CSHB 156(CRA): "An Act relating to municipal property tax exemptions; extending a mandatory exemption from municipal property taxes for certain assets of the Alaska Industrial Development and Export Authority; and providing for an effective date by amending the effective dates of sec. 2, ch. 10, SLA 2010, as amended by sec. 4, ch. 61, SLA 2012, and sec. 2, ch. 71, SLA 2010, as amended by sec. 5, ch. 61, SLA 2012."
00 CS FOR HOUSE BILL NO. 156(CRA) 01 "An Act relating to municipal property tax exemptions; extending a mandatory 02 exemption from municipal property taxes for certain assets of the Alaska Industrial 03 Development and Export Authority; and providing for an effective date by amending 04 the effective dates of sec. 2, ch. 10, SLA 2010, as amended by sec. 4, ch. 61, SLA 2012, 05 and sec. 2, ch. 71, SLA 2010, as amended by sec. 5, ch. 61, SLA 2012." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 29.45.030(a) is amended to read: 08 (a) The following property is exempt from general taxation: 09 (1) municipal property, including property held by a public corporation 10 of a municipality, state property, property of the University of Alaska, or land that is 11 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 12 830, 70 Stat. 709, except that 13 (A) a private leasehold, contract, or other interest in the
01 property is taxable to the extent of the interest; however, an interest created by 02 an operating agreement or [A] nonexclusive use agreement between the 03 Alaska Industrial Development and Export Authority and a shipyard operator 04 or a user of an integrated transportation and port facility, if the shipyard or 05 integrated transportation and port facility is owned by the authority and 06 initially placed in service before January 1, 1999, is taxable only to the extent 07 of, and for the value associated with, those specific improvements used for 08 lodging purposes; 09 (B) notwithstanding any other provision of law, property 10 acquired by an agency, corporation, or other entity of the state through 11 foreclosure or deed in lieu of foreclosure and retained as an investment of a 12 state entity is taxable; this subparagraph does not apply to federal land granted 13 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 14 granted to the university by the state to replace land that had been granted 15 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 16 university under AS 14.40.365; 17 (C) an ownership interest of a municipality in real property 18 located outside the municipality acquired after December 31, 1990, is taxable 19 by another municipality; however, a borough may not tax an interest in real 20 property located in the borough and owned by a city in that borough; 21 (2) household furniture and personal effects of members of a 22 household; 23 (3) property used exclusively for nonprofit religious, charitable, 24 cemetery, hospital, or educational purposes; 25 (4) property of a nonbusiness organization composed entirely of 26 persons with 90 days or more of active service in the armed forces of the United States 27 whose conditions of service and separation were other than dishonorable, or the 28 property of an auxiliary of that organization; 29 (5) money on deposit; 30 (6) the real property of certain residents of the state to the extent and 31 subject to the conditions provided in (e) of this section;
01 (7) real property or an interest in real property that is 02 (A) exempt from taxation under 43 U.S.C. 1620(d), as 03 amended or under 43 U.S.C. 1636(d), as amended; or 04 (B) acquired from a municipality in exchange for land that is 05 exempt from taxation under (A) of this paragraph, and is not developed or 06 made subject to a lease; 07 (8) property of a political subdivision, agency, corporation, or other 08 entity of the United States to the extent required by federal law; except that a private 09 leasehold, contract, or other interest in the property is taxable to the extent of that 10 interest unless the property is located on a military base or installation and the 11 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 12 Privatization Initiative), if [PROVIDED THAT] the leaseholder enters into an 13 agreement to make a payment in lieu of taxes to the political subdivision that has 14 taxing authority; 15 (9) natural resources in place including coal, ore bodies, mineral 16 deposits, and other proven and unproven deposits of valuable materials laid down by 17 natural processes, unharvested aquatic plants and animals, and timber; 18 (10) property not exempt under (3) of this subsection that 19 (A) is owned by a private, nonprofit college or university that is 20 accredited by a regional or national accrediting agency recognized by the 21 Council for Higher Education Accreditation or the United States Department 22 of Education, or both; and 23 (B) was subject to a private leasehold, contract, or other private 24 interest on January 1, 2010, except that a holder of a private leasehold, 25 contract, or other interest in the property shall be taxed to the extent of that 26 interest. 27 * Sec. 2. AS 29.45.050(m) is amended to read: 28 (m) A municipality may by ordinance partially or totally exempt all or some 29 types of economic development property from taxation for a designated period. 30 Except as otherwise provided by an ordinance enacted by the municipality before 31 January 1, 2017 [UP TO FIVE YEARS. THE MUNICIPALITY MAY PROVIDE
01 FOR RENEWAL OF THE EXEMPTION UNDER CONDITIONS ESTABLISHED 02 IN THE ORDINANCE. HOWEVER, UNDER A RENEWAL], a municipality that is 03 a school district may only exempt all or a portion of the amount of taxes that exceeds 04 the amount levied on other property for the school district's required local 05 contribution under AS 14.17.410(b)(2) [DISTRICT]. A municipality may by 06 ordinance permit deferral of payment of taxes on all or some types of economic 07 development property for a designated period. A municipality may not apply an 08 exemption or deferral under this subsection to taxes levied for special services in 09 a service area that is supervised by a board under AS 29.35.460 [UP TO FIVE 10 YEARS. THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE 11 DEFERRAL UNDER CONDITIONS ESTABLISHED IN THE ORDINANCE]. A 12 municipality may adopt an ordinance under this subsection only if, before it is 13 adopted, copies of the proposed ordinance made available at a public hearing on it 14 contain written notice that the ordinance, if adopted, may be repealed by the voters 15 through referendum. An ordinance adopted under this subsection must include specific 16 eligibility requirements and require a written application for each exemption or 17 deferral. In this subsection, "economic development property" means real or personal 18 property, including developed property conveyed under 43 U.S.C. 1601 et seq. 19 (Alaska Native Claims Settlement Act) [, THAT] 20 (1) to which one or more of the following applies: 21 (A) the property has not previously been taxed as real or 22 personal property by the municipality; 23 (B) the property [(2)] is used in a trade or business in a way 24 that 25 (i) [(A)] creates employment in the municipality; 26 (ii) [(B)] generates sales outside of the municipality of 27 goods or services produced in the municipality; or 28 (iii) [(C)] materially reduces the importation of goods or 29 services from outside the municipality; 30 (C) an exemption or deferral on the property enables a 31 significant capital investment in physical infrastructure that
01 (i) expands the tax base of the municipality; and 02 (ii) will generate property tax revenue after the 03 exemption expires; or 04 (2) that [AND (3)] has not been used in the same trade or business in 05 another municipality for at least six months before the application for deferral or 06 exemption is filed; this paragraph does not apply if the property was used in the same 07 trade or business in an area that has been annexed to the municipality within six 08 months before the application for deferral or exemption is filed; this paragraph does 09 not apply to inventories. 10 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 REVISOR'S INSTRUCTION. When implementing secs. 2 and 3, ch. 10, SLA 2010, 13 and sec. 2, ch. 71, SLA 2010, the legislature does not intend to retain the amendments to 14 AS 29.45.030(a)(1) made by sec. 1 of this Act, but does intend to retain the amendment to 15 AS 29.45.030(a)(8) made by sec. 1 of this Act. 16 * Sec. 4. Section 8, ch. 10, SLA 2010, as amended by sec. 4, ch. 61, SLA 2012, is amended 17 to read: 18 Sec. 8. Section 2, ch. 10, SLA 2010, takes effect November 30, 2027 [2017]. 19 * Sec. 5. Section 10, ch. 71, SLA 2010, as amended by sec. 5, ch. 61, SLA 2012, is 20 amended to read: 21 Sec. 10. Section 2, ch. 71, SLA 2010, takes effect November 30, 2027 [2017].