. 334, "An  Act relating to an exemption from and                                                               
deferral  of  municipal  property  taxes  for  certain  types  of                                                               
deteriorated property."                                                                                                         
                                                                                                                                
8:07:12 AM                                                                                                                    
                                                                                                                                
JIM  POUND, Staff  to Representative  Jay Ramras,  sponsor of  HB
,  said it  is a  re-development  bill.   There are  abandoned                                                               
structures  around  the state  including  the  McKay building  in                                                               
Anchorage  and the  Polaris building  in Fairbanks,  and he  said                                                               
developers  are planning  to take  the basic  structure of  these                                                               
sound  buildings  and change  the  interiors  to condominiums  or                                                               
offices.   Current  statute allows  for tax  deferment while  the                                                               
buildings are  being refurbished, but  the language is  not clear                                                               
when that deferment ends.   He noted that the uncertainty hampers                                                               
the developers' ability  to borrow money.  The  bill will provide                                                               
certainty  by ending  the  deferment  only at  the  point when  a                                                               
portion or all  of the building is transferred  from the original                                                               
developer.                                                                                                                      
                                                                                                                                
8:08:27 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS asked if communities have that option.                                                                          
                                                                                                                                
8:09:00 AM                                                                                                                    
                                                                                                                                
MR. POUND said yes but  HB 334 clarifies existing language, which                                                               
will provide certainty when going to the bank.                                                                                  
                                                                                                                                
8:09:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX noted  the  change in  the  date when  the                                                               
deferral may be granted.                                                                                                        
                                                                                                                                
MR. POUND  said the entire  section of  the statute has  a sunset                                                               
date, so the date in HB 334 needs to correspond to it.                                                                          
                                                                                                                                
8:10:21 AM                                                                                                                    
                                                                                                                                
CO-CHAIR OLSON asked for testifiers.                                                                                            
                                                                                                                                
8:10:59 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS moved  to report  HB 334  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
Hearing  no objection,  HB  334  was reported  out  of the  House                                                               
Community and Regional Affairs Standing Committee.                                                                              
                                                                                                                                
8:11:19 AM