03/09/1999 05:05 PM House RLS

HB  76-MUNICIPAL TAXES ON DETERIORATED PROPERTY                                                                                 
                                                                                                                                
Number 030                                                                                                                      
                                                                                                                                
CHAIRMAN COWDERY announced that the only order of business before                                                               
the committee was HOUSE BILL NO. 76, "An Act relating to an                                                                     
exemption from and deferral of payment on municipal taxes on                                                                    
deteriorated property; and providing for an effective date."                                                                    
                                                                                                                                
REPRESENTATIVE PORTER moved to adopt the proposed CS, Version                                                                   
LS0410\G Cook dated 3/8/99, as the working document before the                                                                  
committee.  There being no objection, it was so ordered.                                                                        
                                                                                                                                
Number 0080                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO, Sponsor of HB 76, Alaska State Legislature,                                                              
informed the committee that last year HB 399 was passed which                                                                   
allowed municipal governments to exempt or defer payment of                                                                     
municipal taxes on deteriorated properties.  Since that time the                                                                
Anchorage Municipality requested some technical changes in order to                                                             
clarify some ambiguities in the statute.  The changes achieve the                                                               
following:  clarify that a municipality may partially or totally                                                                
exempt a deteriorated property from property taxes, provides that                                                               
the exemption may begin any time or after substantial                                                                           
rehabilatation begins, and prohibits an exemption and a deferral                                                                
being in place at the same time.                                                                                                
                                                                                                                                
REPRESENTATIVE HALCRO noted that the Senate has amended SB 54, its                                                              
version of HB 76, in the Senate Community & Regional Affairs                                                                    
Committee.  The changes made in the Senate are technical as well                                                                
and copies of the amendment are included in the committee packet.                                                               
The Senate inserted language indicating that the amount deferred                                                                
each year is a lien on that property for that year which affords                                                                
some protection to the city.  Per the concern of an assessor in                                                                 
Kodiak, the language ".  An ordinance adopted under this subsection                                                             
must include specific eligibility requirements and require a                                                                    
written application for each exemption or deferral" was inserted in                                                             
order to create a structure for those communities such as Kodiak                                                                
that do not currently have written rules to implement deferrals or                                                              
exemptions.                                                                                                                     
                                                                                                                                
Number 0259                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ asked if Anchorage, since this bill is                                                                 
essentially concerning the McKay Building, has an ordinance that                                                                
would comply.                                                                                                                   
                                                                                                                                
REPRESENTATIVE HALCRO replied yes, municipal ordinance 98-135 which                                                             
provides a vehicle for property tax deferrals.                                                                                  
                                                                                                                                
REPRESENTATIVE GREEN asked if Representative Halcro had heard from                                                              
other municipalities on this legislation.                                                                                       
                                                                                                                                
REPRESENTATIVE HALCRO informed the committee that when HB 76 was                                                                
heard in House Community & Regional Affairs Committee, only Steve                                                               
Van Sant, the State Assessor, testified.  Mr. Van Sant recommended                                                              
some language changes which were adopted.                                                                                       
                                                                                                                                
REPRESENTATIVE BERKOWITZ informed the committee that he interpreted                                                             
"written" to include electronically transmited.                                                                                 
                                                                                                                                
Number 0385                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER moved to report CSHB 76, Version G, out of                                                                
committee with individual recommendations.  There being no                                                                      
objection, it was so ordered.  Therefore, CSHB 76(RLS) moved out of                                                             
committee.