HB 358-EXEMPTION FROM PROPERTY TAX: TIMBER                                                                                    
                                                                                                                                
CO-CHAIR MORGAN announced that the  first order of business would                                                               
be HOUSE BILL NO. 358, "An  Act relating to an optional exemption                                                               
from municipal property taxes for  certain land from which timber                                                               
is harvested  and for certain  improvements used in  or necessary                                                               
to the harvest of timber."                                                                                                      
                                                                                                                                
CO-CHAIR MORGAN noted  that there is a  committee substitute [CS]                                                               
that incorporates the amendments adopted at the prior hearing.                                                                  
                                                                                                                                
Number 0078                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI  moved  to  adopt CSHB  358  [Version  22-                                                               
LS1250\C] as  the working  document.   There being  no objection,                                                               
CSHB 358, Version C, was before the committee.                                                                                  
                                                                                                                                
REPRESENTATIVE   SCALZI    explained   that    currently   Native                                                               
corporations   are  exempt   from  [municipal]   property  taxes.                                                               
However,  if  there  are  timber  sales  from  Native  land,  the                                                               
aforementioned  exemption would  be  eliminated.   If the  change                                                               
[incorporated in  the CS] doesn't  pass, the [Native]  lands will                                                               
fall  under  a  new  tax   jurisdiction  and  a  disincentive  to                                                               
harvesting the [infested] timber will  be created.  He emphasized                                                               
the need to allow the emergency  fire timber sales to take place.                                                               
The change [incorporated  in the CS] would allow the  taxes to be                                                               
deferred.  He noted that [this tax deferment] is a local option.                                                                
                                                                                                                                
REPRESENTATIVE MIKE CHENAULT,  Alaska State Legislature, speaking                                                               
as the sponsor, announced that he was agreeable to the changes.                                                                 
                                                                                                                                
Number 0303                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUESS  moved to report  CSHB 358 out  of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.  There being no  objection, CSHB 358(CRA) was reported from                                                               
the House Community and Regional Affairs Standing Committee.                                                                    
                                                                                                                                
The committee took a brief at-ease from 8:14 a.m. to 8:16 a.m.