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.