Legislature(2007 - 2008)SENATE FINANCE 532
02/21/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB122 | |
| SB204 | |
| HB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 201 | TELECONFERENCED | |
| + | SB 122 | TELECONFERENCED | |
| + | SB 204 | TELECONFERENCED | |
| + | HB 67 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 204
"An Act relating to an optional exemption from
municipal property taxes for residences of widows and
widowers of certain members of the armed forces of the
United States; and providing for an effective date."
SENATOR GENE THERRIAULT, SPONSOR, explained that SB 204
proposes optional property tax allowance for widows or
widowers of military personel who were killed in the line of
duty. In deference to the geographic differences around the
state and wanting to protect local control, the bill
provides an option rather than a mandate for property tax
exemption. He explained that the companion legislation, HB
285, removed the 90 day requirement.
Co-Chair Stedman asked Senator Therriault to define
"permanent place of abode". Senator Therriault explained
that the permanent place of abode is where a person lives.
He added that, with the latitude in the bill, the definition
would be created through local ordinances. He further
explained that, if a person owns multiple properties, the
state law suggests that the exemption be granted for the
property on which the person lives.
Senator Dyson asked if any consideration had been given to
extending the exemption to handicapped veterans who are
unable to earn income.
10:21:21 AM
Senator Therriault responded that in current law the senior
property tax exemption includes disabled veterans.
Senator Elton asked if the municipality has the option to
provide the exemption to someone who is not a resident.
Senator Therriault responded that SB 204 would allow for a
person to move to the State to qualify for the exemption.
He said thought had been given to whether to differentiate
between a spouse that gave their life in the line of duty
based on residency. He further noted that he didn't expect
people to move to Alaska to take advantage of the property
tax exemption. He provided an example of a soldier
stationed overseas who was an Alaska resident; he was
stationed overseas, but had property in Alaska.
10:23:46 AM
Senator Elton asked if the provision mandates that the
municipality offer the exemption to an individual who was
not a resident, or could the municipality determine
criteria. Senator Therriault clarified that the current
wording is a mandate. He said that, if that was not the
desired result, language would need to be added to clarify.
Senator Elton restated for clarification that the program is
optional, but some of the options may be precluded. Senator
Therriault said the level and length were optional; the
prospective pool is mandated.
Senator Huggins suggested the 90 day language is irrelevant.
He also clarified that Alaska is considered an overseas
tour-of-duty. A permanent place of abode means different
things to different people, particularly those who work for
the military. He supported the bill, but wanted to be
certain the language was correct.
10:26:39 AM
Senator Thomas assumed that line 11, 12, and 13 are critical
in indicating that the ordinance would allow a particular
entity to manage some of the residency issues. He said he
was troubled by the possibility of someone moving to the
State to take advantage of the exemption. He also
questioned the eligibility of someone who remarried.
Senator Therriault said if a person remarries they are no
longer a widower and would not be eligible for the property
tax exemption.
Co-Chair Stedman asked about those living in a commercial
building and how they are considered for the exemption as
opposed to those who own a home.
10:28:43 AM
Senator Therriault reiterated that there is enough
flexibility in the provision to allow municipalities to make
determinations. He informed the Committee that the Alaska
Municipal League supports SB 204.
Co-Chair Stedman asked how many municipalities were
anticipated to take advantage of the exemption.
ERNEST PRAX, STAFF, SENATOR GENE THERRIAULT, said that 80-
100 soldiers stationed in Alaska have been killed in combat
duty. There is uncertainty with regard to how many soldiers
had families, and how many of those families had chosen to
stay in Alaska.
10:31:04 AM
Senator Thomas referenced the wording on line 9, and asked
if the language included a person who is killed under
"friendly fire". He explained that in a previous committee
there was a question regarding a suicide case and whether
dependents would be the eligible for the exemption. Mr. Prax
said that if a soldier intentionally took his own life, then
the family would not be eligible for the exemption. He went
on to say that if a soldier was killed in the line of fire
while protecting another soldier, they would not only be
eligible, but would be bumped up the priority list for
receipt of benefits. With regard to being killed under
"friendly fire" the answer is yes, they would be eligible.
Senator Huggins asked the Sponsor if it was his intention to
make a widower who had remarried ineligible.
Senator Therriault responded yes. He further clarified that
the eligibility for the exemption is based on "hostile" or
"friendly" fire. Any individual receiving "imminent danger"
pay is eligible for the exemption.
10:33:41 AM
Co-Chair Stedman asked if the definition includes a soldier
who is preparing to go to Iraq and dies before being
deployed. Senator Therriault said that the soldier in that
scenario would not be eligible as they would not yet be
receiving "imminent danger" pay.
10:35:16 AM
Senator Huggins clarified that an individual is considered
eligible for imminent danger pay when in the combat zone
circle, regardless of what capacity they serve.
10:36:52 AM
SUSAN HERNANDEZ, FAIRBANKS (Testified via teleconference),
testified in support of SB 204. Her husband was killed in
Iraq in 2006. She reiterated the definition of "imminent
danger pay". She further commented that she did not feel it
appropriate for a soldier to receive benefits if their death
was at their own hand.
Mr. Van Sant provided definitions:
-permanent place of abode: 185 days a year
-Widow: benefits stop if remarry, municipalities could
extend
-"90 days" was taken out of house bill due to assessors
seeing it as problematic. He suggested the 90 day
language be removed from SB 204.
Senator Therriault said he did not have a problem with
omitting the 90 day provision and noted he would work with
staff to draft a CS.
SB 204 was HEARD and HELD in Committee for further
consideration.
10:42:36 AM
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