00SENATE CS FOR HOUSE BILL NO. 272(RLS)                                                                                 
01 "An Act relating to the tax assessment by a home rule or general law                                                    
02 municipality of housing that qualifies for the low-income housing credit under the                                      
03 Internal Revenue Code; and providing for an effective date."                                                            
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  AS 29.45.110 is amended by adding a new subsection to read:                                          
06  (d)  The provisions of this subsection apply to determine the full and true value                                     
07 of property that qualifies for a low-income housing credit under 26 U.S.C. 42:                                          
08   (1)  when the assessor acts to determine the full and true value of                                                  
09 property that qualifies for a low-income housing credit under 26 U.S.C. 42, instead of                                  
10 assessing the property under (a) of this section, the assessor shall base assessment of                                 
11 the value of the property on the actual income derived from the property and may not                                    
12 adjust it based on the amount of any federal income tax credit given for the property;                                  
13 for property the full and true value of which is to be determined under this paragraph,                                 
14 to secure an assessment under this subsection, an owner of property that qualifies for                                  

01 the low-income housing credit shall apply to the assessor before May 15 of each year                                    
02 in which the assessment is desired; the property owner shall submit the application on                                  
03 forms prescribed by the assessor and shall include information that may reasonably be                                   
04 required to determine the entitlement of the applicant;                                                                 
05   (2)  the governing body of the municipality shall determine by ordinance                                             
06 whether the full and true value of all property within the municipality that first                                      
07 qualifies for a low-income housing credit under 26 U.S.C. 42 on and after the effective                                 
08 date of this subsection shall be exempt from the requirement of assessment under (1)                                    
09 of this subsection; thereafter, for property that first qualifies for a low-income housing                              
10 credit under 26 U.S.C. 42 on and after the effective date of this subsection and that,                                  
11 by ordinance, is exempt from the requirement of mandatory assessment under (1) of                                       
12 this subsection, the governing body                                                                                     
13   (A)  may determine, by parcel, whether the property shall be                                                        
14 assessed under (a) of this section or on the basis of actual income derived from                                        
15 the property without adjustment based on the amount of any federal income tax                                           
16 credit given for the property, as authorized by (1) of this subsection; and                                             
17   (B)  may not, under (A) of this paragraph, change the manner                                                        
18 of assessment of the parcel of property if debt relating to the property incurred                                       
19 in conjunction with the property's qualifying for the low-income housing tax                                            
20 credit remains outstanding.                                                                                             
21    * Sec. 2.  This Act takes effect January 1, 2001.