SB 219: "An Act relating to the limitation on the value of property taxable by a municipality; and providing for an effective date."
00 SENATE BILL NO. 219 01 "An Act relating to the limitation on the value of property taxable by a municipality; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.080(c) is amended to read: 05 (c) A municipality may levy and collect a tax on the full and true value of that 06 portion of taxable property taxable under AS 43.56 as assessed by the Department of 07 Revenue which value, when combined with the value of property otherwise taxable by 08 the municipality, does not exceed the product of the percentage determined in (f) of 09 this section [225 PERCENT] of the average per capita assessed full and true value of 10 property in the state multiplied by the number of residents of the taxing municipality. 11 * Sec. 2. AS 29.45.080 is amended by adding a new subsection to read: 12 (f) The percentage in (c) of this section is based on the total tax rate 13 established by the municipality and levied each year under AS 43.56.010(b) and is as 14 follows:
01 If the tax rate determined under AS 43.56.010(b) is: The percentage is: 02 Not more than 18.0 mills 375 percent 03 More than 18.0 mills but not more than 19.0 mills 300 percent 04 More than 19.0 mills 225 percent 05 * Sec. 3. AS 29.45.090(b) is amended to read: 06 (b) A municipality, or combination of municipalities occupying the same 07 geographical area, in whole or in part, may not levy taxes 08 (1) that will result in tax revenues from all sources exceeding $1,500 a 09 year for each person residing within the municipal boundaries; or 10 (2) on [UPON] value that, when combined with the value of property 11 otherwise taxable by the municipality, exceeds the product of the percentage 12 determined in (e) of this section [225 PERCENT] of the average per capita assessed 13 full and true value of property in the state multiplied by the number of residents of the 14 taxing municipality. 15 * Sec. 4. AS 29.45.090(c) is amended to read: 16 (c) The commissioner shall apportion the lawful levy and equitably divide the 17 tax revenues on the basis of need, services performed, and other considerations in the 18 public interest if two or more municipalities occupying the same geographical area, in 19 whole or in part, attempt to levy a tax 20 (1) the combined levy of which would result in tax revenues from all 21 sources exceeding $1,500 a year for each person residing within the municipal 22 boundaries; or 23 (2) on [UPON] value that, when combined with the value of property 24 otherwise taxable by the municipality, exceeds the product of the percentage 25 determined in (e) of this section [225 PERCENT] of the average per capita assessed 26 full and true value of property in the state multiplied by the number of residents of the 27 taxing municipality. 28 * Sec. 5. AS 29.45.090 is amended by adding a new subsection to read: 29 (e) The percentage in (b) and (c) of this section is based on the total tax rate 30 established by the municipality and levied each year under AS 43.56.010(b) and is as 31 follows:
01 If the tax rate determined under AS 43.56.010(b) is: The percentage is: 02 Not more than 18.0 mills 375 percent 03 More than 18.0 mills but not more than 19.0 mills 300 percent 04 More than 19.0 mills 225 percent 05 * Sec. 6. AS 43.56.010(c) is amended to read: 06 (c) If the total value of assessed property of a municipality taxing under 07 AS 29.45.080(c) exceeds the product of the percentage, as determined in 08 AS 29.45.080(f), [225 PERCENT] of the average per capita assessed full and true 09 value of property in the state, to be determined by the department and reported to each 10 municipality by January 15 of each year, multiplied by the number of residents of the 11 taxing municipality, the department shall designate the portion of the tax base against 12 which the local tax may be applied. 13 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 APPLICABILITY. Sections 1 - 6 of this Act apply to tax years beginning after 16 December 31, 2014. 17 * Sec. 8. This Act takes effect July 1, 2014.