00                            HOUSE BILL NO. 334                                                                          
01 "An Act relating to an exemption from and deferral of municipal property taxes for                                      
02 certain types of deteriorated property."                                                                                
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 29.45.050(o) is amended to read:                                                                   
05            (o)  A municipality may by ordinance partially or totally exempt all or some                                 
06       types of deteriorated property from taxation for up to 10 years beginning on or any                               
07       time after the day substantial rehabilitation, renovation, demolition, removal, or                                
08       replacement of any structure on the property begins. A municipality may by ordinance                              
09       permit deferral of payment of taxes on all or some types of deteriorated property for                             
10       up to five years beginning on or any time after the day substantial rehabilitation,                               
11       renovation, demolition, removal, or replacement of any structure on the property                              
12       begins. [HOWEVER, IF THE OWNERSHIP OF PROPERTY FOR WHICH A                                                        
13       DEFERRAL HAS BEEN GRANTED IS TRANSFERRED, ALL TAX PAYMENTS                                                        
14       DEFERRED UNDER THIS SUBSECTION ARE IMMEDIATELY DUE AND THE                                                        

01       DEFERRAL ENDS, OR, IF OWNERSHIP OF ANY PART OF THE PROPERTY IS                                                    
02       TRANSFERRED, ALL TAX PAYMENTS ARE IMMEDIATELY DUE.] The                                                           
03       amount deferred each year is a lien on that property for that year. However, tax                              
04       payments deferred under this subsection become due only when the ownership of                                 
05       the property for which a deferral has been granted, or any portion of that                                    
06       property, is transferred. On the date of the transfer, all deferred tax payments                              
07       are immediately due. Only one exemption and only one deferral may be granted to                               
08       the same property under this subsection, and, if an exemption and a deferral are                                  
09       granted to the same property, both may not be in effect on the same portion of the                                
10       property during the same time. An ordinance adopted under this subsection must                                    
11       include specific eligibility requirements and require a written application for each                              
12       exemption or deferral. An exemption or deferral may not be granted under this                                 
13       subsection after July 1, 2010. In this subsection, "deteriorated property" means real                         
14       property that is commercial property not used for residential purposes or that is multi-                          
15       unit residential property with at least eight residential units, and that meets one of the                        
16       following requirements:                                                                                           
17                 (1)  within the last five years, has been the subject of an order by a                                  
18       government agency requiring environmental remediation of the property or requiring                                
19       the property to be vacated, condemned, or demolished by reason of noncompliance                                   
20       with laws, ordinances, or regulations;                                                                            
21                 (2)  has a structure on it not less than 15 years of age that has                                       
22       undergone substantial rehabilitation, renovation, demolition, removal, or replacement,                            
23       subject to any conditions prescribed in the ordinance; or                                                         
24                 (3)  is located in a deteriorating or deteriorated area with boundaries                                 
25       that have been determined by the municipality.                                                                    
26    * Sec. 2. Section 2, ch. 8, SLA 1999, as amended by sec. 1, ch. 102, SLA 2002, and by sec.                         
27 4, ch. 140, SLA 2004, is repealed.