CSHB 411(CRA): "An Act relating to municipal economic development; relating to municipal tax exemptions and deferrals on economic development property; and relating to economic development."
00 CS FOR HOUSE BILL NO. 411(CRA) 01 "An Act relating to municipal economic development; relating to municipal tax 02 exemptions and deferrals on economic development property; and relating to economic 03 development." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 29.35.110(c) is amended to read: 06 (c) Notwithstanding (a) of this section, a borough that has entered into an 07 agreement with a city located in the borough to cooperatively or jointly provide for 08 economic development may use borough revenue from taxes or funding from other 09 sources [, WHETHER COLLECTED ON AN AREAWIDE OR NONAREAWIDE 10 BASIS,] to carry out the terms of the agreement. 11 * Sec. 2. AS 29.45.050(m) is amended to read: 12 (m) A municipality may by ordinance partially or totally exempt all or some 13 types of economic development property from taxation for a designated period. Except 14 as otherwise provided by an ordinance enacted by the municipality before January 1,
01 2017, a municipality that is a school district may only exempt all or a portion of the 02 amount of taxes that exceeds the amount levied on other property for the school 03 district's required local contribution under AS 14.17.410(b)(2). A municipality may by 04 ordinance permit deferral of payment of taxes on all or some types of economic 05 development property for a designated period. A municipality may [NOT] apply an 06 exemption or deferral under this subsection to taxes levied for special services in a 07 service area that is supervised by a service area board under AS 29.35.460 unless the 08 board objects to the exemption or deferral by resolution adopted not later than 09 30 days after the effective date of the municipal ordinance enacting the tax 10 exemption or deferral. A municipality may adopt an ordinance under this subsection 11 only if, before it is adopted, copies of the proposed ordinance made available at a 12 public hearing on it contain written notice that the ordinance, if adopted, may be 13 repealed by the voters through referendum. An ordinance adopted under this 14 subsection must include specific eligibility requirements and require a written 15 application for each exemption or deferral. [IN THIS SUBSECTION, "ECONOMIC 16 DEVELOPMENT PROPERTY" MEANS REAL OR PERSONAL PROPERTY, 17 INCLUDING DEVELOPED PROPERTY CONVEYED UNDER 43 U.S.C. 1601 ET 18 SEQ. (ALASKA NATIVE CLAIMS SETTLEMENT ACT), 19 (1) TO WHICH ONE OR MORE OF THE FOLLOWING APPLY: 20 (A) THE PROPERTY HAS NOT PREVIOUSLY BEEN 21 TAXED AS REAL OR PERSONAL PROPERTY BY THE MUNICIPALITY; 22 (B) THE PROPERTY IS USED IN A TRADE OR BUSINESS 23 IN A WAY THAT 24 (i) CREATES EMPLOYMENT IN THE 25 MUNICIPALITY; 26 (ii) GENERATES SALES OUTSIDE OF THE 27 MUNICIPALITY OF GOODS OR SERVICES PRODUCED IN THE 28 MUNICIPALITY; OR 29 (iii) MATERIALLY REDUCES THE IMPORTATION 30 OF GOODS OR SERVICES FROM OUTSIDE THE 31 MUNICIPALITY;
01 (C) AN EXEMPTION OR DEFERRAL ON THE PROPERTY 02 ENABLES A SIGNIFICANT CAPITAL INVESTMENT IN PHYSICAL 03 INFRASTRUCTURE THAT 04 (i) EXPANDS THE TAX BASE OF THE 05 MUNICIPALITY; AND 06 (ii) WILL GENERATE PROPERTY TAX REVENUE 07 AFTER THE EXEMPTION EXPIRES; OR 08 (2) THAT HAS NOT BEEN USED IN THE SAME TRADE OR 09 BUSINESS IN ANOTHER MUNICIPALITY FOR AT LEAST SIX MONTHS 10 BEFORE THE APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED; 11 THIS PARAGRAPH DOES NOT APPLY IF THE PROPERTY WAS USED IN THE 12 SAME TRADE OR BUSINESS IN AN AREA THAT HAS BEEN ANNEXED TO 13 THE MUNICIPALITY WITHIN SIX MONTHS BEFORE THE APPLICATION 14 FOR DEFERRAL OR EXEMPTION IS FILED; THIS PARAGRAPH DOES NOT 15 APPLY TO INVENTORIES.] 16 * Sec. 3. AS 29.71.800 is amended by adding a new paragraph to read: 17 (26) "economic development" means an action intended to result in an 18 outcome that causes an increase in, or avoids a decrease of, economic activity, gross 19 domestic product, or the tax base.