Legislature(2011 - 2012)BARNES 124

02/16/2012 08:00 AM COMMUNITY & REGIONAL AFFAIRS


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08:05:41 AM Start
08:05:59 AM HB264
08:25:01 AM Presentation: Yk Village Cluster Consolidated Services Model Plan
08:59:41 AM HB219
09:38:33 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 264 MUNI PROPERTY TAX EXEMPTION: SUBDIVISIONS TELECONFERENCED
Moved CSHB 264(CRA) Out of Committee
*+ HB 219 FIRE AND EMERGENCY MEDICAL SERVICES TELECONFERENCED
Heard & Held
+ Calista Overview: Marshall Port, Chikuminuk, TELECONFERENCED
Platinum Airport & Tri-Villages Project
+ Bills Previously Heard/Scheduled TELECONFERENCED
        HB 264-MUNI PROPERTY TAX DEFERRAL: SUBDIVISIONS                                                                     
                                                                                                                                
8:05:59 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ announced  that the first order of  business would be                                                               
HOUSE  BILL NO.  264, "An  Act allowing  a deferral  of municipal                                                               
property  taxes on  the increase  in the  value of  real property                                                               
attributable to  subdivision of that property;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
                                                                                                                                
8:06:40 AM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN, Executive  Director, Alaska  Municipal League,                                                               
acknowledged that  after speaking  with some  municipalities, she                                                               
had written  a letter to the  committee regarding HB 264.   Since                                                               
that time  she has spoken with  Dave Hanna, who is  involved with                                                               
the legislation, and agreed to work  with those in support of the                                                               
legislation.    For  now,  she  said to  ignore  the  letter  she                                                               
submitted to the committee.                                                                                                     
                                                                                                                                
8:08:01 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ announced that public testimony was closed.                                                                         
                                                                                                                                
8:08:34 AM                                                                                                                    
                                                                                                                                
CHRISTOPHER  CLARK, Staff,  Alaska  State Legislature,  presented                                                               
[Amendment 1]  labeled 27-LS1090\B.1, Bullard, 2/13/12,  with the                                                               
attached explanation, which read as follows:                                                                                    
                                                                                                                                
     Page 1, line 8, following "to":                                                                                            
          Insert "(1)"                                                                                                          
                                                                                                                                
     Page 1, line 9, following "parcels":                                                                                       
          Insert "; and                                                                                                         
               (2)  any improvements made to the property                                                                       
     necessitated by its subdivision"                                                                                           
                                                                                                                                
                  Explanation of Amendment B.1                                                                                
     Prepared by Christopher Clark, Aide, Rep. Cathy Munoz                                                                      
                                                                                                                                
     The current  language in  HB 264  may limit  a property                                                                    
     tax  deferral to  only those  costs  that are  directly                                                                    
     attributable to subdividing a  parcel such as surveying                                                                    
     and platting.                                                                                                              
                                                                                                                                
     Some municipalities such  as Juneau require subdivision                                                                    
     developers to make improvements  for things like access                                                                    
     roads, drainage ditches, and utility corridors.                                                                            
                                                                                                                                
     Adding  the   words  "any  improvements  made   to  the                                                                    
     property  necessitated by  its subdivision"  will allow                                                                    
     improvement  costs  to  be  part   of  a  property  tax                                                                    
     deferral.                                                                                                                  
                                                                                                                                
8:09:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  asked if [Amendment 1]  allows holding off                                                               
on the full extent of  development and giving protections so that                                                               
the  property owner  isn't  taxed.   She  expressed concern  with                                                               
creating  a situation  in  which  the land  is  cleared and  sits                                                               
vacant for 10 years, conceivably ready for development.                                                                         
                                                                                                                                
MR. CLARK reminded  the committee that HB 264,  as written, would                                                               
limit  the tax  deferral to  up  to five  years or  end when  the                                                               
permit is  issued.   The idea  is to  wait for  a building  to be                                                               
constructed on the property and then the tax deferral would end.                                                                
                                                                                                                                
CHAIR MUNOZ  also reminded  the committee  that the  proposed tax                                                               
deferral is optional.                                                                                                           
                                                                                                                                
8:11:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  recalled that  in Anchorage in  1967 there                                                               
was property with partial development  that was ready to sell and                                                               
build upon,  but which sat empty  and cleared for 30  years.  She                                                               
asked if HB 264 allows the aforementioned.                                                                                      
                                                                                                                                
MR. CLARK clarified  that's not the intent, rather  the intent is                                                               
to speed up development and avoid  vacant fields.  The idea is to                                                               
receive the  tax deferral  for five  years, such  that developers                                                               
have time to construct a building to sell.                                                                                      
                                                                                                                                
8:13:06 AM                                                                                                                    
                                                                                                                                
DAVE HANNA  emphasized that HB 264  is a valuable tool  to ensure                                                               
that  Representative   Cissna's  concerns  don't  happen.     The                                                               
language in  HB 264  is broad enough  to allow  municipalities to                                                               
apply the deferral in any manner  they see fit.  These incentives                                                               
could  be  used  in  various   ways  to  encourage  the  type  of                                                               
development the  municipalities want,  such as wider  green belts                                                               
or larger play grounds.                                                                                                         
                                                                                                                                
REPRESENTATIVE  CISSNA   surmised  then  that  HB   264  provides                                                               
municipalities choices and it's optional.                                                                                       
                                                                                                                                
MR. HANNA replied yes.                                                                                                          
                                                                                                                                
8:14:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   AUSTERMAN    asked   if   the    language   "any                                                               
improvements"  that  would  be  inserted  per  [Amendment  1]  is                                                               
defined or needs to be defined.                                                                                                 
                                                                                                                                
MR. HANNA  said that it  would be  left to the  municipalities to                                                               
define.     However,   he  informed   the  committee   that  most                                                               
municipalities  allow phased  development of  a subdivision.   He                                                               
surmised that municipalities  would use [the language]  as a tool                                                               
to  specify that  a certain  amount  of development  occurs by  a                                                               
certain  point.   He related  that currently  in Juneau,  one can                                                               
apply  for a  plat and  make improvements  without recording  the                                                               
plat or completing the improvements.                                                                                            
                                                                                                                                
8:16:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked if  it's the sponsor's  intent that                                                               
the proposed property tax referral is not renewable.                                                                            
                                                                                                                                
MR.  CLARK answered  that since  the legislation  doesn't make  a                                                               
provision  for it  to be  renewable  he presumed  that it's  not.                                                               
Therefore, the  proposed property  tax referral  would be  a one-                                                               
time allowance.   Again, the legislation  provides flexibility to                                                               
municipalities to  implement the  proposed property  tax deferral                                                               
as they see fit.                                                                                                                
                                                                                                                                
8:17:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER moved to adopt Amendment 1, 27-                                                                          
LS1090\B.1, Bullard, 2/13/12, [text  provided previously].  There                                                               
being no objection, Amendment 1 was adopted.                                                                                    
                                                                                                                                
8:18:07 AM                                                                                                                    
                                                                                                                                
MR.  CLARK  moved  on to  [Amendment  2]  labeled  27-LS1090\B.2,                                                               
Bullard, 2/13/12,  with the attached  explanation, which  read as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 2, line 1:                                                                                                            
          Delete "the municipality grants a building permit                                                                     
     for all or a portion of"                                                                                                   
          Insert "a residential or commercial building is                                                                       
     constructed on"                                                                                                            
                                                                                                                                
     Page 2, line 7:                                                                                                            
          Delete "the municipality grants a building permit                                                                     
     for a portion of"                                                                                                          
          Insert "a residential or commercial building is                                                                       
     constructed on"                                                                                                            
                                                                                                                                
                  Explanation of Amendment B.2                                                                                
     Prepared by Christopher Clark, Aide, Rep. Cathy Munoz                                                                      
                                                                                                                                
     This  amendment is  aided at  fulfilling the  intent of                                                                    
     the  bill  to  end  a  property  tax  deferral  when  a                                                                    
     property is  improved and a building  is constructed on                                                                    
     it - so long as that happens within five years.                                                                            
                                                                                                                                
     The   current  language   ends   a   deferral  when   a                                                                    
     municipality  grants a  building  permit for  all or  a                                                                    
     portion  of  a  subdivided   parcel.    There  are  two                                                                    
     concerns with this:                                                                                                        
                                                                                                                                
          1. Some municipalities don't issue building                                                                           
     permits; and,                                                                                                              
       2. No improvements may have been done at the time                                                                        
     a permit is issued.                                                                                                        
                                                                                                                                
     This amendment would end the deferral when a building                                                                      
     is constructed on the property.                                                                                            
                                                                                                                                
8:19:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  pointed out  that  there  is a  dangling                                                               
modifier in the language being inserted by [Amendment 2].                                                                       
                                                                                                                                
8:20:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN   moved  to  adopt  Amendment   2,  27-                                                               
LS1090\B.2, Bullard, 2/13/12, [text provided previously].                                                                       
                                                                                                                                
8:20:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  then  moved  to adopt  an  amendment  to                                                               
Amendment 2  such that the  language being inserted  by Amendment                                                               
2:   "a residential  or commercial  building is  constructed on",                                                               
would  be replaced  with the  following  language:   "on which  a                                                               
residential or commercial building  is constructed".  There being                                                               
no objection, the amendment to Amendment 2 was adopted.                                                                         
                                                                                                                                
[The  committee   then  treated  Amendment  2,   as  amended,  as                                                               
adopted.]                                                                                                                       
                                                                                                                                
8:20:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE AUSTERMAN moved to report  HB 264, as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no  objection,  CSHB                                                               
264(CRA)  was  reported from  the  House  Community and  Regional                                                               
Affairs Standing Committee.                                                                                                     

Document Name Date/Time Subjects
HB 219 Sponsor Statement.pdf HCRA 2/16/2012 8:00:00 AM
HB 219
HB219 Div of Insurance.pdf HCRA 2/16/2012 8:00:00 AM
HB 219
HB219 Tri Valley Support News miner.pdf HCRA 2/16/2012 8:00:00 AM
HB 219
HB219-DCCED-INS-02-10-12.pdf HCRA 2/16/2012 8:00:00 AM
HB 219