SCS CSHB 10(FIN): "An Act relating to mandatory exemptions from municipal property taxes for certain assets of the Alaska Industrial Development and Export Authority and for property owned by certain private colleges or universities; relating to optional exemptions from municipal property taxes for certain residential property; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 10(FIN) 01 "An Act relating to mandatory exemptions from municipal property taxes for certain 02 assets of the Alaska Industrial Development and Export Authority and for property 03 owned by certain private colleges or universities; relating to optional exemptions from 04 municipal property taxes for certain residential property; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 29.45.030(a) is amended to read: 08 (a) The following property is exempt from general taxation: 09 (1) municipal property, including property held by a public corporation 10 of a municipality, state property, property of the University of Alaska, or land that is 11 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 12 830, 70 Stat. 709, except that 13 (A) a private leasehold, contract, or other interest in the 14 property is taxable to the extent of the interest; however, an interest created 15 by a nonexclusive use agreement between the Alaska Industrial
01 Development and Export Authority and a user of an integrated 02 transportation and port facility owned by the authority and initially 03 placed in service before January 1, 1999, is taxable only to the extent of, 04 and for the value associated with, those specific improvements used for 05 lodging purposes; 06 (B) notwithstanding any other provision of law, property 07 acquired by an agency, corporation, or other entity of the state through 08 foreclosure or deed in lieu of foreclosure and retained as an investment of a 09 state entity is taxable; this subparagraph does not apply to federal land granted 10 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 11 granted to the university by the state to replace land that had been granted 12 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 13 university under AS 14.40.365; 14 (C) an ownership interest of a municipality in real property 15 located outside the municipality acquired after December 31, 1990, is taxable 16 by another municipality; however, a borough may not tax an interest in real 17 property located in the borough and owned by a city in that borough; 18 (2) household furniture and personal effects of members of a 19 household; 20 (3) property used exclusively for nonprofit religious, charitable, 21 cemetery, hospital, or educational purposes; 22 (4) property of a nonbusiness organization composed entirely of 23 persons with 90 days or more of active service in the armed forces of the United States 24 whose conditions of service and separation were other than dishonorable, or the 25 property of an auxiliary of that organization; 26 (5) money on deposit; 27 (6) the real property of certain residents of the state to the extent and 28 subject to the conditions provided in (e) of this section; 29 (7) real property or an interest in real property that is exempt from 30 taxation under 43 U.S.C. 1620(d), as amended; 31 (8) property of a political subdivision, agency, corporation, or other
01 entity of the United States to the extent required by federal law; except that a private 02 leasehold, contract, or other interest in the property is taxable to the extent of that 03 interest unless the property is located on a military base or installation and the 04 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 05 Privatization Initiative), provided that the leaseholder enters into an agreement to 06 make a payment in lieu of taxes to the political subdivision that has taxing authority; 07 (9) natural resources in place including coal, ore bodies, mineral 08 deposits, and other proven and unproven deposits of valuable materials laid down by 09 natural processes, unharvested aquatic plants and animals, and timber; 10 (10) property not exempt under (3) of this subsection that 11 (A) is owned by a private or nonprofit college or university 12 that is accredited by a regional or national accrediting agency recognized 13 by the Council for Higher Education Accreditation or the United States 14 Department of Education, or both; and 15 (B) was subject to a private leasehold, contract, or other 16 private interest on January 1, 2010. 17 * Sec. 2. AS 29.45.030(a), as amended by sec. 1 of this Act, is amended to read: 18 (a) The following property is exempt from general taxation: 19 (1) municipal property, including property held by a public corporation 20 of a municipality, state property, property of the University of Alaska, or land that is 21 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 22 830, 70 Stat. 709, except that 23 (A) a private leasehold, contract, or other interest in the 24 property is taxable to the extent of the interest; [HOWEVER, AN INTEREST 25 CREATED BY A NONEXCLUSIVE USE AGREEMENT BETWEEN THE 26 ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 27 AND A USER OF AN INTEGRATED TRANSPORTATION AND PORT 28 FACILITY OWNED BY THE AUTHORITY AND INITIALLY PLACED IN 29 SERVICE BEFORE JANUARY 1, 1999, IS TAXABLE ONLY TO THE 30 EXTENT OF, AND FOR THE VALUE ASSOCIATED WITH, THOSE 31 SPECIFIC IMPROVEMENTS USED FOR LODGING PURPOSES;]
01 (B) notwithstanding any other provision of law, property 02 acquired by an agency, corporation, or other entity of the state through 03 foreclosure or deed in lieu of foreclosure and retained as an investment of a 04 state entity is taxable; this subparagraph does not apply to federal land granted 05 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 06 granted to the university by the state to replace land that had been granted 07 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 08 university under AS 14.40.365; 09 (C) an ownership interest of a municipality in real property 10 located outside the municipality acquired after December 31, 1990, is taxable 11 by another municipality; however, a borough may not tax an interest in real 12 property located in the borough and owned by a city in that borough; 13 (2) household furniture and personal effects of members of a 14 household; 15 (3) property used exclusively for nonprofit religious, charitable, 16 cemetery, hospital, or educational purposes; 17 (4) property of a nonbusiness organization composed entirely of 18 persons with 90 days or more of active service in the armed forces of the United States 19 whose conditions of service and separation were other than dishonorable, or the 20 property of an auxiliary of that organization; 21 (5) money on deposit; 22 (6) the real property of certain residents of the state to the extent and 23 subject to the conditions provided in (e) of this section; 24 (7) real property or an interest in real property that is exempt from 25 taxation under 43 U.S.C. 1620(d), as amended; 26 (8) property of a political subdivision, agency, corporation, or other 27 entity of the United States to the extent required by federal law; except that a private 28 leasehold, contract, or other interest in the property is taxable to the extent of that 29 interest unless the property is located on a military base or installation and the 30 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 31 Privatization Initiative), provided that the leaseholder enters into an agreement to
01 make a payment in lieu of taxes to the political subdivision that has taxing authority; 02 (9) natural resources in place including coal, ore bodies, mineral 03 deposits, and other proven and unproven deposits of valuable materials laid down by 04 natural processes, unharvested aquatic plants and animals, and timber; 05 (10) property not exempt under (3) of this subsection that 06 (A) is owned by a private or nonprofit college or university that 07 is accredited by a regional or national accrediting agency recognized by the 08 Council for Higher Education Accreditation or the United States Department 09 of Education, or both; and 10 (B) was subject to a private leasehold, contract, or other private 11 interest on January 1, 2010. 12 * Sec. 3. AS 29.45.030(a), as amended by secs. 1 and 2 of this Act, is amended to read: 13 (a) The following property is exempt from general taxation: 14 (1) municipal property, including property held by a public corporation 15 of a municipality, state property, property of the University of Alaska, or land that is 16 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 17 830, 70 Stat. 709, except that 18 (A) a private leasehold, contract, or other interest in the 19 property is taxable to the extent of the interest; 20 (B) notwithstanding any other provision of law, property 21 acquired by an agency, corporation, or other entity of the state through 22 foreclosure or deed in lieu of foreclosure and retained as an investment of a 23 state entity is taxable; this subparagraph does not apply to federal land granted 24 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 25 granted to the university by the state to replace land that had been granted 26 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 27 university under AS 14.40.365; 28 (C) an ownership interest of a municipality in real property 29 located outside the municipality acquired after December 31, 1990, is taxable 30 by another municipality; however, a borough may not tax an interest in real 31 property located in the borough and owned by a city in that borough;
01 (2) household furniture and personal effects of members of a 02 household; 03 (3) property used exclusively for nonprofit religious, charitable, 04 cemetery, hospital, or educational purposes; 05 (4) property of a nonbusiness organization composed entirely of 06 persons with 90 days or more of active service in the armed forces of the United States 07 whose conditions of service and separation were other than dishonorable, or the 08 property of an auxiliary of that organization; 09 (5) money on deposit; 10 (6) the real property of certain residents of the state to the extent and 11 subject to the conditions provided in (e) of this section; 12 (7) real property or an interest in real property that is exempt from 13 taxation under 43 U.S.C. 1620(d), as amended; 14 (8) property of a political subdivision, agency, corporation, or other 15 entity of the United States to the extent required by federal law; except that a private 16 leasehold, contract, or other interest in the property is taxable to the extent of that 17 interest unless the property is located on a military base or installation and the 18 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 19 Privatization Initiative), provided that the leaseholder enters into an agreement to 20 make a payment in lieu of taxes to the political subdivision that has taxing authority; 21 (9) natural resources in place including coal, ore bodies, mineral 22 deposits, and other proven and unproven deposits of valuable materials laid down by 23 natural processes, unharvested aquatic plants and animals, and timber; 24 (10) property not exempt under (3) of this subsection that 25 [(A)] is owned by a private or nonprofit college or university 26 that is accredited by a regional or national accrediting agency recognized by 27 the Council for Higher Education Accreditation or the United States 28 Department of Education, or both, except that a private leasehold, contract, 29 or other interest in the property is taxable to the extent of the private 30 interest [; AND 31 (B) WAS SUBJECT TO A PRIVATE LEASEHOLD,
01 CONTRACT, OR OTHER PRIVATE INTEREST ON JANUARY 1, 2010]. 02 * Sec. 4. AS 29.45.030(e) is amended to read: 03 (e) The real property owned and occupied as the primary residence and 04 permanent place of abode by a [(1)] resident who is (1) 65 years of age or older; (2) a 05 disabled veteran; or (3) [RESIDENT] at least 60 years of age and [OLD WHO IS] the 06 widow or widower of a person who qualified for an exemption under (1) or (2) of this 07 subsection [,] is exempt from taxation on the first $150,000 of the assessed value of 08 the real property. A municipality may by ordinance approved by the voters grant 09 the exemption under this subsection to the widow or widower under 60 years of 10 age of a person who qualified for an exemption under (2) of this subsection. 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 15 among themselves who is to receive the benefit of the exemption. Real property may 16 not be exempted under this subsection if the assessor determines, after notice and 17 hearing to the parties, that the property was conveyed to the applicant primarily for the 18 purpose of obtaining the exemption. The determination of the assessor may be 19 appealed under AS 44.62.560 - 44.62.570. 20 * Sec. 5. AS 29.45 is amended by adding a new section to read: 21 Sec. 29.45.053. Exemption for certain residences of law enforcement 22 officers. (a) A municipality may, by ordinance, provide for the designation of areas 23 within its boundaries that are eligible for tax exemptions on parcels of residential 24 property. The amount of the tax exemption provided in the ordinance may not exceed 25 $150,000 of the assessed value of a parcel. The exemption may be granted for a parcel 26 only if it is 27 (1) entirely within an eligible area; 28 (2) primarily used for residential purposes; and 29 (3) owned and occupied as the primary place of abode by a law 30 enforcement officer. 31 (b) Only one exemption may be granted for the same parcel under an
01 ordinance adopted under (a) of this section, and, if two or more individuals are eligible 02 for an exemption for the same parcel, the individuals shall decide between or among 03 themselves who is to receive the benefit of the exemption. 04 (c) The municipality that adopts the ordinance under (a) of this section may 05 not request state funds to cover any loss of revenue to the municipality caused by the 06 ordinance. 07 (d) The ordinance adopted under (a) of this section must define "law 08 enforcement officer" to include only some or all positions listed in the definition of 09 "peace officer" in AS 01.10.060 or in the definition of "police officer" in 10 AS 18.65.290. The ordinance may include other eligibility requirements for an area; 11 however, an eligible area must 12 (1) meet the eligibility requirements under a federal program of special 13 assistance for urban development, neighborhood revitalization, or law enforcement, 14 without regard to whether an application for the federal assistance on behalf of the 15 area has been made or whether the area has received or is receiving the federal 16 assistance; 17 (2) have a statistically higher occurrence of crime than the 18 municipality as a whole; the crime rate for an eligible area must be established in the 19 ordinance; or 20 (3) meet the requirements of (1) and (2) of this subsection. 21 (e) The municipality may establish a specific area as an eligible area for 22 purposes of this section only in the ordinance adopted under (a) of this section or by 23 adopting a separate ordinance. The municipality is not required to establish as an 24 eligible area for purposes of this section every area that meets the requirements of the 25 ordinance that is adopted under (a) of this section. 26 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 RETROACTIVITY. AS 29.45.030(a)(1)(A), as amended by sec. 1 of this Act, is 29 retroactive to November 30, 2009. 30 * Sec. 7. Sections 1 and 6 of this Act take effect immediately under AS 01.10.070(c). 31 * Sec. 8. Section 2 of this Act takes effect November 30, 2012.
01 * Sec. 9. Section 3 of this Act takes effect December 31, 2035.