Legislature(2011 - 2012)BELTZ 105 (TSBldg)
02/23/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB183 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 183 | TELECONFERENCED | |
SB 183-PROPERTY TAX EXEMPTION/MILITARY WIDOW(ER)
3:34:42 PM
CHAIR OLSON announced the consideration of SB 183.
CELESTE HODGE, staff to Senator Bettye Davis, Alaska State
Legislature, said the bill authorized municipalities to exempt
from tax the real property that was the primary residence of a
resident who was a widow or widower of a person killed while in
the military service. She said the legislation would extend the
exemption towards a surviving spouse, age 60 or older, of a
military member or veteran who qualified for the senior property
tax exemption and was killed in the line of duty. She said SB
183 would exempt the widow or widower on the first $150,000 of
the assessed value of the real property. She said the tax
exemption would have to be approved by the voters in each
municipality or borough to take effect. She said the
municipality of Anchorage had considered putting the exemption
on the ballet for voters to consider in April. She said disabled
veterans and spouses of disabled veterans currently received
property tax exemptions under state law.
3:35:31 PM
SENATOR ELLIS arrived.
3:36:41 PM
CHAIR OLSON asked if there would be a difference as to whether a
person was a widow or widower to receive the tax exemption.
MS. HODGE answered no.
CHAIR OLSON asked if the exemption applied to all branches of
the military.
MS. HODGE answered yes.
CHAIR OLSON asked if the National Guard was included.
MS. HODGE answered yes.
SENATOR MENARD asked if the bill was patterned after
municipalities that provided property tax relief to permanent
residents over the age of 64.
MS. HODGE answered yes.
SENATOR MENARD commented that municipalities' budgets be
affected. She asked if communities other than Anchorage have
considered putting the exemption on upcoming ballets.
MS. HODGE answered that she did not know.
SENATOR OLSON asked if Alaska Municipal League (AML) had
provided feedback.
MS HODGE answered no.
CHAIR OLSON asked if a city would have to pass an ordinance in
order to implement the tax exemption.
MS. HODGE answered correct.
SENATOR MENARD asked how many Alaskans would qualify.
MS. HODGE answered that five would qualify in Anchorage.
3:40:13 PM
DICK TRAINI, Assembly Member, Municipality of Anchorage, said
the tax exemption was introduced to the Anchorage Assembly and
the initiative was placed on the April ballet. He noted that a
tax exemption approved by voters would be conditional upon the
legislature passing SB 183. He said the municipality would take
full responsibility for covering lost tax revenue.
SENATOR MENARD commented on previous legislation for military
widow or widower that an extra year would be given to a collect
a Permanent Fund Dividend (PFD). She said legislation like SB
183 would show sensitivity and help aid widows or widowers.
3:41:58 PM
SENATOR MENARD asked if a tax exemption strictly applied to
military personnel killed in line of duty.
MR. TRANI answered yes.
3:42:59 PM
CHAIR OLSON asked about eligibility if a soldier committed
suicide.
MR. TRANI answered that he did not know. He said the legislature
would have to define "in the line of duty."
3:44:00 PM
SENATOR MENARD commented that "line of duty" must be defined and
noted possible suicide issues relating to mental illness.
SENATOR KOOKESH said the bill's title stated "while killed in
the line of military service" and did not mention "in the line
of duty."
SENATOR MENARD responded that "killed in the line of duty while
in the military" was noted in the bill.
3:44:57 PM
SENATOR KOOKESH commented that the bill's title and content were
different and would have to be changed.
SENATOR BETTYE DAVIS, sponsor of SB 183, asked if Senator Menard
was referring to the bill or the sponsor statement.
SENATOR MENARD responded that the bill stated "who was killed
while in military service to the United States in providing for
an effective date."
SENATOR KOOKESH noted that the bill was pretty clear from what
Senator Menard had read.
CHAIR OLSON asked if the bill's sponsor had any comments on the
suicide question.
SENATOR DAVIS responded that she was not able to answer
questions involving suicide.
MR. TRANI commented that Senator Davis could contact the
military base in Anchorage and find out what their definition of
suicide was.
SENATOR DAVIS responded that she would check with the military
base.
SENATOR MENARD asked how many other states had similar tax
exemption statutes.
SENATOR DAVIS answered that she did not know.
3:46:46 PM
MS. HODGE responded that several states had similar legislation.
CHAIR OLSON noted Florida was one state. He asked if the bill
was similar to Florida's legislation.
MS. HODGE answered yes. She said Arkansas, Maryland, Wisconsin,
Illinois, South Dakota and Arizona had similar legislation.
SENATOR MENARD asked if most of the states were at the $150,000
exemption level.
3:47:35 PM
WENDY LAWRENCE, Assistant State Assessor, Office of the State
Assessor, Department of Community and Regional Affairs, said the
bill was an optional exemption placed under the mandatory
section under AS.29.45.030 and the state would be required to
reimburse municipalities. She noted that reimbursement had not
occurred in the last ten years.
CHAIR OLSON asked to clarify that the state would have to
reimburse the municipalities for the tax exemptions.
MS. LAWRENCE answered correct.
CHAIR OLSON asked if reimbursement would be on the first
$150,000.
MS. LAWRENCE answered correct. She said the exemptions would be
mandatory and must be reimbursed to municipalities.
CHAIR OLSON asked why there was a zero fiscal note with the
bill.
MS. LAWRENCE answered that she did not know.
3:49:14 PM
SENATOR DAVIS said she would confirm that the state would have
to reimburse local municipalities for property tax exemptions.
She said the only reason why she introduced the bill was due to
municipalities not being able to approve property tax exemptions
without legislative approval.
3:50:13 PM
CHAIR OLSON said SB 183 would be held.
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