00                             HOUSE BILL NO. 217                                                                          
01 "An Act relating to municipal property assessment and taxation; and providing for an                                    
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.45.090(a) is amended to read:                                                                  
05            (a)  A municipality may not, during a year, levy an ad valorem tax for any                                   
06       purpose in excess of three percent of the assessed value of property in the                                       
07       municipality.  [ALL PROPERTY ON WHICH AN AD VALOREM TAX IS LEVIED                                                 
08       SHALL BE TAXED AT THE SAME RATE DURING THE YEAR.]                                                                 
09    * Sec. 2.  AS 29.45.110(a) is amended to read:                                                                     
10            (a)  The assessor shall assess property at its full and true value as of January 1                           
11       of the assessment year, except as provided in this section and in other provisions of                         
12       state or federal law that require or permit the assessment of property at less than                           
13       its full and true value [, AS 29.45.060, AND 29.45.230].  The full and true value is                          
14       the [ESTIMATED] price that the property would bring in an open market on the date                             
01       of the assessment [AND UNDER THE THEN PREVAILING MARKET                                                       
02       CONDITIONS] in a sale between a willing seller and a willing buyer both conversant                                
03       with the property and with prevailing general price levels.                                                       
04    * Sec. 3.  AS 29.45.110 is amended by adding a new subsection to read:                                             
05            (e)  A municipality may classify, based on use, both real and personal property                              
06       for the purpose of assessment and taxation and may provide for rates of taxation,                                 
07       assessment standards, or exemptions or partial exemptions from taxation that are                                  
08       different for different classes of property.  A municipality may provide limits on                                
09       assessment and taxation of all or any class of property.  The power to classify property                          
10       and limit assessment and taxation under this subsection may be exercised by ordinance                             
11       or through initiative or referendum.                                                                              
12    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14       SEVERABILITY.  Under AS 01.10.030, the provisions of this Act are independent                                     
15 and severable, and, if any provision of this Act or the applicability of any provision to any                           
16 person or circumstance is held to be invalid by a court of competent jurisdiction, the                                  
17 remainder of this Act is not affected and shall be given effect to the fullest extent practicable.                      
18    * Sec. 5.  This Act takes effect January 1, 2002.