00SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 397(JUD)                                                                     
01 "An Act relating to the power to levy property taxes in second class cities."                                           
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 29.45.590 is amended to read:                                                                       
04  Sec. 29.45.590.  LIMITED PROPERTY TAXING POWER FOR SECOND                                                             
05 CLASS CITIES.  A second class city may by referendum levy property taxes as                                           
06 provided for first class cities.  However, levy by a second class city may not exceed                                   
07 two [ONE-HALF OF ONE] percent of the assessed value of the property taxed, except                                     
08 that the limit does not apply to a levy necessary to avoid a default upon payment of                                    
09 principal and interest of bonded or other indebtedness that is secured by a pledge to                                   
10 levy ad valorem or other taxes without limit to meet debt payments.