00                      CS FOR HOUSE BILL NO. 334(FIN)                                                                    
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 entire ownership of property for which a deferral has been                            
13       granted is transferred, all tax payments deferred under this subsection are immediately                           
14       due and the deferral ends. Otherwise, deferred tax payments become due as                                     

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