SB 33: "An Act exempting a certain gas pipeline with a design capacity of 500,000,000 or more cubic feet of gas a day from the state's oil and gas exploration, production, and pipeline transportation property taxes until the pipeline generates revenue for its owners; and relating to the determination of full and true value for the purpose of determining the amount of required local contribution for public school funding."
00 SENATE BILL NO. 33 01 "An Act exempting a certain gas pipeline with a design capacity of 500,000,000 or more 02 cubic feet of gas a day from the state's oil and gas exploration, production, and pipeline 03 transportation property taxes until the pipeline generates revenue for its owners; and 04 relating to the determination of full and true value for the purpose of determining the 05 amount of required local contribution for public school funding." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.17.510(a) is amended to read: 08 (a) To determine the amount of required local contribution under 09 AS 14.17.410(b)(2) and to aid the department and the legislature in planning, the 10 Department of Commerce, Community, and Economic Development, in consultation 11 with the assessor for each district in a city or borough, shall determine the full and true 12 value of the taxable real and personal property in each district in a city or borough. If 13 there is no local assessor or current local assessment for a city or borough school
01 district, then the Department of Commerce, Community, and Economic Development 02 shall make the determination of full and true value guided by AS 29.45.110 and based 03 on a determination of full and true value made by the state assessor at least every two 04 years using the best information available, including on-site inspections made by the 05 state assessor in each of those districts at least once every four years. For purposes of 06 this subsection, the full and true value of taxable real and personal property in any area 07 detached shall be excluded from the determination of the full and true value of the 08 municipality from which the property was detached for the two years immediately 09 preceding the effective date of the detachment. Also, in making the determination for a 10 municipality that is a school district, or for a city that is within a borough school 11 district, the assessed value of property taxable under AS 43.56 shall be excluded if a 12 tax is not levied under AS 29.45.080 by the municipality that is the school district. The 13 determination of full and true value shall be made by October 1 and sent by certified 14 mail, return receipt requested, on or before that date to the president of the school 15 board in each city or borough school district. Duplicate copies shall be sent to the 16 commissioner. The governing body of a city or borough that is a school district may 17 obtain judicial review of the determination. The superior court may modify the 18 determination of the Department of Commerce, Community, and Economic 19 Development only upon a finding of abuse of discretion or upon a finding that there is 20 no substantial evidence to support the determination. In this subsection, "property 21 taxable under AS 43.56" has the meaning given to "taxable property taxable 22 under AS 43.56" in AS 29.45.080(e). 23 * Sec. 2. AS 29.45.080(e) is amended to read: 24 (e) For purposes of this section, 25 (1) population shall be determined by the commissioner based on the 26 latest statistics of the United States Bureau of the Census or on other reliable 27 population data, and the commissioner shall advise each municipality of its population 28 by January 15 of each year; 29 (2) "taxable property taxable under AS 43.56" includes real and 30 tangible personal property used or committed by contract or other agreement for 31 use in this state primarily in the pipeline transportation of gas that is exempt
01 under AS 43.56.020(d) from the tax imposed under AS 43.56. 02 * Sec. 3. AS 43.56.010(d) is amended to read: 03 (d) Except as provided in (e) of this section, a [A] tax paid to a municipality 04 under AS 29.45.080 before July 1 [OR FORMER AS 29.53.045 ON OR BEFORE 05 JUNE 30] of the tax year shall be credited against the tax levied under (a) of this 06 section for that tax year. Except as provided in (e) of this section, if [IF, 07 HOWEVER,] a tax is not paid to a municipality until after June 30 of the taxable year, 08 the department, upon application, shall refund to the taxpayer the amount of tax paid 09 to the municipality under AS 29.45.080 [OR FORMER AS 29.53.045]. The credit or 10 refund of taxes paid to a municipality may not exceed the total amount of tax levied by 11 the department upon the taxpayer for the tax year, under (a) of this section. 12 * Sec. 4. AS 43.56.010 is amended by adding a new subsection to read: 13 (e) Notwithstanding (d) of this section, a tax paid to a municipality under 14 AS 29.45.080 on property that is exempt under AS 43.56.020(d) from the tax imposed 15 under (a) of this section may not be credited against the tax levied under (a) of this 16 section and may not be refunded to a taxpayer under (d) of this section. 17 * Sec. 5. AS 43.56.020 is amended by adding new subsections to read: 18 (d) Real and tangible personal property used or committed by contract or other 19 agreement for use in this state primarily in the pipeline transportation of gas in a 20 pipeline with a design capacity to transport 500,000,000 or more cubic feet of gas a 21 day to market in the state south of 68 degrees North latitude for sale is exempt from 22 the tax imposed under AS 43.56.010(a) through December 31 of the year in which the 23 first flow of gas in that pipeline generates revenue for the owners of that pipeline. 24 (e) For property that is not used exclusively for or committed by contract or 25 other agreement to the gas pipeline described in (d) of this section, the department 26 shall determine that portion of the full and true value that 27 (1) is not exempt under (d) of this section; and 28 (2) is subject to tax under AS 43.56.010(a). 29 * Sec. 6. AS 43.56.060(a) is amended to read: 30 (a) The department shall assess property for the tax levied under 31 AS 43.56.010(b) and AS 29.45.080 on property used or committed by contract or
01 other agreement for use for the pipeline transportation of gas or unrefined oil or for the 02 production of gas or unrefined oil, including property that is exempt from the tax 03 imposed under AS 43.56.010(a) under AS 43.56.020(d), at its full and true value as 04 of January 1 of the assessment year. 05 * Sec. 7. AS 43.56.070(a) is amended to read: 06 (a) The department may require by notice every person having ownership or 07 control of an interest in property taxable under this chapter or exempt from tax 08 under this chapter under AS 43.56.020(d) to submit a return in the form prescribed 09 by the department, based on property values existing on January 1 of each year, except 10 as otherwise provided in this chapter.