SCS CSHB 66(FIN): "An Act relating to a municipal option for an exemption from and deferral of municipal property taxes for certain primary residences, to a mandatory exemption from 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."
00SENATE CS FOR CS FOR HOUSE BILL NO. 66(FIN) 01 "An Act relating to a municipal option for an exemption from and deferral of 02 municipal property taxes for certain primary residences, to a mandatory exemption 03 from municipal property taxes for certain primary residences, to property tax 04 equivalency payments for certain residents, to the determination of full and true 05 value of taxable property in a municipality; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.17.140(a) is amended to read: 08 (a) To determine the amount of local effort under AS 14.17.025 and to aid the 09 department and the legislature in planning, the Department of Community and 10 Regional Affairs, in consultation with the assessor for each district, shall determine the 11 full value of the taxable real and personal property in each city or borough district. 12 If there is no local assessor or current local assessment for a district, then the 13 Department of Community and Regional Affairs shall make the determination of full 14 value from information available. In making the determination, the Department of
01 Community and Regional Affairs shall be guided by AS 29.45.110. However, the 02 value of property exempted under AS 29.45.052 may not be included in the 03 determination. The determination of full value shall be made by October 1 and sent 04 by certified mail, return receipt requested, on or before that date to the president of the 05 school board in each district. Duplicate copies shall be sent to the commissioner. The 06 governing body of a borough or city that is a school district may obtain judicial review 07 of the determination. The superior court may modify the determination of the 08 Department of Community and Regional Affairs only upon a finding of abuse of 09 discretion or upon a finding that there is no substantial evidence to support the 10 determination. 11 * Sec. 2. AS 29.45.030(e) is amended to read: 12 (e) The real property owned and occupied as the primary residence and 13 permanent place of abode by a resident who is (1) a [RESIDENT 65 YEARS OF 14 AGE OR OLDER; (2)] disabled veteran; or (2) [(3) RESIDENT] at least 60 years old 15 and [WHO IS] the widow or widower of a person who qualified for an exemption 16 under (1) [OR (2)] of this subsection, is exempt from taxation on the first $150,000 17 of the assessed value of the real property. A municipality may, in case of hardship, 18 provide for exemption beyond the first $150,000 of assessed value in accordance with 19 regulations of the department. Only one exemption may be granted for the same 20 property and, if two or more persons are eligible for an exemption for the same 21 property, the parties shall decide between or among themselves who is to receive the 22 benefit of the exemption. Real property may not be exempted under this subsection 23 if the assessor determines, after notice and hearing to the parties, that the property was 24 conveyed to the applicant primarily for the purpose of obtaining the exemption. The 25 determination of the assessor may be appealed under AS 44.62.560 - 44.62.570. 26 * Sec. 3. AS 29.45.040(a) is amended to read: 27 (a) A resident of the state who rents a permanent place of abode is eligible for 28 a tax equivalency payment from the state through the department if the resident is: 29 (1) [AT LEAST 65 YEARS OLD; 30 (2)] a disabled veteran; or 31 (2) [(3)] at least 60 years old and the widow or widower of a person
01 who was eligible for payment under (1) [OR (2)] of this subsection. 02 * Sec. 4. AS 29.45.040(d) is amended to read: 03 (d) If two or more persons occupy a residence as tenants, not all of whom are 04 eligible for a tax equivalency payment under this section, the assessor shall determine 05 equitable partial payments to be made to the eligible tenants. However, a tax 06 equivalency payment to an eligible applicant may not be reduced because the spouse 07 [IS LESS THAN 65 YEARS OF AGE OR] is not a disabled veteran. If all occupants 08 in a residence are eligible for a tax equivalency payment under this section, the 09 occupants shall decide between and among themselves who [WHICH] shall receive 10 payment. 11 * Sec. 5. AS 29.45.050(i) is amended to read: 12 (i) A municipality may by ordinance approved by the voters exempt from 13 taxation the assessed value that exceeds $150,000 of real property owned and occupied 14 as a permanent place of abode by a resident who is 15 (1) [65 YEARS OF AGE OR OLDER; 16 (2)] a disabled veteran, including a person who was disabled in the line 17 of duty while serving in the Alaska Territorial Guard; or 18 (2) [(3)] at least 60 years old and a widow or widower of a person who 19 qualified for an exemption under (1) [OR (2)] of this subsection. 20 * Sec. 6. AS 29.45 is amended by adding new sections to read: 21 Sec. 29.45.052. OPTIONAL EXEMPTION FOR CERTAIN RESIDENCES. 22 (a) The real property owned and occupied as the primary residence and permanent 23 place of abode by a resident of the state who is (1) 65 years of age or older; or (2) at 24 least 60 years old and the widow or widower of a person who qualified for an 25 exemption under former AS 29.45.030(e)(1) before the effective date of this Act or 26 under (1) of this subsection, is exempt from taxation on the first $150,000 of assessed 27 value unless the municipality by ordinance rejects this exemption. 28 (b) If the municipality rejects the exemption under (a) of this section, the 29 municipality may by ordinance exempt from taxation all or part of the assessed value 30 of the real property described in (a) of this section. The exemption under this 31 subsection may be based upon economic hardship as provided in the ordinance.
01 (c) Only one exemption may be granted under (a) or (b) of this section to a 02 qualified resident for one property annually. If two or more persons are eligible for 03 an exemption for the same property, the parties shall decide between or among 04 themselves who is to receive the benefit of the exemption. Real property may not be 05 exempted under this section if the assessor determines, after notice and hearing to the 06 parties, that the property was conveyed to the applicant primarily for the purpose of 07 obtaining the exemption. The determination of the assessor may be appealed under 08 AS 44.62.560 - 44.62.570. 09 (d) In this section, "real property" includes mobile homes, whether classified 10 as real or personal property for municipal tax purposes. 11 Sec. 29.45.054. OPTIONAL DEFERRAL FOR CERTAIN RESIDENCES. (a) 12 Payment of taxes on all or part of the assessed value of real property may be deferred 13 by ordinance if the property is owned and occupied as the primary residence and 14 permanent place of abode by a resident of the state who is (1) 65 years of age or 15 older; or (2) at least 60 years old and the widow or widower of an individual who 16 qualified for an exemption under former AS 29.45.030(e)(1) before the effective date 17 of this Act or for a deferral under (1) of this subsection. The deferral may be based 18 upon economic hardship as provided in the ordinance. The taxes become due when 19 the property ceases to be owned by the resident who qualified for the deferral or the 20 spouse if the spouse also qualified for a deferral. A municipality may not charge 21 interest upon taxes deferred under this section for the deferral period. Only one 22 deferral may be granted to a qualified resident for one property annually. If two or 23 more persons are eligible for a deferral for the same property, the parties shall decide 24 between or among themselves who is to receive the benefit of the deferral. Payment 25 of taxes may not be deferred under this section if the assessor determines, after notice 26 and hearing to the parties, that the property was conveyed to the applicant primarily 27 for the purpose of obtaining the deferral. The determination of the assessor may be 28 appealed under AS 44.62.560 - 44.62.570. 29 (b) In this section, "real property" includes mobile homes, whether classified 30 as real or personal property for municipal tax purposes. 31 * Sec. 7. This Act takes effect January 1, 1994.