00                      CS FOR SENATE BILL NO. 77(CRA)                                                                    
01 "An Act relating to municipal property tax; and providing for an effective date."                                       
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 29.45.050(m) is amended to read:                                                                   
04 (m)  A municipality may by ordinance partially or totally exempt all or some                                            
05 types of economic development property from taxation for a designated period.                                           
06 [EXCEPT AS OTHERWISE PROVIDED BY AN ORDINANCE ENACTED BY                                                                
07 THE MUNICIPALITY BEFORE JANUARY 1, 2017, A MUNICIPALITY THAT IS                                                         
08 A SCHOOL DISTRICT MAY ONLY EXEMPT ALL OR A PORTION OF THE                                                               
09 AMOUNT OF TAXES THAT EXCEEDS THE AMOUNT LEVIED ON OTHER                                                                 
10 PROPERTY FOR THE SCHOOL DISTRICT'S REQUIRED LOCAL                                                                       
11 CONTRIBUTION UNDER AS 14.17.410(b)(2).] A municipality may by ordinance                                                 
12 permit deferral of payment of taxes on all or some types of economic development                                        
13 property for a designated period. A municipality may apply an exemption or deferral                                     
14 under this subsection to taxes levied for special services in a service area that is                                    
15 supervised by an elected service area board under AS 29.35.460 unless the elected                                       

01 service area board objects to the exemption or deferral by resolution adopted not later                                 
02 than 60 days after the effective date of the municipal ordinance enacting the tax                                       
03 exemption or deferral. A municipality may adopt an ordinance under this subsection                                      
04 only if, before it is adopted, copies of the proposed ordinance made available at a                                     
05 public hearing on it contain written notice that the ordinance, if adopted, may be                                      
06 repealed by the voters through referendum. An ordinance adopted under this                                              
07 subsection must include specific eligibility requirements and require a written                                         
08       application for each exemption or deferral.                                                                       
09    * Sec. 2. AS 29.45 is amended by adding a new section to read:                                                     
10 Sec. 29.45.057. Levy of tax on blighted property. (a) A municipality may                                              
11 levy a tax on real property that the municipality designates as blighted if, before                                     
12       levying the tax, the municipality adopts an ordinance that establishes                                            
13                 (1)  standards for determining whether a property is blighted;                                          
14 (2)  a procedure for designating a property as blighted that provides to                                                
15 the property's owner notice of the proposed designation and an opportunity to                                           
16       challenge the designation at a hearing;                                                                           
17 (3)  the tax rate, not to exceed 50 percent of the annual property tax                                                  
18       assessed on a property, that applies to a property designated as blighted;                                        
19 (4)  standards for remediating or redeveloping a property to remove the                                                 
20       property's designation as blighted; and                                                                           
21 (5)  a reduced tax rate, and the duration of time that the reduced tax rate                                             
22 will apply, for a property that has been remediated or redeveloped to remove the                                        
23       property's designation as blighted.                                                                               
24 (b)  For the owner of a property designated as blighted to qualify for a reduced                                        
25 tax rate established under (a)(5) of this section, the property owner must submit to the                                
26 municipality a plan for remediating or redeveloping the property, the municipality                                      
27       must approve the plan, and the property owner must fulfill the terms of the plan.                                 
28 (c)  An ordinance adopted under (a) of this section may require tax collected                                           
29 under this section to be segregated from other property tax and dedicated to                                            
30       community redevelopment purposes.                                                                                 
31 (d)  A municipality may not levy a tax under this section on the primary                                                

01       residence of an individual.                                                                                       
02    * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).