SCS HB 148(STA): "An Act relating to service areas in second class boroughs; relating to a municipal tax exemption or deferral for economic development property; relating to a municipal tax exemption for a fire protection system; and providing for an effective date."
00 SENATE CS FOR HOUSE BILL NO. 148(STA) 01 "An Act relating to service areas in second class boroughs; relating to a municipal tax 02 exemption or deferral for economic development property; relating to a municipal tax 03 exemption for a fire protection system; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 29.35.490 is amended by adding a new subsection to read: 06 (d) A second class borough may establish a service area for the provision of 07 emergency services within a state highway corridor if no voters reside in the service 08 area. A second class borough may provide emergency services in a service area 09 established under this subsection by ordinance. Notwithstanding any other provision 10 of law, a second class borough may not authorize or levy a property tax for the 11 provision of emergency services in a service area established under this subsection. 12 The boundaries of a service area established under this subsection may only include 13 the highway corridor and publicly owned property adjacent to the highway corridor 14 necessary to house emergency response equipment and personnel for the service area.
01 * Sec. 2. AS 29.45.050(m) is amended to read: 02 (m) A municipality may by ordinance partially or totally exempt all or some 03 types of economic development property from taxation for a designated period [UP 04 TO FIVE YEARS. THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF 05 THE EXEMPTION UNDER CONDITIONS ESTABLISHED IN THE 06 ORDINANCE. HOWEVER, UNDER A RENEWAL, A MUNICIPALITY THAT IS 07 A SCHOOL DISTRICT MAY ONLY EXEMPT ALL OR A PORTION OF THE 08 AMOUNT OF TAXES THAT EXCEEDS THE AMOUNT LEVIED ON OTHER 09 PROPERTY FOR THE SCHOOL DISTRICT]. A municipality may by ordinance 10 permit deferral of payment of taxes on all or some types of economic development 11 property for a designated period. A municipality may not apply an exemption or 12 deferral under this subsection to taxes levied for special services in a service area 13 that is supervised by a board under AS 29.35.460 [UP TO FIVE YEARS. THE 14 MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE DEFERRAL UNDER 15 CONDITIONS ESTABLISHED IN THE ORDINANCE]. A municipality may adopt 16 an ordinance under this subsection only if, before it is adopted, copies of the proposed 17 ordinance made available at a public hearing on it contain written notice that the 18 ordinance, if adopted, may be repealed by the voters through referendum. An 19 ordinance adopted under this subsection must include specific eligibility requirements 20 and require a written application for each exemption or deferral. In this subsection, 21 "economic development property" means real or personal property, including 22 developed property conveyed under 43 U.S.C. 1601 et seq. (Alaska Native Claims 23 Settlement Act) [, THAT] 24 (1) to which one or more of the following applies: 25 (A) the property has not previously been taxed as real or 26 personal property by the municipality; 27 (B) the property [(2)] is used in a trade or business in a way 28 that 29 (i) [(A)] creates employment in the municipality; 30 (ii) [(B)] generates sales outside of the municipality of 31 goods or services produced in the municipality; or
01 (iii) [(C)] materially reduces the importation of goods or 02 services from outside the municipality; 03 (C) an exemption or deferral on the property enables a 04 significant capital investment in physical infrastructure that 05 (i) expands the tax base of the municipality; and 06 (ii) will generate property tax revenue after the 07 exemption expires; or 08 (2) that [AND (3)] has not been used in the same trade or business in 09 another municipality for at least six months before the application for deferral or 10 exemption is filed; this paragraph does not apply if the property was used in the same 11 trade or business in an area that has been annexed to the municipality within six 12 months before the application for deferral or exemption is filed; this paragraph does 13 not apply to inventories. 14 * Sec. 3. AS 29.45.050 is amended by adding a new subsection to read: 15 (y) A municipality may by ordinance exempt from taxation up to two percent 16 of the assessed value of a structure if the structure contains a fire protection system 17 that is approved under AS 18.70.081, in operating condition, and incorporated as a 18 fixture or part of the structure. An exemption under this subsection is limited to an 19 amount that does not exceed two percent of the value of the structure based on the 20 assessment 21 (1) for 1981, if the fire protection system was a fixture of the structure 22 on January 1, 1981; or 23 (2) as of January 1 of the year immediately following the installation 24 of the fire protection system, if the fire protection system became a fixture of the 25 structure after January 1, 1981. 26 * Sec. 4. AS 29.45.030(l) is repealed. 27 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).