SB 87: "An Act relating to the optional exemption from and deferral of payment of municipal taxes on deteriorated property."
00 SENATE BILL NO. 87 01 "An Act relating to the optional exemption from and deferral of payment of municipal 02 taxes on deteriorated property." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.050(o) is amended to read: 05 (o) A municipality may by ordinance partially or totally exempt all or some 06 types of deteriorated property from taxation for up to 10 years beginning on or any 07 time after the day substantial rehabilitation, renovation, demolition, removal, or 08 replacement of any structure on the property begins. A municipality may by ordinance 09 permit deferral of payment of taxes on all or some types of deteriorated property for 10 up to five years beginning on or any time after the day substantial rehabilitation, 11 renovation, demolition, removal, or replacement of any structure on the property 12 begins. However, if the entire ownership of property for which a deferral has been 13 granted is transferred, all tax payments deferred under this subsection are immediately 14 due, and the deferral ends. Otherwise, deferred tax payments become due as specified
01 by the municipality at the time the deferral is granted. The amount deferred each year 02 is a lien on that property for that year. Only one exemption and only one deferral may 03 be granted to the same property under this subsection, and, if an exemption and a 04 deferral are granted to the same property, both may not be in effect on the same 05 portion of the property during the same time. An ordinance adopted under this 06 subsection must include specific eligibility requirements and require a written 07 application for each exemption or deferral. An application for a deferral must specify 08 when payment of taxes for each year of deferral will become due, together with an 09 explanation of the reasons for each proposed date for consideration by the 10 municipality. In this subsection, "deteriorated property" means real property that, 11 either at the time of application for exemption or deferral or at the time of 12 completion of the project for which an exemption or deferral is requested, is 13 (1) residential property located in a deteriorating or deteriorated 14 area with boundaries that have been determined by the municipality, if the 15 property is owned by an entity that owns at least two residential properties and 16 eight or more residential units among those properties in that deteriorating or 17 deteriorated area; or 18 (2) commercial property not used for residential purposes or that is 19 multi-unit residential property with at least eight residential units, and that meets one 20 of the following requirements: 21 (A) [(1)] within the last five years, has been the subject of an 22 order by a government agency requiring environmental remediation of the 23 property or requiring the property to be vacated, condemned, or demolished by 24 reason of noncompliance with laws, ordinances, or regulations; 25 (B) [(2)] has a structure on it not less than 15 years of age that 26 has not undergone substantial rehabilitation, renovation, demolition, removal, 27 or replacement, subject to any conditions prescribed in the ordinance; or 28 (C) [(3)] is located in a deteriorating or deteriorated area with 29 boundaries that have been determined by the municipality.