Legislature(1993 - 1994)
1993-03-31 House Journal
Full Journal pdf1993-03-31 House Journal Page 0875 HB 66 The following, which had been held in second reading from the March 30, 1993, calendar (page 856), was again before the House with Amendment No. 1 (page 855): CS FOR HOUSE BILL NO. 66(FIN) "An Act relating to an exemption from and deferral of municipal property taxes for certain primary residences, to property tax equivalency payments for certain residents, to the determination of full and true value of taxable property in a municipality; and providing for an effective date." Amendment to Amendment No. 1 was offered by Representative Willis: Page 1: Delete "A municipality may charge interest not to exceed five percent a year upon taxes deferred under this section." Insert "A municipality may not charge interest upon taxes deferred under this section for the deferral period." 1993-03-31 House Journal Page 0876 HB 66 Representative Willis moved and asked unanimous consent that the amendment to Amendment No. 1 be adopted. Objection was heard and withdrawn. There being no further objection, it was so ordered. The question being: "Shall Amendment No. 1 as amended be adopted?" The roll was taken with the following result: CSHB 66(FIN) Second Reading Amendment No. 1 as amended YEAS: 33 NAYS: 2 EXCUSED: 0 ABSENT: 5 Yeas: Barnes, Brown, Bunde, Carney, Davies, B.Davis, G.Davis, Finkelstein, Foster, Green, Hanley, Hudson, James, Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder, Navarre, Nicholia, Nordlund, Parnell, Phillips, Porter, Sanders, Sitton, Therriault, Toohey, Ulmer, Williams, Willis Nays: Olberg, Vezey Absent: Brice, Davidson, Grussendorf, Hoffman, Menard And so, Amendment No. 1 as amended was adopted. Representative Mackie placed a call of the House on the amendments. Amendment No. 2 was offered by Representatives Willis and Carney: Page 2, lines 10 - 17: Delete all material. Insert new bill sections to read: "* Sec. 2. AS 29.45.030(e) is amended to read: (e) The real property owned and occupied as the primary residence and permanent place of abode by a resident who is (1) [RESIDENT] 65 years of age or older; or (2) [DISABLED VETERAN; OR (3) RESIDENT] at least 60 years old and [WHO IS] the widow or widower of a person who qualified for an exemption under (1) [OR (2)] of this subsection, is exempt from 1993-03-31 House Journal Page 0877 HB 66 taxation on the first $150,000 of the assessed value of the real property. A municipality may, in case of hardship, provide for exemption beyond the first $150,000 of assessed value in accordance with regulations of the department. Only one exemption may be granted for the same property and, if two or more persons are eligible for an exemption for the same property, the parties shall decide between or among themselves who is to receive the benefit of the exemption. Real property may not be exempted under this subsection if the assessor determines, after notice and hearing to the parties, that the property was conveyed to the applicant primarily for the purpose of obtaining the exemption. The determination of the assessor may be appealed under AS 44.62.560 - 44.62.570. * Sec. 3. AS29.45.030(f) is amended to read: (f) An exemption may not be granted under (e) of this section except upon written application for the exemption on a form approved by the state assessor for use by local assessors. The claimant must file the application no later than January 15, or a date provided by ordinance that is not later than March 31, of the assessment year for which the exemption is sought. The governing body of the municipality for good cause shown may waive during a year the claimant's failure to make timely application for exemption for that year and authorize the assessor to accept the application as if timely filed. The claimant must file a separate application for each assessment year in which the exemption is sought. If an application is filed within the required time and is approved by the assessor, the assessor shall allow an exemption in accordance with the provisions of this section. If a failure to file by January 15, or a date provided by ordinance that is not later than March 31, of the assessment year has been waived as provided in this subsection and the application for exemption is approved, the amount of tax that the claimant has already paid for the assessment year for the property exempted shall be refunded to the claimant. The assessor shall require proof in the form the assessor considers necessary of the right to and amount of an exemption claimed under (e) of this section [, AND SHALL REQUIRE A DISABLED VETERAN CLAIMING AN EXEMPTION UNDER (e) OF THIS SECTION TO PROVIDE EVIDENCE OF THE DISABILITY RATING]. The assessor may require proof under this section at any time. * Sec. 4. AS29.45.040(a) is amended to read: 1993-03-31 House Journal Page 0878 HB 66 (a) A resident of the state who rents a permanent place of abode is eligible for a tax equivalency payment from the state through the department if the resident is at least: (1) [AT LEAST] 65 years old; or (2) [A DISABLED VETERAN; OR (3) AT LEAST] 60 years old and the widow or widower of a person who was eligible for payment under (1) [OR (2)] of this subsection. * Sec. 5. AS29.45.040(d) is amended to read: (d) If two or more persons occupy a residence as tenants, not all of whom are eligible for a tax equivalency payment under this section, the assessor shall determine equitable partial payments to be made to the eligible tenants. However, a tax equivalency payment to an eligible applicant may not be reduced because the spouse is less than 65 years of age [OR IS NOT A DISABLED VETERAN]. If all occupants in a residence are eligible for a tax equivalency payment under this section, the occupants shall decide between and among themselves who [WHICH] shall receive payment. * Sec. 6. AS29.45.050(i) is amended to read: (i) A municipality may by ordinance approved by the voters exempt from taxation the assessed value that exceeds $150,000 of real property owned and occupied as a permanent place of abode by a resident who is at least (1) 65 years of age [OR OLDER]; or (2) [A DISABLED VETERAN, INCLUDING A PERSON WHO WAS DISABLED IN THE LINE OF DUTY WHILE SERVING IN THE ALASKA TERRITORIAL GUARD; OR (3) AT LEAST] 60 years old and a widow or widower of a person who qualified for an exemption under (1) [OR (2)] of this subsection." Renumber the following bill sections accordingly. Page 2, line 21: Delete "65 years of age or older; (2)" Page 2, line 22: Delete "(3)" Insert "(2)" 1993-03-31 House Journal Page 0879 HB 66 Page 2, line 23: Delete "former AS29.45.030(e)" Insert "AS29.45.030(e) before the effective date of this Act" Page 2, line 23: Delete "or (2)" Page 3, lines 13 and 14: Delete "65 years of age or older; (2)" Delete "(3)" Insert "(2)" Page 3, line 15: Delete "former AS29.45.030(e)" Insert "AS29.45.030(e) before the effective date of this Act" Page 3, line 16: Delete "or (2)" Page 4, lines 3 and 4: Delete "AS29.45.030(a)(6), 29.45.030(e), 29.45.030(f), 29.45.030(g), 29.45.030(i), 29.45.040, and 29.45.050(i)" Insert "AS29.45.030(i)(1) and 29.45.040(f)" Representative Willis moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Bunde objected. Representative Willis moved and asked unanimous consent that he be allowed to abstain from voting due to a conflict of interest. Objections were heard and the member was required to vote. Amendment to Amendment No. 2 was offered by Representative Brice: *Sec. 2, line 5: Delete "at least 60 years old and" 1993-03-31 House Journal Page 0880 HB 66 *Sec. 2, lines 8 and 10: Delete "$150,000" Insert ""$100,000" *Sec. 2, line 15: After "parties" Insert "under AS 44.62.350 - AS 44.62.550" *Sec. 2, lines 17 and 19: Delete "assessor" Insert "hearing officer" *Sec. 4, line 7: Delete "60 years old and" *Sec. 6, line 3: Delete "$150,000" Insert "$100,000" *Sec. 6, line 10: Delete "60 years old and" Representative Brice moved and asked unanimous consent that the amendment to Amendment No. 2 be adopted. Representative Bunde objected. The call was satisfied. The question being: "Shall the amendment to Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 66(FIN) am Second Reading Amendment to Amendment No. 2 YEAS: 9 NAYS: 31 EXCUSED: 0 ABSENT: 0 1993-03-31 House Journal Page 0881 HB 66 Yeas: Brice, Carney, Davidson, Davies, Finkelstein, Menard, Navarre, Williams, Willis Nays: Barnes, Brown, Bunde, B.Davis, G.Davis, Foster, Green, Grussendorf, Hanley, Hoffman, Hudson, James, Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder, Nicholia, Nordlund, Olberg, Parnell, Phillips, Porter, Sanders, Sitton, Therriault, Toohey, Ulmer, Vezey And so, the amendment to Amendment No. 2 was not adopted. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 66(FIN) am Second Reading Amendment No. 2 YEAS: 17 NAYS: 23 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Hoffman, Mackie, Menard, Navarre, Nordlund, Sitton, Ulmer, Williams, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James, Kott, Larson, MacLean, Martin, Moses, Mulder, Nicholia, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey And so, Amendment No. 2 was not adopted. Amendment No. 3 was offered by Representatives Willis and Carney: Page 2, lines 10 - 17: Delete all material. Insert new bill sections to read: "* Sec. 2. AS 29.45.030(e) is amended to read: (e) The real property owned and occupied as the primary 1993-03-31 House Journal Page 0882 HB 66 residence and permanent place of abode by a resident who is (1) a [RESIDENT 65 YEARS OF AGE OR OLDER; (2)] disabled veteran; or (2) [(3) RESIDENT] at least 60 years old and [WHO IS] the widow or widower of a person who qualified for an exemption under (1) [OR (2)] of this subsection, is exempt from taxation on the first $150,000 of the assessed value of the real property. A municipality may, in case of hardship, provide for exemption beyond the first $150,000 of assessed value in accordance with regulations of the department. Only one exemption may be granted for the same property and, if two or more persons are eligible for an exemption for the same property, the parties shall decide between or among themselves who is to receive the benefit of the exemption. Real property may not be exempted under this subsection if the assessor determines, after notice and hearing to the parties, that the property was conveyed to the applicant primarily for the purpose of obtaining the exemption. The determination of the assessor may be appealed under AS 44.62.560 - 44.62.570. * Sec. 3. AS29.45.040(a) is amended to read: (a) A resident of the state who rents a permanent place of abode is eligible for a tax equivalency payment from the state through the department if the resident is: (1) [AT LEAST 65 YEARS OLD; (2)] a disabled veteran; or (2) [(3)] at least 60 years old and the widow or widower of a person who was eligible for payment under (1) [OR (2)] of this subsection. * Sec. 4. AS29.45.040(d) is amended to read: (d) If two or more persons occupy a residence as tenants, not all of whom are eligible for a tax equivalency payment under this section, the assessor shall determine equitable partial payments to be made to the eligible tenants. However, a tax equivalency payment to an eligible applicant may not be reduced because the spouse [IS LESS THAN 65 YEARS OF AGE OR] is not a disabled veteran. If all occupants in a residence are eligible for a tax equivalency payment under this section, the occupants shall decide between and among themselves who [WHICH] shall receive payment. * Sec. 5. AS29.45.050(i) is amended to read: (i) A municipality may by ordinance approved by the voters exempt from taxation the assessed value that exceeds $150,000 of 1993-03-31 House Journal Page 0883 HB 66 real property owned and occupied as a permanent place of abode by a resident who is (1) [65 YEARS OF AGE OR OLDER; (2)] a disabled veteran, including a person who was disabled in the line of duty while serving in the Alaska Territorial Guard; or (2) [(3)] at least 60 years old and a widow or widower of a person who qualified for an exemption under (1) [OR (2)] of this subsection." Renumber the following bill sections accordingly. Page 2, lines 21 and 22: Delete "(2) a disabled veteran; or (3)" Insert "or (2)" Page 2, line 23: Delete "former AS29.45.030(e)" Insert "AS29.45.030(e) before the effective date of this Act" Page 2, line 23: Delete "or (2)" Page 3, lines 3 - 7: Delete all material. Page 3, line 8: Delete "(2)" Page 3, line 14: Delete "(2) a disabled veteran, or (3)" Insert "or (2)" Page 3, line 15: Delete "former AS29.45.030(e)" Insert "AS29.45.030(e) before the effective date of this Act" Page 3, line 16: Delete "or (2)" 1993-03-31 House Journal Page 0884 HB 66 Page 3, lines 27 - 31: Delete all material. Page 4, line 1: Delete "(2)" Page 4, lines 3 and 4: Delete all material. Renumber the following bill section accordingly. Representative Willis moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Bunde objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 66(FIN) am Second Reading Amendment No. 3 YEAS: 20 NAYS: 20 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Hoffman, James, Larson, Mackie, Menard, Navarre, Nicholia, Nordlund, Sitton, Ulmer, Williams, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, Kott, MacLean, Martin, Moses, Mulder, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representatives Willis and Carney: Page 1, lines 2 - 3 (title amendment): Delete ", to property tax equivalency payments for certain residents," 1993-03-31 House Journal Page 0885 HB 66 Page 1, lines 3 - 4 (title amendment): Delete ", to the determination of full and true value of taxable property in a municipality" Page 1, line 6, through page 2, line 9: Delete all material. Page 2, line 10: Delete "* Sec. 2." Insert "* Section 1." Renumber the following bill sections accordingly. Page 2, line 18: Delete "new sections" Insert "a new section" Page 2, line 19, through page 3, line 9: Delete all material. Page 3, line 10: Delete "Sec. 29.45.054. OPTIONAL" Insert "Sec. 29.45.052. MANDATORY" Page 3, line 11: Delete "all or part" Insert "the first $150,000" Delete "may be" Insert "is" Page 3, line 12: Delete "by ordinance" 1993-03-31 House Journal Page 0886 HB 66 Page 3, lines 16 - 17: Delete "The deferral may be based upon economic hardship as provided in the ordinance." Page 4, line 4: Delete "29.45.040," Representative Willis moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Phillips objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSHB 66(FIN) am Second Reading Amendment No. 4 YEAS: 15 NAYS: 25 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Menard, Navarre, Nicholia, Nordlund, Sitton, Ulmer, Williams, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Grussendorf, Hanley, Hoffman, Hudson, James, Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey And so, Amendment No. 4 was not adopted. Amendment No. 5 was offered by Representatives Willis and Carney: Page 1, lines 2 - 3 (title amendment): Delete ", to property tax equivalency payments for certain residents," Insert "and" 1993-03-31 House Journal Page 0887 HB 66 Page 3, after line 1: Insert a new subsection to read: "(b) The state shall reimburse a municipality for one-half of the real property tax revenue lost to it as a result of an exemption granted under (a) of this section. However, reimbursement may be made only to the extent that the loss exceeds an exemption that was granted by the municipality, or that on proper application by an individual would have been granted, under AS 29.45.050(a), and no reimbursement may be made for revenue lost as a result of an exemption granted for that portion of the assessed value of real property that exceeds $100,000. If appropriations are not sufficient to fully fund reimbursements under this subsection, the amount available shall be distributed pro rata among eligible municipalities." Reletter the following subsection accordingly. Page 4, line 4: Delete "29.45.040," Representative Willis moved and asked unanimous consent that Amendment No. 5 be adopted. Representative Bunde objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSHB 66(FIN) am Second Reading Amendment No. 5 YEAS: 16 NAYS: 24 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Mackie, Menard, Navarre, Nicholia, Nordlund, Sitton, Williams, Willis 1993-03-31 House Journal Page 0888 HB 66 Nays: Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hoffman, Hudson, James, Kott, Larson, MacLean, Martin, Moses, Mulder, Olberg,Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Ulmer, Vezey And so, Amendment No. 5 was not adopted. Amendment No. 6 was offered by Representative Davies: Page 2, line 25, after "property.": Insert "An ordinance providing for exemption from taxation as described in this section shall be submitted to the voters of the municipality within one year of the effective date of this Act." Representative Davies moved and asked unanimous consent that Amendment No. 6 be adopted. Representative MacLean objected. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: CSHB 66(FIN) am Second Reading Amendment No. 6 YEAS: 16 NAYS: 24 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Hoffman, Mackie, Menard, Navarre, Nordlund, Sitton, Therriault, Ulmer, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Grussendorf, Hanley, Hudson, James, Kott, Larson, MacLean, Martin, Moses, Mulder, Nicholia, Olberg, Parnell, Phillips, Porter, Sanders, Toohey, Vezey, Williams And so, Amendment No. 6 was not adopted. 1993-03-31 House Journal Page 0889 HB 66 Amendment No. 7 was offered by Representatives Brown and Navarre: Page 2, after line 17: Insert a new bill section to read: "* Sec. 4. AS 29.45 is amended by adding a new section to read: Sec. 29.45.042. MANDATORY DEFERRAL FOR CERTAIN RESIDENCES. (a) Payment of taxes on the first $150,000 of the assessed value of real property is deferred if the property is owned and occupied as the primary residence and permanent place of abode by a resident of the state who is eligible under (b) of this section and is (1) 65 years of age or older; (2) a disabled veteran; or (3) at least 60 years old and the widow or widower of an individual who qualified for an exemption under former AS29.45.030(e) or for a deferral under (1) or (2) of this subsection. The taxes become due when the property ceases to be owned by the resident who qualified for the deferral or the spouse if the spouse also qualified for a deferral. Only one deferral may be granted for the same property and, if two or more persons are eligible for a deferral for the same property, the parties shall decide between or among themselves who is to receive the benefit of the deferral. Payment of taxes may not be deferred under this section if the assessor determines, after notice and hearing to the parties, that the property was conveyed to the applicant primarily for the purpose of obtaining the deferral. The determination of the assessor may be appealed under AS44.62.560 - 44.62.570. (b) To qualify for a deferral for a year, the adjusted gross income of an individual for the prior year may not exceed $24,000 if the individual filed a single return, or $36,000 if the individual files jointly with another. The determination of adjusted gross income is based upon the federal income tax return filed by the individual. (c) In this section, (1) "disabled veteran" means a disabled person separated from the military service of the United States under a condition that is not dishonorable, whose disability was incurred or aggravated in the line of duty in the military service of the United States, and whose disability has been rated as 50 percent or more by the branch of service in which that person served or by the Department of Veterans' Affairs; (2) "real property" includes mobile homes, whether 1993-03-31 House Journal Page 0890 HB 66 classified as real or personal property for municipal tax purposes." Renumber the following bill sections accordingly. Representative Brown moved and asked unanimous consent that Amendment No. 7 be adopted. Representative Porter objected. The question being: "Shall Amendment No. 7 be adopted?" The roll was taken with the following result: CSHB 66(FIN) am Second Reading Amendment No. 7 YEAS: 19 NAYS: 21 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Hoffman, Hudson, Mackie, Menard, Navarre, Nicholia, Nordlund, Sitton, Ulmer, Williams, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Hanley, James, Kott, Larson, MacLean, Martin, Moses, Mulder, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey And so, Amendment No. 7 was not adopted.