00                      CS FOR HOUSE BILL NO. 358(CRA)                                                                    
01 "An Act relating to an optional exemption from municipal property taxes for certain                                     
02 land from which timber is harvested and for certain improvements used in or necessary                                   
03 to the harvest of timber; and providing for an effective date."                                                         
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 29.45.050 is amended by adding a new subsection to read:                                          
06            (q)  A municipality may by ordinance partially or totally exempt from taxation                               
07       land from which timber is harvested that is infested by insects or at risk of being                               
08       infested by insects due to an infestation in the area in which the land is located.  A                            
09       municipality may provide that an exemption for land under this subsection applies                                 
10       only to increases in assessed value that result from the timber harvest.  A municipality                          
11       may by ordinance partially or totally exempt from taxation improvements to real                                   
12       property, including personal property affixed to the improvements, if the                                         
13       improvements are                                                                                                  
14                 (1)  located on land from which timber is harvested that is infested by                                 

01       insects or at risk of being infested by insects due to an infestation in the area in which                        
02       the land is located; and                                                                                          
03                 (2)  used for or necessary to the harvest of the timber that is infested by                             
04       insects or in danger of insect infestation.                                                                       
05    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       RETROACTIVE ORDINANCES.  A municipality that adopts an ordinance under                                            
08 AS 29.45.050(q), added by sec. 1 of this Act, may make the ordinance retroactive to                                     
09 January 1, 2001.  The municipality may refund taxes that have already been paid in                                      
10 accordance with the exemption granted under the ordinance.                                                              
11    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
12 read:                                                                                                                   
13       RETROACTIVITY.  Sections 1 and 2 of this Act are retroactive to January 1, 2001.                                  
14    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).