00CS FOR SENATE BILL NO. 240(FIN)                                                                                         
01 "An Act relating to an optional municipal tax credit for costs of certain river                                         
02 habitat protection improvements."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.45 is amended by adding a new section to read:                                                   
05  Sec. 29.45.046.  RIVER HABITAT PROTECTION TAX CREDIT.  (a)  Unless                                                    
06 prohibited by municipal charter, a municipality may by ordinance provide for a river                                    
07 habitat protection credit to be applied to offset a portion of the property taxes due on                                
08 land, or an interest in land taxable under this chapter, upon which an improvement has                                  
09 been constructed that aids in                                                                                           
10   (1)  protecting the Kenai River or a tributary of the Kenai River from                                               
11 degradation of fish habitat due to public or private use; or                                                            
12   (2)  restoring riparian fish habitat along or in the Kenai River or a                                                
13 tributary of the Kenai River that has been damaged by land use practices.                                               
14  (b)  The amount of a river habitat protection credit shall be based upon a                                            

01 percentage of the verifiable costs of the improvement and may not exceed 50 percent                                     
02 of the total amount of taxes levied upon the land or upon the taxable interest in the                                   
03 land during a single tax year, but the credit may be granted for more than one year.                                    
04 The ordinance may limit the availability of a credit to some, but not all types of                                      
05 improvements for which a credit may be granted under this section and to some, but                                      
06 not all areas of the municipality.  A credit may only be granted for an improvement                                     
07 that has been constructed in compliance with state and federal laws and certified by                                    
08 the Department of Fish and Game under (c) of this section.  A credit may not be                                         
09 granted for an improvement                                                                                              
10   (1)  required under state or federal law; or                                                                         
11   (2)  located more than 150 feet from the mean high tide line or ordinary                                             
12 high water line; in this paragraph, "ordinary high water line" means that line on the                                   
13 shore of the nontidal portion of a river or stream that reflects the highest level of water                             
14 during an ordinary year and is established by fluctuations of water and indicated by                                    
15 physical characteristics such as a clear, natural line impressed on the bank, shelving,                                 
16 changes in the character of soil, destruction of terrestrial vegetation, the presence of                                
17 litter and debris, or other appropriate means that consider the characteristics of the                                  
18 surrounding area.                                                                                                       
19  (c)  The Department of Fish and Game shall by regulation establish criteria to                                        
20 be used in determining whether an improvement is effective in accomplishing the                                         
21 purposes listed in (a)(1) or (2) of this section.  Upon application by the owner of land                                
22 or taxable interest in land, the Department of Fish and Game shall certify whether an                                   
23 improvement meets the criteria established under this subsection.  The Department of                                    
24 Fish and Game may by regulation establish procedures to be used in applying for                                         
25 certification, and may require submission of plans for approval before construction of                                  
26 an improvement as a condition of certification.