SB 106: "An Act relating to a municipal tax exemption or deferral for economic development property; and relating to a municipal tax exemption for a fire protection system."
00 SENATE BILL NO. 106 01 "An Act relating to a municipal tax exemption or deferral for economic development 02 property; and relating to a municipal tax exemption for a fire protection system." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.050(m) is amended to read: 05 (m) A municipality may by ordinance partially or totally exempt all or some 06 types of economic development property from taxation for a designated period [UP 07 TO FIVE YEARS. THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF 08 THE EXEMPTION UNDER CONDITIONS ESTABLISHED IN THE 09 ORDINANCE. HOWEVER, UNDER A RENEWAL, A MUNICIPALITY THAT IS 10 A SCHOOL DISTRICT MAY ONLY EXEMPT ALL OR A PORTION OF THE 11 AMOUNT OF TAXES THAT EXCEEDS THE AMOUNT LEVIED ON OTHER 12 PROPERTY FOR THE SCHOOL DISTRICT]. A municipality may by ordinance 13 permit deferral of payment of taxes on all or some types of economic development 14 property for a designated period [UP TO FIVE YEARS. THE MUNICIPALITY
01 MAY PROVIDE FOR RENEWAL OF THE DEFERRAL UNDER CONDITIONS 02 ESTABLISHED IN THE ORDINANCE]. A municipality may adopt an ordinance 03 under this subsection only if, before it is adopted, copies of the proposed ordinance 04 made available at a public hearing on it contain written notice that the ordinance, if 05 adopted, may be repealed by the voters through referendum. An ordinance adopted 06 under this subsection must include specific eligibility requirements and require a 07 written application for each exemption or deferral. In this subsection, "economic 08 development property" means real or personal property, including developed property 09 conveyed under 43 U.S.C. 1601 et seq. (Alaska Native Claims Settlement Act) [, 10 THAT] 11 (1) that has not been used in the same trade or business in another 12 municipality for at least six months before the application for deferral or 13 exemption is filed; this paragraph does not apply if the property was used in the 14 same trade or business in an area that has been annexed to the municipality 15 within six months before the application for deferral or exemption is filed; this 16 paragraph does not apply to inventories; or 17 (2) to which one or more of the following applies: 18 (A) the property has not previously been taxed as real or 19 personal property by the municipality; 20 (B) the property [(2)] is used in a trade or business in a way 21 that 22 (i) [(A)] creates employment in the municipality; 23 (ii) [(B)] generates sales outside of the municipality of 24 goods or services produced in the municipality; or 25 (iii) [(C)] materially reduces the importation of goods or 26 services from outside the municipality; 27 (C) an exemption or deferral on the property enables a 28 significant capital investment in physical infrastructure that 29 (i) expands the tax base of the municipality; and 30 (ii) will generate property tax revenue after the 31 exemption expires [AND
01 (3) HAS NOT BEEN USED IN THE SAME TRADE OR BUSINESS 02 IN ANOTHER MUNICIPALITY FOR AT LEAST SIX MONTHS BEFORE THE 03 APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED; THIS 04 PARAGRAPH DOES NOT APPLY IF THE PROPERTY WAS USED IN THE 05 SAME TRADE OR BUSINESS IN AN AREA THAT HAS BEEN ANNEXED TO 06 THE MUNICIPALITY WITHIN SIX MONTHS BEFORE THE APPLICATION 07 FOR DEFERRAL OR EXEMPTION IS FILED; THIS PARAGRAPH DOES NOT 08 APPLY TO INVENTORIES]. 09 * Sec. 2. AS 29.45.050 is amended by adding a new subsection to read: 10 (y) A municipality may by ordinance exempt from taxation up to two percent 11 of the assessed value of a structure if the structure contains a fire protection system 12 that is approved under AS 18.70.081, in operating condition, and incorporated as a 13 fixture or part of the structure. An exemption under this subsection is limited to an 14 amount that does not exceed two percent of the value of the structure based on the 15 assessment 16 (1) for 1981, if the fire protection system was a fixture of the structure 17 on January 1, 1981; or 18 (2) as of January 1 of the year immediately following the installation 19 of the fire protection system, if the fire protection system became a fixture of the 20 structure after January 1, 1981. 21 * Sec. 3. AS 29.45.030(l) is repealed.