02/22/2006 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB265 | |
| SB193 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 265 | TELECONFERENCED | |
| += | SB 193 | TELECONFERENCED | |
| *+ | SB 247 | TELECONFERENCED | |
| *+ | SB 246 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 22, 2006
1:31 p.m.
MEMBERS PRESENT
Senator Bert Stedman, Chair
Senator Gary Stevens, Vice Chair
Senator Thomas Wagoner
MEMBERS ABSENT
Senator Johnny Ellis
Senator Albert Kookesh
COMMITTEE CALENDAR
SENATE BILL NO. 265
"An Act increasing the total amount of bonds and notes that the
Alaska Municipal Bond Bank Authority may have outstanding; and
providing for an effective date."
MOVED SB 265 OUT OF COMMITTEE
SENATE BILL NO. 193
"An Act relating to an optional deferral of municipal property
taxes on certain primary residences owned and occupied by
individuals with incomes at or below federal poverty guidelines
for the state."
HEARD AND HELD
SENATE BILL NO. 247
"An Act relating to the revenue sharing program; and providing
for an effective date."
BILL HEARING POSTPONED
SENATE BILL NO. 246
"An Act making a special appropriation from the Alaska capital
income fund to the revenue sharing fund; and providing for an
effective date."
BILL HEARING POSTPONED
PREVIOUS COMMITTEE ACTION
BILL: SB 265
SHORT TITLE: BONDS OF BOND BANK AUTHORITY
SPONSOR(s): SENATOR(s) STEDMAN
02/03/06 (S) READ THE FIRST TIME - REFERRALS
02/03/06 (S) CRA, FIN
02/15/06 (S) CRA AT 1:30 PM BELTZ 211
02/15/06 (S) Heard & Held
02/15/06 (S) MINUTE(CRA)
02/22/06 (S) CRA AT 1:30 PM BELTZ 211
BILL: SB 193
SHORT TITLE: DEFERRAL OF MUNICIPAL PROPERTY TAXES
SPONSOR(s): SENATOR(s) BUNDE
05/04/05 (S) READ THE FIRST TIME - REFERRALS
05/04/05 (S) CRA, FIN
01/30/06 (S) CRA AT 1:30 PM BELTZ 211
01/30/06 (S) -- Rescheduled to 02/08/06 --
02/08/06 (S) CRA AT 1:30 PM BELTZ 211
02/08/06 (S) Heard & Held
02/08/06 (S) MINUTE(CRA)
02/15/06 (S) CRA AT 1:30 PM BELTZ 211
02/15/06 (S) Heard & Held
02/15/06 (S) MINUTE(CRA)
02/22/06 (S) CRA AT 1:30 PM BELTZ 211
WITNESS REGISTER
SENATOR CON BUNDE
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor SB 193
ANDY HERRINGTON
Fairbanks, AK
POSITION STATEMENT: Supported SB 193
STEVE VAN SANT, State Assessor
Department of Commerce, Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Commented on SB 193
MARIE DARLIN
Capital City Task Force for AARP
Juneau, AK
POSITION STATEMENT: Stated support for SB 193
ACTION NARRATIVE
CHAIR BERT STEDMAN called the Senate Community and Regional
Affairs Standing Committee meeting to order at 1:31:30 PM.
Present were Senators Thomas Wagoner, Gary Stevens and Chair
Bert Stedman.
SB 265-BONDS OF BOND BANK AUTHORITY
1:32:21 PM
CHAIR BERT STEDMAN announced SB 265 to be up for consideration.
He noted that public testimony was taken at the previous hearing
then asked if anyone else had questions or comments. Finding
none, he asked for a motion.
1:32:59 PM
SENATOR GARY STEVENS motioned to report SB 265 from committee
with individual recommendations and attached fiscal notes. There
being no objection, it was so ordered.
SB 193-DEFERRAL OF MUNICIPAL PROPERTY TAXES
1:33:30 PM
CHAIR BERT STEDMAN announced SB 193 to be up for consideration
and asked for a motion to adopt the committee substitute (CS).
SENATOR GARY STEVENS moved \G version CS for SB 193 for
discussion purposes.
CHAIR STEDMAN called a brief at ease at 1:35:18 PM.
1:37:44 PM
CHAIR STEDMAN asked Senator Bunde to comment on the CS.
SENATOR CON BUNDE, Sponsor of SB 193, explained he changed the
title and removed "owned and occupied by individuals with
incomes at or below the federal poverty guidelines for the
state". In Section 1 the requirement of 10 years occupancy in
the home was changed to eligibility for a permanent fund
dividend. That streamlines the requirement with current statute
relating to the senior and veteran exemptions. Page 1, line 13,
(C) increases the income requirements to three times the federal
poverty guidelines. That allows municipalities more discretion
in choosing eligibility guidelines. He noted that the last two
changes were made at the Chair's request. Page 2, line 2 deals
with partial ownership. It requires that all owners maintain the
property as a primary residence; that they are eligible for a
permanent fund dividend; and that the combined income is less
than three times the federal poverty guideline. Page 2, line 10,
(b) requires that all owners apply annually. Page 2, line 18,
(c) allows municipalities to record a lien on the property to
ensure that they would be reimbursed.
CHAIR STEDMAN asked if he was comfortable with the bill in its
current form.
1:39:41 PM
SENATOR BUNDE replied yes. He then emphasized that the bill is
designed as a local option.
CHAIR STEDMAN asked if the reason for the bill is that under
current statute communities don't have the flexibility to offer
the deferral.
SENATOR BUNDE responded if this were established in statute more
communities would probably consider offering residents this
option. He reiterated that people in catastrophic circumstances
shouldn't have to worry about losing their property due to an
inability to pay property taxes.
CHAIR STEDMAN asked about anticipated participation.
SENATOR BUNDE replied anecdotal evidence indicates that there is
considerable interest in the option.
CHAIR STEDMAN asked him to clarify that there isn't an age
limit. He then reiterated the requirements listed previously.
SENATOR BUNDE said correct. Some people have suggested that the
senior deferral [exemption] be increased, but that program is an
unfunded mandate.
CHAIR STEDMAN opened public testimony.
1:43:05 PM
ANDY HERRINGTON, Fairbanks, testified via teleconference to
state support for SB 193.
1:44:50 PM
STEVE VAN SANT, State Assessor, Department of Commerce,
Community & Economic Development clarified that the senior
program is an exemption rather than a deferment. He advised that
most assessors see this as a useful tool, but some
municipalities have expressed concern that there is no ability
to collect interest on the deferred property tax.
CHAIR STEDMAN asked about anticipated participation.
MR. VAN SANT replied it's hard to say, but in the five years he
was an assessor in Anchorage about a dozen or so people came
forward who would have benefited from this proposal.
CHAIR STEDMAN asked if this would impact the senior hardship
exemption.
MR. VAN SANT explained that very few senior hardship exemptions
are applied for or granted. This would offer municipalities an
option other than granting an outright exemption.
1:49:43 PM
SENATOR BUNDE referenced the concern Mr. Van Sant voiced about
municipalities not receiving interest on the deferred taxes and
said he still views this as a win-win situation. The
municipality would eventually get its money.
1:51:23 PM
MARIE DARLIN, Capital City Task Force for AARP, reported that a
supporting letter had been submitted. She expressed the view
that the \G version CS improves the bill further.
1:52:23 PM
CHAIR STEDMAN reiterated there is no tie between SB 193 and the
current $150,000 senior property tax exemption.
There was no further testimony and he closed the public hearing.
CHAIR STEDMAN stated that he didn't have a quorum so he would
hold SB 193 in committee.
There being no further business to come before the committee,
Chair Stedman adjourned the meeting at 1:54:24 PM.
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