00                      CS FOR SENATE BILL NO. 259(L&C)                                                                    
01 "An Act relating to an optional municipal limit to increases of the full and true value of                              
02 property."                                                                                                              
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 29.45.110 is amended by adding a new subsection to read:                                           
05 (f)  A municipality may, by ordinance, prohibit the assessor from increasing                                            
06 the assessed value of property over the previous year's assessed value by a percentage                                  
07 amount. The percentage amount may not be less than three percent nor more than 10                                       
08 percent. Notwithstanding (a) of this section or standards adopted by the department                                     
09 under (e) of this section, the full and true value of property assessed under an                                        
10       ordinance adopted under this subsection is equal to the assessed value. The state may                             
11       not penalize a municipality for adopting an ordinance under this subsection. An                                   
12       ordinance adopted under this subsection                                                                           
13                 (1)  may include other requirements to administer and enforce the                                       
14       ordinance;                                                                                                        
01 (2)  must allow the assessor to increase the assessed value of the                                                      
02 property if the property is improved or ownership of the property is transferred to the                                 
03 estimated price that the property would bring in an open market and under prevailing                                    
04 market conditions in a sale between a willing seller and a willing buyer both                                           
05       conversant with the property and with prevailing general price levels; and                                        
06 (3)  must require the assessor to increase the assessed value of the                                                    
07 property every 10 years to the estimated price that the property would bring in an open                                 
08 market and under prevailing market conditions in a sale between a willing seller and a                                  
09 willing buyer both conversant with the property and with prevailing general price                                       
10       levels.