CSHB 66(HES): "An Act relating to an exemption from and deferral of municipal property taxes for certain primary residences, to property tax equivalency payments for certain residents, to the determination of full and true value of taxable property in a municipality; and providing for an effective date."
00CS FOR HOUSE BILL NO. 66(HES) 01 "An Act relating to an exemption from and deferral of municipal property taxes 02 for certain primary residences, to property tax equivalency payments for certain 03 residents, to the determination of full and true value of taxable property in a 04 municipality; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 14.17.140(a) is amended to read: 07 (a) To determine the amount of local effort under AS 14.17.025 and to aid the 08 department and the legislature in planning, the Department of Community and 09 Regional Affairs, in consultation with the assessor for each district, shall determine the 10 full value of the taxable real and personal property in each city or borough district. 11 If there is no local assessor or current local assessment for a district, then the 12 Department of Community and Regional Affairs shall make the determination of full 13 value from information available. In making the determination, the Department of 14 Community and Regional Affairs shall be guided by AS 29.45.110. However, the
01 value of property exempted under AS 29.45.052 may not be included in the 02 determination. The determination of full value shall be made by October 1 and sent 03 by certified mail, return receipt requested, on or before that date to the president of the 04 school board in each district. Duplicate copies shall be sent to the commissioner. The 05 governing body of a borough or city that is a school district may obtain judicial review 06 of the determination. The superior court may modify the determination of the 07 Department of Community and Regional Affairs only upon a finding of abuse of 08 discretion or upon a finding that there is no substantial evidence to support the 09 determination. 10 * Sec. 2. AS 29.45.030(h) is amended to read: 11 (h) Nothing [EXCEPT AS PROVIDED IN (g) OF THIS SECTION, 12 NOTHING] in (j) [(e) - (j)] of this section affects similar exemptions from property 13 taxes granted by a municipality on September 10, 1972, or prevents a municipality 14 from granting similar exemptions by ordinance as provided in AS 29.45.050. 15 * Sec. 3. AS 29.45.030(k) is amended to read: 16 (k) The department shall adopt regulations to implement the provisions of [(g) 17 AND] (j) of this section. 18 * Sec. 4. AS 29.45 is amended by adding new sections to read: 19 Sec. 29.45.052. OPTIONAL EXEMPTION FOR CERTAIN RESIDENCES. 20 (a) The real property owned and occupied as the primary residence and permanent 21 place of abode by a resident of the state who is (1) 65 years of age or older; (2) a 22 disabled veteran; or (3) at least 60 years old and the widow or widower of a person 23 who qualified for an exemption under former AS 29.45.030(e) or under (1) or (2) of 24 this section, may be exempted by ordinance from taxation on the first $150,000 of the 25 assessed value of the real property. A municipality may, in case of hardship, provide 26 for exemption beyond the first $150,000 of assessed value. Only one exemption may 27 be granted for the same property and, if two or more persons are eligible for an 28 exemption for the same property, the parties shall decide between or among themselves 29 who is to receive the benefit of the exemption. Real property may not be exempted 30 under this subsection if the assessor determines, after notice and hearing to the parties, 31 that the property was conveyed to the applicant primarily for the purpose of obtaining
01 the exemption. The determination of the assessor may be appealed under 02 AS 44.62.560 - 44.62.570. 03 (b) An exemption may not be granted under (a) of this section except upon 04 written application for the exemption. The claimant must file the application no later 05 than January 15, or a date provided by ordinance that is not later than March 31, of 06 the assessment year for which the exemption is sought. The governing body of the 07 municipality for good cause shown may waive during a year the claimant's failure to 08 make timely application for exemption for that year and authorize the assessor to 09 accept the application as if timely filed. The claimant must file a separate application 10 for each assessment year in which the exemption is sought. If an application is filed 11 within the required time and is approved by the assessor, the assessor shall allow an 12 exemption in accordance with the provisions of this section. If a failure to file by 13 January 15, or a date provided by ordinance that is not later than March 31, of the 14 assessment year has been waived as provided in this subsection and the application for 15 exemption is approved, the amount of tax that the claimant has already paid for the 16 assessment year for the property exempted shall be refunded to the claimant. The 17 assessor shall require proof in the form the assessor considers necessary of the right 18 to and amount of an exemption claimed under (a) of this section. The assessor may 19 require proof under this section at any time. 20 (c) In this section, 21 (1) "disabled veteran" means a disabled person separated from the 22 military service of the United States under a condition that is not dishonorable, whose 23 disability was incurred or aggravated in the line of duty in the military service of the 24 United States, and whose disability has been rated as 50 percent or more by the branch 25 of service in which that person served or by the Department of Veterans' Affairs; 26 (2) "real property" includes mobile homes, whether classified as real 27 or personal property for municipal tax purposes. 28 Sec. 29.45.054. OPTIONAL DEFERRAL FOR CERTAIN RESIDENCES. (a) 29 Payment of taxes on the first $150,000 of the assessed value of real property may be 30 deferred by ordinance if the property is owned and occupied as the primary residence 31 and permanent place of abode by a resident of the state who is (1) 65 years of age or
01 older; (2) a disabled veteran; or (3) at least 60 years old and the widow or widower 02 of an individual who qualified for an exemption under former AS 29.45.030(e) or for 03 a deferral under (1) or (2) of this section. The taxes become due when the property 04 ceases to be owned by the resident who qualified for the deferral or the spouse if the 05 spouse also qualified for a deferral. A municipality may, in case of hardship, provide 06 for deferral of payment of taxes beyond the first $150,000 of assessed value. A 07 municipality may charge interest not to exceed five percent a year upon taxes deferred 08 under this section. The accumulated interest may be collected only after the deferral 09 has ended and the taxes become due. Only one deferral may be granted for the same 10 property and, if two or more persons are eligible for a deferral for the same property, 11 the parties shall decide between or among themselves who is to receive the benefit of 12 the deferral. Payment of taxes may not be deferred under this subsection if the 13 assessor determines, after notice and hearing to the parties, that the property was 14 conveyed to the applicant primarily for the purpose of obtaining the deferral. The 15 determination of the assessor may be appealed under AS 44.62.560 - 44.62.570. 16 (b) A deferral may not be granted under (a) of this section except upon written 17 application for the deferral. The claimant must file the application no later than 18 January 15, or a date provided by ordinance that is not later than March 31, of the 19 assessment year for which the deferral is sought. The governing body of the 20 municipality for good cause shown may waive during a year the claimant's failure to 21 make timely application for deferral for that year and authorize the assessor to accept 22 the application as if timely filed. The claimant must file a separate application for 23 each assessment year in which the deferral is sought. If an application is filed within 24 the required time and is approved by the assessor, the assessor shall allow the deferral 25 in accordance with the provisions of this section. If a failure to file by January 15, or 26 a date provided by ordinance that is not later than March 31, of the assessment year 27 has been waived as provided in this subsection and the application for deferral is 28 approved, the amount of tax that the claimant has already paid for the assessment year 29 for the property shall be refunded to the claimant. The assessor shall require proof in 30 the form the assessor considers necessary of the right to and amount of a deferral 31 claimed under (a) of this section. The assessor may require proof under this section
01 at any time. 02 (c) In this section, 03 (1) "disabled veteran" means a disabled person separated from the 04 military service of the United States under a condition that is not dishonorable, whose 05 disability was incurred or aggravated in the line of duty in the military service of the 06 United States, and whose disability has been rated as 50 percent or more by the branch 07 of service in which that person served or by the Department of Veterans' Affairs; 08 (2) "real property" includes mobile homes, whether classified as real 09 or personal property for municipal tax purposes. 10 * Sec. 5. AS 29.45.030(a)(6), 29.45.030(e), 29.45.030(f), 29.45.030(g), 29.45.030(i), 11 29.45.040, and 29.45.050(i) are repealed. 12 * Sec. 6. This Act is retroactive to January 1, 1993. 13 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).