02/18/2010 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB120 | |
| SB232 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| = | SB 120 | ||
| = | SB 232 | ||
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 18, 2010
3:33 p.m.
MEMBERS PRESENT
Senator Joe Thomas, Vice Chair
Senator Hollis French
Senator Albert Kookesh
Senator Linda Menard
MEMBERS ABSENT
Senator Donald Olson, Chair
COMMITTEE CALENDAR
SENATE BILL NO. 120
"An Act relating to an optional exemption from municipal
property taxes for residential property."
- MOVED CSSB 120(CRA) OUT OF COMMITTEE
SENATE BILL NO. 232
"An Act relating to an optional municipal property tax exemption
for residential property."
- MOVED SB 232 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 120
SHORT TITLE: MUNICIPAL PROPERTY TAX EXEMPTION
SPONSOR(s): SENATOR(s) THOMAS
02/20/09 (S) READ THE FIRST TIME - REFERRALS
02/20/09 (S) CRA, FIN
02/04/10 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
02/04/10 (S) Heard & Held
02/04/10 (S) MINUTE(CRA)
BILL: SB 232
SHORT TITLE: MUNICIPAL RESIDENTIAL PROPERTY TAXES
SPONSOR(s): SENATOR(s) WIELECHOWSKI
01/19/10 (S) READ THE FIRST TIME - REFERRALS
01/19/10 (S) CRA, FIN
02/04/10 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
02/04/10 (S) Heard & Held
02/04/10 (S) MINUTE(CRA)
WITNESS REGISTER
GRIER HOPKINS
Aide to Senator Thomas
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Provided information on SB 120 for the
sponsor.
GEORGE ASCOTT
Aide to Senator Wielechowski
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Provided information on SB 232 for the
sponsor.
ACTION NARRATIVE
3:33:23 PM
VICE-CHAIR THOMAS called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:33 p.m. Present
at the call to order were Senators French, Menard, Kookesh and
Thomas.
SB 120-MUNICIPAL PROPERTY TAX EXEMPTION
3:33:59 PM
VICE-CHAIR THOMAS announced the first order of business to come
before the committee to be SB 120. Senator Thomas, as sponsor of
SB 120, handed the gavel over to Senator French to chair the
meeting.
SENATOR MENARD moved to adopt the proposed committee substitute
to SB 120, labeled CSSB 120(CRA), Version R, as the working
document. There being no objection, the motion carried.
SENATOR THOMAS said CSSB 120(CRA), Version R, increases the
maximum optional municipal property tax exemption for a private
residence from $20,000 to $50,000. SB 120 originally proposed a
maximum of $100,000 and this was lowered to $50,000 on page 1,
line 9. SB 120 does not mandate any action by the municipalities
but allows those which have taxing authority to increase their
residential property tax exemptions. Currently, 14 boroughs and
12 cities with a combined population of about 590,000, levy
property tax.
3:36:43 PM
SENATOR THOMAS said SB 120, by allowing local control in setting
the exemption at any amount up to $50,000, would give
municipalities with a large enough population the ability to
relieve the tax burden borne by homeowners. Local ordinance
would then require voter approval before enactment. Legislation
in 2004 resulted in the implementation of a $20,000 optional
exemption which has been a valuable tool for municipalities. He
urged the timely passage of SB 120 as municipalities attempt to
diversify their income base and respond to the needs of private
citizens struggling with today's rising costs.
SENATOR MENARD asked if SB 120 was being brought forward because
of rising energy costs.
SENATOR THOMAS answered yes and referred to Table 1 which showed
which municipalities have property tax, sales tax or special
taxes. Currently, only some municipalities have taken advantage
of the allowable exemption of up to $20,000 and SB 120 does not
mean that all municipalities will implement the exemption up to
$50,000. He mentioned that an initiative had also been started
to put an increased exemption before the voters.
3:39:22 PM
SENATOR FRENCH asked if any table showed which municipalities
had taken advantage of the municipal property tax exemption and
how much they had exempted.
SENATOR THOMAS referred him to a table called "Municipal
Residential Property Tax Exemptions Authorized."
GRIER HOPKINS, staff to Senator Thomas, explained that 30
municipalities assess property tax but do not use any exemption
and 6 municipalities enacted some portion of the $20,000
exemption: Anchorage, Valdez, Bristol Bay, Fairbanks Northstar
Borough, Kenai Peninsula and the North Slope Borough.
SENATOR FRENCH stated that some municipalities were taking
advantage of the law that was put on the books in 2004 and SB
120 would give them the opportunity to continue doing so.
3:41:44 PM
SENATOR FRENCH closed public testimony.
SENATOR MENARD said she thought SB 120 was an excellent way to
allow the different municipalities and cities to do what they
want. She remembered the past governor doing away with property
taxes in Wasilla because they were so high and it worked well.
She appreciated that they were "stepping this up a little bit"
so it wouldn't have to go out as an initiative.
SENATOR MENARD moved to report CSSB 120(CRA) from committee with
individual recommendations and attached fiscal note(s). There
being no objection, the motion carried.
SENATOR FRENCH noted that the fiscal note for the CS might be
different than for SB 120.
3:43:15 PM
SENATOR FRENCH announced an at ease from 3:43 p.m. to 3:44 p.m.
SB 232-MUNICIPAL RESIDENTIAL PROPERTY TAXES
3:44:15 PM
VICE-CHAIR THOMAS announced the next order of business to come
before the committee was SB 232.
GEORGE ASCOTT, staff to Senator Wielechowski, said SB 232 and SB
120, now both with a $50,000 exemption limit, are essentially
identical. He explained the only different is that SB 232 allows
the municipalities to extend the property tax exemption on to
rental properties if they chose to do so; the intention being
that the tax burden would not be passed on to renters.
SENATOR FRENCH moved to report SB 232 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, the motion carried.
3:47:13 PM
VICE-CHAIR THOMAS, seeing nothing else to come before the
committee, adjourned the meeting at 3:47 p.m.
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