00                            SENATE BILL NO. 218                                                                         
01 "An Act relating to the taxation of electric cooperatives; relating to the taxation of                                  
02 electricity generation and electricity storage facilities; and providing for an effective                               
03 date."                                                                                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 10.25.540 is amended by adding a new subsection to read:                                          
06            (c)  An electric cooperative is not subject to state and local ad valorem,                                   
07       income, and excise taxes.                                                                                         
08    * Sec. 2.  AS 10.25.570 is amended to read:                                                                        
09            Sec. 10.25.570. Refund to local governments. The proceeds of the telephone                                 
10 cooperative gross revenue tax [AND THE ELECTRIC COOPERATIVE TAX], less                                                  
11 the amount expended by the state in collecting the tax [THEIR COLLECTION], shall                                    
12 be refunded to an organized borough or a city of any class incorporated under state                                     
13 law, in the proportion that the revenue was earned within the city or the borough area                                  
14 outside the city. However, taxes collected on gross revenue earned by a telephone                                       

01 cooperative [OR ON THE SALE OF ELECTRICITY BY AN ELECTRIC                                                               
02 COOPERATIVE] outside a city or organized borough shall be retained by the state                                         
03       and deposited into its general fund.                                                                            
04    * Sec. 3.  AS 42.45.310(f) is amended to read:                                                                     
05 (f)  Bonds and other obligations issued by the agency and all interest and                                              
06 income from them and all fees, charges, funds, revenue, income, and other money                                         
07 pledged or available to pay or secure the payment of the bonds or obligations or                                        
08 interest on them are exempt from taxation. The real and personal property of the                                        
09 agency and the assets, income, and receipts of the agency are exempt from all taxes                                     
10 and special assessments of the state or a political subdivision of the state [, EXCEPT                                  
11 THAT ELECTRICITY SOLD AT RETAIL BY AN AGENCY IS SUBJECT TO THE                                                          
12       ELECTRIC COOPERATIVE TAX (AS 10.25.540 - 10.25.570)].                                                             
13    * Sec. 4.  AS 43.98.100(a) is amended to read:                                                                     
14 (a)  An electricity generation facility or electricity storage facility that is                                         
15 constructed and placed into service on or after July 1, 2024, is not subject to state and                               
16 local ad valorem, income, and excise taxes if the [ELECTRICITY GENERATION]                                              
17       facility is                                                                                                       
18 (1)  operated by a public utility or joint action agency established under                                              
19       AS 42.45.310; or                                                                                                  
20                 (2)  operated by an entity other than a public utility and provides power                               
21                      (A)  only to a public utility; or                                                          
22 (B)  to an end user who was not receiving electric service                                                          
23            from a public utility on July 1, 2026.                                                                   
24    * Sec. 5.  AS 10.25.540(b)(2), 10.25.555, and 10.25.580 are repealed.                                              
25    * Sec. 6.  This Act takes effect July 1, 2026.