00 CS FOR HOUSE BILL NO. 306(RES)                                                                                          
01 "An Act relating to an optional municipal tax credit for costs of certain river                                         
02 habitat protection improvements."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.45 is amended by adding a new section to read:                                                   
05  Sec. 29.45.046.  RIVER HABITAT PROTECTION TAX CREDIT.  (a)  A                                                         
06 municipality may by ordinance provide for a river habitat protection credit to be                                       
07 applied to offset a portion of the property taxes due on land, or an interest in land                                   
08 taxable under this chapter, upon which an improvement has been constructed that aids                                    
09 in                                                                                                                      
10   (1)  protecting the Kenai River or a tributary of the Kenai River from                                               
11 degradation of fish habitat due to public or private use; or                                                            
12   (2)  restoring riparian fish habitat along or in the Kenai River or a                                                
13 tributary of the Kenai River that has been damaged by land use practices.                                               
14  (b)  The amount of a river habitat protection credit shall be based upon a                                            
01 percentage of the verifiable costs of the improvement and may not exceed 50 percent                                     
02 of the total amount of taxes levied upon the land or upon the taxable interest in the                                   
03 land during a single tax year, but the credit may be granted for more than one year.                                    
04 If the credit is granted for more than one year and the land or taxable interest in the                                 
05 land is conveyed, the portion of the credit remaining is extinguished.  The ordinance                                   
06 may limit the availability of a credit to some, but not all types of improvements for                                   
07 which a credit may be granted under this section and to some, but not all areas of the                                  
08 municipality.  A credit may only be granted for an improvement that has been                                            
09 constructed in compliance with state and federal laws and certified by the Department                                   
10 of Fish and Game under (c) of this section.  A credit may not be granted for an                                         
11 improvement                                                                                                             
12   (1)  required under state or federal law; or                                                                         
13   (2)  located more than 150 feet from the mean high tide line or ordinary                                             
14 high water line; in this paragraph, "ordinary high water line" means that line on the                                   
15 shore of the nontidal portion of a river or stream that reflects the highest level of water                             
16 during an ordinary year and is established by fluctuations of water and indicated by                                    
17 physical characteristics such as a clear, natural line impressed on the bank, shelving,                                 
18 changes in the character of soil, destruction of terrestrial vegetation, the presence of                                
19 litter and debris, or other appropriate means that consider the characteristics of the                                  
20 surrounding area.                                                                                                       
21  (c)  The Department of Fish and Game shall by regulation establish criteria to                                        
22 be used in determining whether an improvement is effective in accomplishing the                                         
23 purposes listed in (a)(1) or (2) of this section.  Upon application by the owner of land                                
24 or taxable interest in land, the department shall certify whether an improvement meets                                  
25 the criteria established under this subsection.  The department may require submission                                  
26 of plans for approval before construction as a condition of certification.