Legislature(2009 - 2010)HOUSE FINANCE 519
04/03/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB161 | |
| HB121 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 161 | TELECONFERENCED | |
| += | HB 121 | TELECONFERENCED | |
HOUSE BILL NO. 121
"An Act relating to a municipal property tax credit for
an improvement that aids in improving air quality."
Vice-Chair Thomas MOVED to ADOPT CSHB 121, labeled 26-
LS0540\P, Cook, 4/2/09.
Co-Chair Hawker OBJECTED.
BEN MULLIGAN, STAFF, CO-CHAIR BILL STOLTZE, explained three
changes in the new CS. The first change is on page 1, lines
5-7, and stipulates that the air quality improvement tax
credit only applies to a municipality that has air quality
issues with fine particles that are less than or equal to
2.5 micrometers. The second change is that language was
removed that set guidelines for how the municipality should
award the tax credits. The third change occurs on line 13,
and adds a sunset clause on January 1, 2016.
Co-Chair Hawker agreed with the second change, taking out
guidelines because it gives municipalities wide latitude to
make their own determination as to how they might want to
structure such a program. He requested more information
about the repeal.
Mr. Mulligan related that it is a pilot project. If it
works, the legislature can extend or modify it.
2:52:33 PM
Co-Chair Hawker spoke to the first change, which responded
to his and Representative Stoltz's concern that the bill was
designed to target Fairbanks and Juneau, not Anchorage. The
broadness of the language also included Anchorage. The
intent of the bill was to benefit only the two communities.
The change would make Anchorage ineligible for this
legislation.
2:54:16 PM
Co-Chair Hawker WITHDREW his OBJECTION to adopting CSSB 121.
There being NO OBJECTION, CSSB 121 was adopted.
Representative Gara maintained that the bill gives the
municipalities an option, not a mandate. It is giving only
those municipalities that are violating federal air quality
standards the ability to give a tax break at their
discretion to folks who use energy efficient heating. He
thought that should be a local decision. The amendment says
that any community that wants to give their taxpayers an
incentive to use energy efficient heating could. It does
not impose a mandate, it gives discretion to municipalities,
and it is a policy statement. He did not see it having a
high cost.
2:58:00 PM
Representative Kelly reported that Fairbanks is in a bind
regarding the 2.5 air quality standard. He was concerned
that the amendment would open the bill to further protest
and would kill it. He was not opposed to the discussion.
He gave examples of his support of energy-saving devices and
his concern when the borough shuts them down. The bill is
important because it helps people convert to modern devices.
The bill also helps Fairbanks address pollution issues.
Co-Chair Hawker echoed Representative Kelly's concerns. The
bill is very specific and addresses a specific problem. He
feared the unknown of the amendment.
3:02:54 PM
Representative Gara MOVED to ADOPT Amendment 1:
Page 1, line 5, following "municipality":
Delete "that includes within its boundaries an area
that fails to meet federal or state air quality
standards for fine particles that are less than or
equal to 2.5 micrometers in diameter"
Co-Chair Hawker OBJECTED.
Representative Gara didn't see a problem letting a community
decide to write its local tax code. He maintained it was
not a mandate.
3:04:53 PM
Vice-Chair Thomas gave examples from Haines showing that it
already has the ability to write its local tax code. He did
not think the amendment was necessary.
Representative Crawford wondered if Fairbanks already had
the option to correct the problem. He thought local control
was good.
Co-Chair Hawker agreed with Representative Gara's wanting to
provide discretion to local communities. He viewed it as a
creation of different classes of taxpayers. He did not
trust the municipalities to fairly reallocate tax zones.
3:07:30 PM
Representative Gara reported that he discovered that some
communities do not have this discretion.
Co-Chair Hawker stated that the bill was brought forth by
communities that saw a need.
Representative Kelly reported that Fairbanks does have a
problem. He gave as an example the Senior Exemption on
property tax. He maintained that the bill was necessary.
Representative Crawford asked how Haines could grant an
exemption from the sales tax. Representative Kelly said the
bill is relative to property tax, not to sales tax and the
exemption must be approved by the state.
3:10:47 PM
Representative Crawford suggested rebating the sales tax.
Representative Kelly said they do not have a sales tax.
Co-Chair Hawker MAINTAINED his objection.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara
OPPOSED: Thomas, Austerman, Fairclough, Joule, Kelly,
Hawker
The MOTION FAILED (2-6).
3:14:11 PM
Representative Kelly MOVED to ADOPT Conceptual Amendment 2,
to change 2.5 "micrometers" to "microns" on line 7.
Co-Chair Hawker OBJECTED.
Representative Kelly noted the change was on page 1, line 7.
Co-Chair Hawker MAINTAINED his objection.
KAREN LIDSTER, STAFF, REPRESENTATIVE JOHN COGHILL, quoted
the Department of Environmental Conservation and maintained
that the correct term is "micrometers". Co-Chair Hawker
asked if the sponsor prefers the bill to reflect the
language of the federal EPA designation. Ms. Lidster said
yes.
3:17:28 PM
Representative Kelly argued that it should say microns. He
suggested holding the bill and asking the Department of
Environmental Conservation for an opinion, although he
preferred to move the bill.
Representative Kelly WITHDREW Conceptual Amendment 2.
3:19:13 PM
Representative Kelly MOVED to REPORT CSHB 121 (FIN) with
individual recommendations and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CSHB 121 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note #1 by the
Department of Commerce, Community and Economic Development.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 121 Amendment 1.doc |
HFIN 4/3/2009 1:30:00 PM |
HB 121 |