HB 217: "An Act relating to municipal property assessment and taxation; and providing for an effective date."

00 HOUSE BILL NO. 217 01 "An Act relating to municipal property assessment and taxation; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.090(a) is amended to read: 05 (a) A municipality may not, during a year, levy an ad valorem tax for any 06 purpose in excess of three percent of the assessed value of property in the 07 municipality. [ALL PROPERTY ON WHICH AN AD VALOREM TAX IS LEVIED 08 SHALL BE TAXED AT THE SAME RATE DURING THE YEAR.] 09 * Sec. 2. AS 29.45.110(a) is amended to read: 10 (a) The assessor shall assess property at its full and true value as of January 1 11 of the assessment year, except as provided in this section and in other provisions of 12 state or federal law that require or permit the assessment of property at less than 13 its full and true value [, AS 29.45.060, AND 29.45.230]. The full and true value is 14 the [ESTIMATED] price that the property would bring in an open market on the date

01 of the assessment [AND UNDER THE THEN PREVAILING MARKET 02 CONDITIONS] in a sale between a willing seller and a willing buyer both conversant 03 with the property and with prevailing general price levels. 04 * Sec. 3. AS 29.45.110 is amended by adding a new subsection to read: 05 (e) A municipality may classify, based on use, both real and personal property 06 for the purpose of assessment and taxation and may provide for rates of taxation, 07 assessment standards, or exemptions or partial exemptions from taxation that are 08 different for different classes of property. A municipality may provide limits on 09 assessment and taxation of all or any class of property. The power to classify property 10 and limit assessment and taxation under this subsection may be exercised by ordinance 11 or through initiative or referendum. 12 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 SEVERABILITY. Under AS 01.10.030, the provisions of this Act are independent 15 and severable, and, if any provision of this Act or the applicability of any provision to any 16 person or circumstance is held to be invalid by a court of competent jurisdiction, the 17 remainder of this Act is not affected and shall be given effect to the fullest extent practicable. 18 * Sec. 5. This Act takes effect January 1, 2002.