CSHB 119(FIN): "An Act relating to a mandatory exemption from municipal property taxes for certain assets of the Alaska Industrial Development and Export Authority; relating to dividends from the Alaska Industrial Development and Export Authority; relating to the meanings of 'mark-to-market fair value,' 'net income,' 'project or development,' and 'unrestricted net income' for purposes of the Alaska Industrial Development and Export Authority; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 119(FIN) 01 "An Act relating to a mandatory exemption from municipal property taxes for certain 02 assets of the Alaska Industrial Development and Export Authority; relating to dividends 03 from the Alaska Industrial Development and Export Authority; relating to the meanings 04 of 'mark-to-market fair value,' 'net income,' 'project or development,' and 'unrestricted 05 net income' for purposes of the Alaska Industrial Development and Export Authority; 06 and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 29.45.030(a) is amended to read: 09 (a) The following property is exempt from general taxation: 10 (1) municipal property, including property held by a public corporation 11 of a municipality, state property, property of the University of Alaska, or land that is 12 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 13 830, 70 Stat. 709, except that
01 (A) a private leasehold, contract, or other interest in the 02 property is taxable to the extent of the interest; however, an interest created 03 by an operating agreement or nonexclusive use agreement between the 04 Alaska Industrial Development and Export Authority and a user of a 05 shipyard or an integrated transportation and port facility, if the shipyard 06 or integrated transportation and port facility is owned by the authority 07 and initially placed in service before January 1, 1999, is taxable only to the 08 extent of, and for the value associated with, those specific improvements 09 used for lodging purposes; 10 (B) notwithstanding any other provision of law, property 11 acquired by an agency, corporation, or other entity of the state through 12 foreclosure or deed in lieu of foreclosure and retained as an investment of a 13 state entity is taxable; this subparagraph does not apply to federal land granted 14 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 15 granted to the university by the state to replace land that had been granted 16 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 17 university under AS 14.40.365; 18 (C) an ownership interest of a municipality in real property 19 located outside the municipality acquired after December 31, 1990, is taxable 20 by another municipality; however, a borough may not tax an interest in real 21 property located in the borough and owned by a city in that borough; 22 (2) household furniture and personal effects of members of a 23 household; 24 (3) property used exclusively for nonprofit religious, charitable, 25 cemetery, hospital, or educational purposes; 26 (4) property of a nonbusiness organization composed entirely of 27 persons with 90 days or more of active service in the armed forces of the United States 28 whose conditions of service and separation were other than dishonorable, or the 29 property of an auxiliary of that organization; 30 (5) money on deposit; 31 (6) the real property of certain residents of the state to the extent and
01 subject to the conditions provided in (e) of this section; 02 (7) real property or an interest in real property that is 03 (A) exempt from taxation under 43 U.S.C. 1620(d), as 04 amended or under 43 U.S.C. 1636(d), as amended; or 05 (B) acquired from a municipality in exchange for land that is 06 exempt from taxation under (A) of this paragraph, and is not developed or 07 made subject to a lease; 08 (8) property of a political subdivision, agency, corporation, or other 09 entity of the United States to the extent required by federal law; except that a private 10 leasehold, contract, or other interest in the property is taxable to the extent of that 11 interest unless the property is located on a military base or installation and the 12 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 13 Privatization Initiative), if [PROVIDED THAT] the leaseholder enters into an 14 agreement to make a payment in lieu of taxes to the political subdivision that has 15 taxing authority; 16 (9) natural resources in place including coal, ore bodies, mineral 17 deposits, and other proven and unproven deposits of valuable materials laid down by 18 natural processes, unharvested aquatic plants and animals, and timber; 19 (10) property not exempt under (3) of this subsection that 20 (A) is owned by a private, nonprofit college or university that is 21 accredited by a regional or national accrediting agency recognized by the 22 Council for Higher Education Accreditation or the United States Department 23 of Education, or both; and 24 (B) was subject to a private leasehold, contract, or other private 25 interest on January 1, 2010, except that a holder of a private leasehold, 26 contract, or other interest in the property shall be taxed to the extent of that 27 interest. 28 * Sec. 2. AS 29.45.030(a), as amended by sec. 1 of this Act, is amended to read: 29 (a) The following property is exempt from general taxation: 30 (1) municipal property, including property held by a public corporation 31 of a municipality, state property, property of the University of Alaska, or land that is
01 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 02 830, 70 Stat. 709, except that 03 (A) a private leasehold, contract, or other interest in the 04 property is taxable to the extent of the interest; [HOWEVER, AN INTEREST 05 CREATED BY AN OPERATING AGREEMENT OR NONEXCLUSIVE 06 USE AGREEMENT BETWEEN THE ALASKA INDUSTRIAL 07 DEVELOPMENT AND EXPORT AUTHORITY AND A USER OF A 08 SHIPYARD OR AN INTEGRATED TRANSPORTATION AND PORT 09 FACILITY, IF THE SHIPYARD OR INTEGRATED TRANSPORTATION 10 AND PORT FACILITY IS OWNED BY THE AUTHORITY AND 11 INITIALLY PLACED IN SERVICE BEFORE JANUARY 1, 1999, IS 12 TAXABLE ONLY TO THE EXTENT OF, AND FOR THE VALUE 13 ASSOCIATED WITH, THOSE SPECIFIC IMPROVEMENTS USED FOR 14 LODGING PURPOSES;] 15 (B) notwithstanding any other provision of law, property 16 acquired by an agency, corporation, or other entity of the state through 17 foreclosure or deed in lieu of foreclosure and retained as an investment of a 18 state entity is taxable; this subparagraph does not apply to federal land granted 19 to the University of Alaska under AS 14.40.380 or 14.40.390, or to other land 20 granted to the university by the state to replace land that had been granted 21 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 22 university under AS 14.40.365; 23 (C) an ownership interest of a municipality in real property 24 located outside the municipality acquired after December 31, 1990, is taxable 25 by another municipality; however, a borough may not tax an interest in real 26 property located in the borough and owned by a city in that borough; 27 (2) household furniture and personal effects of members of a 28 household; 29 (3) property used exclusively for nonprofit religious, charitable, 30 cemetery, hospital, or educational purposes; 31 (4) property of a nonbusiness organization composed entirely of
01 persons with 90 days or more of active service in the armed forces of the United States 02 whose conditions of service and separation were other than dishonorable, or the 03 property of an auxiliary of that organization; 04 (5) money on deposit; 05 (6) the real property of certain residents of the state to the extent and 06 subject to the conditions provided in (e) of this section; 07 (7) real property or an interest in real property that is 08 (A) exempt from taxation under 43 U.S.C. 1620(d), as 09 amended or under 43 U.S.C. 1636(d), as amended; or 10 (B) acquired from a municipality in exchange for land that is 11 exempt from taxation under (A) of this paragraph, and is not developed or 12 made subject to a lease; 13 (8) property of a political subdivision, agency, corporation, or other 14 entity of the United States to the extent required by federal law; except that a private 15 leasehold, contract, or other interest in the property is taxable to the extent of that 16 interest unless the property is located on a military base or installation and the 17 property interest is created under 10 U.S.C. 2871 - 2885 (Military Housing 18 Privatization Initiative), if the leaseholder enters into an agreement to make a payment 19 in lieu of taxes to the political subdivision that has taxing authority; 20 (9) natural resources in place including coal, ore bodies, mineral 21 deposits, and other proven and unproven deposits of valuable materials laid down by 22 natural processes, unharvested aquatic plants and animals, and timber; 23 (10) property not exempt under (3) of this subsection that 24 (A) is owned by a private, nonprofit college or university that is 25 accredited by a regional or national accrediting agency recognized by the 26 Council for Higher Education Accreditation or the United States Department 27 of Education, or both; and 28 (B) was subject to a private leasehold, contract, or other private 29 interest on January 1, 2010, except that a holder of a private leasehold, 30 contract, or other interest in the property shall be taxed to the extent of that 31 interest.
01 * Sec. 3. AS 44.88.088(b)(2) is amended to read: 02 (2) "net income" means the change in net position, or the equivalent 03 term under generally accepted accounting principles, of the revolving fund, the change 04 in net position of the Alaska Industrial Development and Export Authority sustainable 05 energy transmission and supply development fund (AS 44.88.660), or the change in 06 net position of the Arctic infrastructure development fund (AS 44.88.810) as set out in 07 the audited financial statements of the authority for the base fiscal year, excluding 08 amounts attributable to intergovernmental transfers, capital contributions, grants, [OR 09 IMPAIRMENT] losses on a project or development to the extent 10 [DEVELOPMENT PROJECTS] financed with state or federal grants or 11 appropriations, mark-to-market fair value based accounting entries, and noncash 12 accounting entries related to retirement obligations [UNDER AS 44.88.172]; 13 * Sec. 4. AS 44.88.088(b)(3) is amended to read: 14 (3) "unrestricted net income" means the unrestricted change in net 15 position, or the equivalent term under generally accepted accounting principles, of the 16 revolving fund, the Alaska Industrial Development and Export Authority sustainable 17 energy transmission and supply development fund (AS 44.88.660), or the Arctic 18 infrastructure development fund (AS 44.88.810) as set out in the audited financial 19 statements of the authority for the base fiscal year, excluding amounts attributable to 20 intergovernmental transfers, capital contributions, grants, [OR IMPAIRMENT] losses 21 on a project or development to the extent [DEVELOPMENT PROJECTS] financed 22 with state or federal grants or appropriations, mark-to-market fair value based 23 accounting entries, and noncash accounting entries related to retirement 24 obligations [UNDER AS 44.88.172]. 25 * Sec. 5. AS 44.88.088(b) is amended by adding new paragraphs to read: 26 (4) "mark-to-market fair value" means fixing the value of an 27 investment as its market value as of the financial reporting date; 28 (5) "project or development" means 29 (A) an Arctic infrastructure development; 30 (B) a development project; 31 (C) a project; or
01 (D) a qualified energy development. 02 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 RETROACTIVITY. Section 1 of this Act is retroactive to November 30, 2017. 05 * Sec. 7. Sections 1 and 3 - 6 of this Act take effect immediately under AS 01.10.070(c). 06 * Sec. 8. Section 2 of this Act takes effect November 30, 2027.