00                       CS FOR SENATE BILL NO. 136(FIN)                                                                   
01 "An Act relating to an optional exclusion or exemption from municipal taxation for                                      
02 residential property; and relating to an exemption from and deferral of municipal                                       
03 property taxes on certain types of deteriorated property."                                                              
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 29.45.050(a) is amended to read:                                                                  
06            (a)  A municipality may exclude or exempt or partially exempt residential                                    
07       property from taxation by ordinance ratified by the voters at an election.  An                                
08       exclusion or exemption authorized by this subsection may be applied with respect                              
09       to taxes levied in a service area to fund the special services.  An exclusion or                              
10       exemption authorized by this subsection [SECTION] may not exceed the assessed                                 
11       value of $20,000 [$10,000] for any one residence.                                                             
12    * Sec. 2.  AS 29.45.050(o) is amended to read:                                                                     
13            (o)  A municipality may by ordinance partially or totally exempt all or some                                 
14       types of deteriorated property from taxation for up to 10 [FIVE] years beginning on or                        
01       any time after the day substantial rehabilitation, renovation, demolition, removal, or                        
02       replacement of any structure on the property begins.  A municipality may by                                       
03       ordinance permit deferral of payment of taxes on all or some types of deteriorated                                
04       property for up to five years beginning on or any time after the day substantial                                  
05       rehabilitation, renovation, demolition, removal or replacement of any structure on the                        
06       property begins.  However, if the ownership of property for which a deferral has been                             
07       granted is transferred, all tax payments deferred under this subsection are immediately                           
08       due and the deferral ends, or, if ownership of any part of the property is transferred, all                       
09       tax payments are immediately due.  The amount deferred each year is a lien on that                                
10       property for that year.  Only one exemption and only one deferral may be granted to                               
11       the same property under this subsection, and, if an exemption and a deferral are                                  
12       granted to the same property, both may not be in effect on the same portion of the                                
13       property during the same time.  An ordinance adopted under this subsection must                                   
14       include specific eligibility requirements and require a written application for each                              
15       exemption or deferral.  In this subsection, "deteriorated property" means real property                           
16       that is commercial property not used for residential purposes or that is multi-unit                               
17       residential property with at least eight residential units, and that meets one of the                         
18       following requirements:                                                                                       
19                 (1)  within the last five years, has been the subject of an order by a                              
20       government agency requiring environmental remediation of the property or                                      
21       requiring the property to be vacated, condemned, or demolished by reason of                                   
22       noncompliance with laws, ordinances, or regulations;                                                              
23                 (2)  has a structure on it not less than 15 years of age that has                                       
24       undergone substantial rehabilitation, renovation, demolition, removal, or                                     
25       replacement, subject to any conditions prescribed in the ordinance; or                                            
26                 (3)  is located in a deteriorating or deteriorated area with boundaries                                 
27       that have been determined by the municipality.                                                                    
28    * Sec. 3.  The uncodified law of the State of Alaska enacted in sec. 2, ch. 8, SLA 1999, as                        
29 amended by sec. 1, ch. 102, SLA 2002, is amended to read:                                                               
30            Sec. 2.  AS 29.45.050(o) is repealed July 1, 2010 [2006].