SCS CSHB 264(FIN): "An Act relating to municipal taxation of interests in property owned by the Alaska Industrial Development and Export Authority and to the effect of the tax status of that property on the local contribution for public education; allowing a deferral of municipal property taxes on the increase in the value of real property attributable to subdivision of that property; relating to municipal taxation of oil and gas production and pipeline property; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 264(FIN) 01 "An Act relating to municipal taxation of interests in property owned by the Alaska 02 Industrial Development and Export Authority and to the effect of the tax status of that 03 property on the local contribution for public education; allowing a deferral of municipal 04 property taxes on the increase in the value of real property attributable to subdivision of 05 that property; relating to municipal taxation of oil and gas production and pipeline 06 property; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 14.17.410(b) is amended to read: 09 (b) Public school funding consists of state aid, a required local contribution, 10 and eligible federal impact aid determined as follows: 11 (1) state aid equals basic need minus a required local contribution and 12 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 13 obtained under (D) of this paragraph, multiplied by the base student allocation set out 14 in AS 14.17.470; district adjusted ADM is calculated as follows:
01 (A) the ADM of each school in the district is calculated by 02 applying the school size factor to the student count as set out in AS 14.17.450; 03 (B) the number obtained under (A) of this paragraph is 04 multiplied by the district cost factor described in AS 14.17.460; 05 (C) the ADMs of each school in a district, as adjusted 06 according to (A) and (B) of this paragraph, are added; the sum is then 07 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 08 high school vocational education factor set out in AS 14.17.420(a)(3); 09 (D) the number obtained for intensive services under 10 AS 14.17.420(a)(2) and the number obtained for correspondence study under 11 AS 14.17.430 are added to the number obtained under (C) of this paragraph; 12 (E) notwithstanding (A) - (C) of this paragraph, if a school 13 district's ADM adjusted for school size under (A) of this paragraph decreases 14 by five percent or more from one fiscal year to the next fiscal year, the school 15 district may use the last fiscal year before the decrease as a base fiscal year to 16 offset the decrease, according to the following method: 17 (i) for the first fiscal year after the base fiscal year 18 determined under this subparagraph, the school district's ADM adjusted 19 for school size determined under (A) of this paragraph is calculated as 20 the district's ADM adjusted for school size, plus 75 percent of the 21 difference in the district's ADM adjusted for school size between the 22 base fiscal year and the first fiscal year after the base fiscal year; 23 (ii) for the second fiscal year after the base fiscal year 24 determined under this subparagraph, the school district's ADM adjusted 25 for school size determined under (A) of this paragraph is calculated as 26 the district's ADM adjusted for school size, plus 50 percent of the 27 difference in the district's ADM adjusted for school size between the 28 base fiscal year and the second fiscal year after the base fiscal year; 29 (iii) for the third fiscal year after the base fiscal year 30 determined under this subparagraph, the school district's ADM adjusted 31 for school size determined under (A) of this paragraph is calculated as
01 the district's ADM adjusted for school size, plus 25 percent of the 02 difference in the district's ADM adjusted for school size between the 03 base fiscal year and the third fiscal year after the base fiscal year; 04 (F) the method established in (E) of this paragraph is available 05 to a school district for the three fiscal years following the base fiscal year 06 determined under (E) of this paragraph only if the district's ADM adjusted for 07 school size determined under (A) of this paragraph for each fiscal year is less 08 than the district's ADM adjusted for school size in the base fiscal year; 09 (G) the method established in (E) of this paragraph does not 10 apply to a decrease in the district's ADM adjusted for school size resulting 11 from a loss of enrollment that occurs as a result of a boundary change under 12 AS 29; 13 (2) the required local contribution of a city or borough school district is 14 the equivalent of a four mill tax levy on the full and true value of the taxable real and 15 personal property in the district, excluding property owned by the Alaska 16 Industrial Development and Export Authority that is exempt from city or 17 borough tax, as of January 1 of the second preceding fiscal year, as determined by the 18 Department of Commerce, Community, and Economic Development under 19 AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a district's basic need for 20 the preceding fiscal year as determined under (1) of this subsection. 21 * Sec. 2. AS 14.17.410(c) is amended to read: 22 (c) In addition to the local contribution required under (b)(2) of this section, a 23 city or borough school district in a fiscal year may make a local contribution of not 24 more than the greater of 25 (1) the equivalent of a two mill tax levy on the full and true value of 26 the taxable real and personal property in the district, excluding property owned by 27 the Alaska Industrial Development and Export Authority that is exempt from 28 city or borough tax, as of January 1 of the second preceding fiscal year, as 29 determined by the Department of Commerce, Community, and Economic 30 Development under AS 14.17.510 and AS 29.45.110; or 31 (2) 23 percent of the district's basic need for the fiscal year under
01 (b)(1) of this section. 02 * Sec. 3. AS 14.17.490(b) is amended to read: 03 (b) A city or borough school district is not eligible for additional funding 04 authorized under (a) of this section unless, during the fiscal year in which the district 05 receives funding under (a) of this section, the district received a local contribution 06 equal to at least the equivalent of a four mill tax levy on the full and true value of the 07 taxable real and personal property in the district, excluding property owned by the 08 Alaska Industrial Development and Export Authority that is exempt from city or 09 borough tax, as of January 1 of the second preceding fiscal year as determined by the 10 Department of Commerce, Community, and Economic Development under 11 AS 14.17.510 and AS 29.45.110. 12 * Sec. 4. AS 29.45 is amended by adding a new section to read: 13 Sec. 29.45.051. Tax deferral for certain subdivided property. (a) A 14 municipality may by ordinance permit deferral of payment of taxes on all or a portion 15 of the increase in assessed value directly attributable to 16 (1) the subdivision of a single parcel of property into three or more 17 parcels; and 18 (2) any improvements made to the property necessitated by its 19 subdivision. 20 (b) A deferral from taxation allowed under (a) of this section shall be limited 21 to a maximum period of five years. A municipality may by ordinance provide for the 22 deferral of payment of taxes permitted under (a) of this section to be of a shorter 23 duration. 24 (c) Subject to (b) of this section, a municipality may also by ordinance provide 25 that 26 (1) the deferral is terminated when 27 (A) a lot in the subdivision is sold; or 28 (B) a residential or commercial building is built on a lot in the 29 subdivision; or 30 (2) the deferral continues for the unsold lots in the subdivision after 31 (A) a lot in the subdivision is sold; or
01 (B) a residential or commercial building is constructed on a lot 02 in the subdivision. 03 * Sec. 5. AS 29.45.080(a) is amended to read: 04 (a) A municipality may levy and collect taxes on the full and true value of 05 taxable property taxable under AS 43.56 as valued by the Department of Revenue 06 [ONLY BY USING ONE OF THE METHODS SET OUT IN (b) OR (c) OF THIS 07 SECTION]. 08 * Sec. 6. AS 29.45.080(b), 29.45.080(c), 29.45.080(d), 29.45.080(e), 29.45.090(b), 09 29.45.090(c), 29.45.090(d); and AS 43.56.010(c) are repealed. 10 * Sec. 7. This Act takes effect July 1, 2012.