00                             SENATE BILL NO. 4                                                                          
01 "An Act relating to a mandatory exemption from municipal property taxes for certain                                     
02 residences and to an optional exemption from municipal taxes for residential property;                                  
03 and providing for an effective date."                                                                                   
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 29.45.030(e) is amended to read:                                                                  
06            (e)  The real property owned and occupied as the primary residence and                                       
07       permanent place of abode by a (1) resident 65 years of age or older; (2) disabled                                 
08       veteran; or (3) resident at least 60 years old who is the widow or widower of a person                            
09       who qualified for an exemption under (1) or (2) of this subsection [,] is exempt from                             
10       taxation on the first $150,000 of the assessed value of the real property.  A                                     
11       municipality may, in case of hardship, provide for exemption beyond the first                                     
12       $150,000 of assessed value in accordance with regulations of the department.  Only                                
13       one exemption may be granted for the same property and, if two or more persons are                                
14       eligible for an exemption for the same property, the parties shall decide between or                              

01       among themselves who is to receive the benefit of the exemption.  Real property may                               
02       not be exempted under this subsection if the assessor determines, after notice and                                
03       hearing to the parties, that the property was conveyed to the applicant primarily for the                         
04       purpose of obtaining the exemption.  The determination of the assessor may be                                     
05       appealed under AS 44.62.560 - 44.62.570.  If property is transferred during the                               
06       year for which an exemption has been granted under this subsection to a person                                
07       who does not qualify for the exemption, the  exemption ceases on the date of the                              
08       transfer.  The municipality shall calculate a pro rata share of the amount of taxes                           
09       that would have been levied for the year on the property had it not been granted                              
10       an exemption under this subsection and shall notify the new owner of the                                      
11       additional amount of taxes.  Payment of the additional amount of taxes is due 60                              
12       days after the notice is provided to the new owner.                                                           
13    * Sec. 2.  AS 29.45.050(a) is amended to read:                                                                     
14            (a) A municipality may exclude or exempt or partially exempt residential                                     
15       property from taxation by ordinance ratified by the voters at an election.  An exclusion                          
16       or exemption authorized by this subsection [SECTION] may not exceed the assessed                              
17       value of $50,000 [$10,000] for any one residence.                                                             
18    * Sec. 3.  This Act takes effect January 1, 2002.