CSHB 370(CRA) am: "An Act relating to military facility zones; and relating to a municipal tax exemption or deferral for economic development property."
00 CS FOR HOUSE BILL NO. 370(CRA) am 01 "An Act relating to military facility zones; and relating to a municipal tax exemption or 02 deferral for economic development property." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 26.30.020(c) is amended to read: 05 (c) The adjutant general shall consider the following factors before 06 designating an area as a military facility zone: 07 (1) whether the proposed military facility zone designation is 08 consistent with the comprehensive plan of the municipality or local zoning 09 ordinances; 10 (2) whether it is feasible to develop sites within the proposed zone for 11 purposes of industrial or economic development, residential use, and workforce 12 training or education beneficial to the facility; 13 (3) whether the municipality has targeted the area for revitalization in a 14 plan or ordinance;
01 (4) the relationship between the area and a military facility subject to 02 realignment or closure under 10 U.S.C. 2687, as amended, or a successor statute or the 03 effect of the realignment or closure on the area; 04 (5) the availability, cost, and condition of existing business and 05 educational facilities to support the military facility or facility of a civilian agency; 06 (6) the difference between the median annual income of residents of 07 the area and the median annual income of residents of the state and region, and the 08 number of residents who receive public assistance; 09 (7) the number of residents of the area who receive unemployment, 10 and the ability of the municipality to improve social and economic conditions of the 11 area; 12 (8) the need for financing for small businesses that would improve 13 social and economic conditions in the area; 14 (9) any plans or financial commitments of municipalities to improve 15 the area; 16 (10) any plans or financial commitments of private entities to improve 17 the area; 18 (11) the municipality's participation in economic development 19 activities, including proposals for public or private development; 20 (12) support from community or business organizations in the area; 21 (13) the availability of workforce readiness programs, including 22 workforce recruiting and training support or educational research and curriculum 23 support in the area; 24 (14) the availability or plans for the creation of workforce housing 25 options for residents of the area; and 26 (15) the fiscal effect on the state if the area were to be designated a 27 military facility zone. 28 * Sec. 2. AS 29.45.050(m) is amended to read: 29 (m) A municipality may by ordinance partially or totally exempt all or some 30 types of economic development property from taxation for up to 20 [FIVE] years. 31 [THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE EXEMPTION
01 UNDER CONDITIONS ESTABLISHED IN THE ORDINANCE. HOWEVER, 02 UNDER A RENEWAL, A MUNICIPALITY THAT IS A SCHOOL DISTRICT 03 MAY ONLY EXEMPT ALL OR A PORTION OF THE AMOUNT OF TAXES 04 THAT EXCEEDS THE AMOUNT LEVIED ON OTHER PROPERTY FOR THE 05 SCHOOL DISTRICT.] A municipality may by ordinance permit deferral of payment 06 of taxes on all or some types of economic development property for up to 20 [FIVE] 07 years. An exemption or deferral authorized by this subsection may not be applied 08 with respect to taxes levied in a service area to fund the special services. [THE 09 MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE DEFERRAL UNDER 10 CONDITIONS ESTABLISHED IN THE ORDINANCE.] A municipality may adopt 11 an ordinance under this subsection only if, before it is adopted, copies of the proposed 12 ordinance made available at a public hearing on it contain written notice that the 13 ordinance, if adopted, may be repealed by the voters through referendum. An 14 ordinance adopted under this subsection must include specific eligibility requirements 15 and require a written application for each exemption or deferral. In this subsection, 16 "economic development property" means real or personal property, including 17 developed property conveyed under 43 U.S.C. 1601 et seq. (Alaska Native Claims 18 Settlement Act) [, THAT] 19 (1) that has not been used in the same trade or business in another 20 municipality for at least six months before the application for deferral or 21 exemption is filed; this paragraph does not apply if the property was used in the 22 same trade or business in an area that has been annexed to the municipality 23 within six months before the application for deferral or exemption is filed; this 24 paragraph does not apply to inventories; or 25 (2) to which one or more of the following applies: 26 (A) the property has not previously been taxed as real or 27 personal property by the municipality; 28 (B) the property [(2)] is used in a trade or business in a way 29 that 30 (i) [(A)] creates employment in the municipality; 31 (ii) [(B)] generates sales outside of the municipality of
01 goods or services produced in the municipality; or 02 (iii) [(C)] materially reduces the importation of goods or 03 services from outside the municipality; 04 (C) an exemption or deferral on the property enables a 05 significant capital investment in physical infrastructure that 06 (i) expands the tax base of the municipality; and 07 (ii) will generate property tax revenue after the 08 exemption expires [AND 09 (3) HAS NOT BEEN USED IN THE SAME TRADE OR BUSINESS 10 IN ANOTHER MUNICIPALITY FOR AT LEAST SIX MONTHS BEFORE THE 11 APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED; THIS 12 PARAGRAPH DOES NOT APPLY IF THE PROPERTY WAS USED IN THE 13 SAME TRADE OR BUSINESS IN AN AREA THAT HAS BEEN ANNEXED TO 14 THE MUNICIPALITY WITHIN SIX MONTHS BEFORE THE APPLICATION 15 FOR DEFERRAL OR EXEMPTION IS FILED; THIS PARAGRAPH DOES NOT 16 APPLY TO INVENTORIES].