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

01       not be exempted under this subsection if the assessor determines, after notice and                                
02       hearing to the parties, that the property was conveyed to the applicant primarily for the                         
03       purpose of obtaining the exemption.  The determination of the assessor may be                                     
04       appealed under AS 44.62.560 - 44.62.570.  If property is transferred during the                               
05       year for which an exemption has been granted under this subsection to a person                                
06       who does not qualify for the exemption, the  exemption ceases on the date of the                              
07       transfer.  The municipality shall calculate a pro rata share of the amount of taxes                           
08       that would have been levied for the year on the property had it not been granted                              
09       an exemption under this subsection and shall notify the new owner of the                                      
10       additional amount of taxes.  Payment of the additional amount of taxes is due 60                              
11       days after the notice is provided to the new owner.                                                           
12    * Sec. 2.  This Act takes effect January 1, 2002.