HB 73: "An Act relating to state and local taxation and other state regulation as affected by the Alaska Native Claims Settlement Act, as amended, and related federal statutes; and providing for an effective date."
00HOUSE BILL NO. 73 01 "An Act relating to state and local taxation and other state regulation as affected 02 by the Alaska Native Claims Settlement Act, as amended, and related federal 03 statutes; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 29.45.030(a) is amended to read: 06 (a) The following property is exempt from general taxation: 07 (1) municipal property, including property held by a public corporation 08 of a municipality, or state property, except that 09 (A) a private leasehold, contract, or other interest in the 10 property is taxable to the extent of the interest; 11 (B) notwithstanding any other provision of law, property 12 acquired by an agency, corporation, or other entity of the state through 13 foreclosure or deed in lieu of foreclosure and retained as an investment of a 14 state entity is taxable; this subparagraph does not apply to federal land granted
01 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 02 granted to the university by the state to replace land that had been granted 03 under AS 14.40.380 or 14.40.390; 04 (C) an ownership interest of a municipality in real property 05 located outside the municipality acquired after December 31, 1990, is taxable 06 by another municipality; however, a borough may not tax an interest in real 07 property located in the borough and owned by a city in that borough; 08 (2) household furniture and personal effects of members of a 09 household; 10 (3) property used exclusively for nonprofit religious, charitable, 11 cemetery, hospital, or educational purposes; 12 (4) property of a nonbusiness organization composed entirely of persons 13 with 90 days or more of active service in the armed forces of the United States whose 14 conditions of service and separation were other than dishonorable, or the property of 15 an auxiliary of that organization; 16 (5) money on deposit; 17 (6) the real property of certain residents of the state to the extent and 18 subject to the conditions provided in (e) of this section; 19 (7) real property or an interest in real property that is exempt from 20 taxation under 43 U.S.C. 1620(d), as amended, and 43 U.S.C. 1636(d), as amended; 21 (8) property of a political subdivision, agency, corporation, or other 22 entity of the United States to the extent required by federal law; except that a private 23 leasehold, contract, or other interest in the property is taxable to the extent of that 24 interest; 25 (9) natural resources in place including coal, ore bodies, mineral 26 deposits, and other proven and unproven deposits of valuable materials laid down by 27 natural processes, unharvested aquatic plants and animals, and timber. 28 * Sec. 2. AS 29.45.030(m) is amended to read: 29 (m) For the purpose of determining property exempt under (a)(7) of this 30 section, the following definitions apply to terms used in 43 U.S.C. 1636(d), as 31 amended, [43 U.S.C. 1620(d)] unless superseded by applicable federal law:
01 (1) "developed" means that a purposeful modification of land, or an 02 interest in land, [THE PROPERTY] from its original state that effectuates a condition 03 of gainful and productive present use without further substantial modification has been 04 made; surveying, construction of roads, providing utilities or other similar actions 05 normally considered to be component parts of the development process, but that do not 06 create the condition described in this paragraph, do not constitute a developed state 07 within the meaning of this paragraph; developed land, or an interest in developed 08 land [PROPERTY], in order to remove the exemption, must be developed for purposes 09 other than exploration, and be limited to the smallest practicable tract of the tract 10 [PROPERTY] actually used in the developed state; 11 (2) "exploration" means the examination and investigation of 12 undeveloped land to determine the existence of subsurface nonrenewable resources; 13 (3) "leased" ["LEASE"] means that a grant of primary possession 14 entered into for gainful purposes with a determinable fee remaining in the hands of the 15 grantor has been made; with respect to a lease that conveys rights of exploration and 16 development, this exemption shall continue with respect to that portion of the leased 17 tract that is used solely for the purpose of exploration. 18 * Sec. 3. AS 43.80.015 is amended to read: 19 Sec. 43.80.015. TAXATION UNDER ALASKA NATIVE CLAIMS 20 SETTLEMENT ACT, AS AMENDED [P.L. 92-203]. (a) The receipt of [THE 21 ORIGINAL ISSUE OF] shares of stock in a corporation organized under state 22 [ALASKA] law pursuant to 43 U.S.C. 1601 - 1641, as amended, [THE FEDERAL 23 ALASKA NATIVE CLAIMS SETTLEMENT ACT (P.L. 92-203; 85 STAT. 688; 43 24 U.S.C. 1601 ET SEQ.)] by or on behalf of a Native, as defined in 43 U.S.C. 1602(b), 25 or by or on behalf of a descendant of a Native, as defined in 43 U.S.C. 1602(r), 26 [(AS DEFINED IN THE FEDERAL ACT)] is not subject to any form of state or local 27 taxation. 28 (b) The receipt of land or an interest in it under 43 U.S.C. 1601 - 1641, as 29 amended, [THE FEDERAL ACT] or of cash in order to equalize the values of 30 property exchanged under 43 U.S.C. 1621(f), as amended, [SEC. 22(f) OF THAT 31 ACT] or AS 38.50 is not subject to any form of state or local taxation. The basis for
01 computing gain or loss on subsequent sale or other disposition of this land or interest 02 in land for purposes of a state or local tax imposed on or measured by income shall 03 be determined under 43 U.S.C. 1620(c), as amended [IS THE FAIR VALUE OF 04 THE LAND OR INTEREST IN LAND AT THE TIME OF RECEIPT]. 05 (c) A real property interest conveyed under 43 U.S.C. 1601 - 1641, as 06 amended, [THE FEDERAL ACT], AS 38.50, or AS 38.95.050, including land 07 received in an exchange under 43 U.S.C. 1621(f), as amended, [SEC. 22(f) OF THE 08 FEDERAL ACT] or AS 38.50, to a Native, as defined in 43 U.S.C. 1602(b), 09 [INDIVIDUAL] or to a Native corporation incorporated under state [ALASKA] law 10 pursuant to 43 U.S.C. 1601 - 1641, as amended [THE FEDERAL ACT], which 11 interest is not developed or leased to third parties, is exempt from state and local real 12 property taxes and local assessments to the extent provided in 43 U.S.C. 1620(d), as 13 amended, and 43 U.S.C. 1636(d), as amended [UNTIL DECEMBER 18, 1991]. 14 However, municipal taxes, local real property taxes, or local assessments may, under 15 the laws of the state, be imposed upon leased or developed real property within the 16 jurisdiction of any governmental unit organized under the laws of the state. Easements, 17 rights-of-way, leaseholds, and similar interests in real property may be taxed in 18 accordance with state or local law. All rents, royalties, profits, and other revenues or 19 proceeds derived from property interests are taxable to the same extent as these 20 revenues or proceeds are taxable when received by a non-Native individual or 21 corporation. In 43 U.S.C. 1620(d), as amended, and 43 U.S.C. 1636(d), as amended 22 [SEC. 21(d) OF THE FEDERAL ACT], the exemption of real property interests from 23 local real property taxes includes exemption from local assessments and extends to 24 land received in an exchange under 43 U.S.C. 1621(f), as amended, [SEC. 22(f) OF 25 THE FEDERAL ACT] or AS 38.50. 26 (d) Use of the terms "corporate funds" and "dividends" [,] in 43 U.S.C. 1606(j) 27 and (m), as amended, [SEC. 7(j) AND (m) OF THE FEDERAL ACT,] does not 28 determine whether the money is a dividend, distribution to shareholders, or funds that 29 [WHICH] are property, surplus, or capital of a regional corporation for the purposes 30 of this title, [OR] AS 10.06, or other applicable state law, the provisions of sec. 8, ch. 31 70, SLA 1972 notwithstanding.
01 * Sec. 4. AS 43.80.015 is amended by adding a new subsection to read: 02 (e) In this section, reference to 43 U.S.C. 1601 - 1641, as amended, or to any 03 of those sections includes the amendments and additions to any of those sections that 04 are made by 05 (1) P.L. 96-487 (Alaska National Interest Lands Conservation Act); 06 (2) P.L. 100-241 (Alaska Native Claims Settlement Act Amendments 07 of 1987); and 08 (3) amendments to 43 U.S.C. 1601 - 1641 (Alaska Native Claims 09 Settlement Act, as amended) after December 17, 1991. 10 * Sec. 5. The amendments made to AS 29.45.030(a)(7), amended by sec. 1 of this Act, 11 AS 29.45.030(m), amended by sec. 2 of this Act, AS 43.80.015, amended by sec. 3 of this 12 Act, and AS 43.80.015(e), added by sec. 4 of this Act, are retroactive to December 18, 1991. 13 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).