04/16/2009 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 121(FIN)                                                                                                
                                                                                                                                
     "An   Act   relating   to    and   authorizing   certain                                                                   
     municipalities to provide a property tax credit for an                                                                     
     improvement that aids in improving air quality."                                                                           
                                                                                                                                
9:46:27 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to adopt  Work  Draft  26-LS0540\T,                                                                   
Cook, 4/14/09. Co-Chair Stedman OBJECTED for discussion.                                                                        
                                                                                                                                
DARWIN PETERSON, STAFF, SENATOR  BERT STEDMAN, explained that                                                                   
the CS adds one  section to the bill, section  2. The section                                                                   
provides   a   municipal   tax   exemption   for   non-profit                                                                   
universities.  The municipality must  enact the exemption  by                                                                   
ordinance.  The  provision  would   put  the  Alaska  Pacific                                                                   
University  on   the  same  property   tax  footing   as  the                                                                   
University  of Alaska  in the municipality  of Anchorage.  He                                                                   
referred to  a letter endorsing  the legislation  from former                                                                   
municipal mayor Mark Begich (Copy  on File). In addition, the                                                                   
Anchorage municipal  assembly enacted a resolution  endorsing                                                                   
the measure  (Copy on File).  University of Alaska  president                                                                   
Mark Hamilton  also wrote in support  (Copy on File).  He did                                                                   
not think there was opposition.                                                                                                 
                                                                                                                                
Senator Thomas asked for more  information regarding lines 23                                                                   
to 25 in the CS.                                                                                                                
                                                                                                                                
STEVE  VANSANT,  STATE  ASSESSOR,   DEPARTMENT  OF  COMMERCE,                                                                   
COMMUNITY   AND    ECONOMIC   DEVELOPMENT    (testified   via                                                                   
teleconference), replied that  he had not seen the amendment,                                                                   
although  he  assumed  the  language  was  the  same  as  the                                                                   
language  in  HB  10.  The  language  would  allow  municipal                                                                   
taxation on lands that the universities  may lease to private                                                                   
industry for private business.  He gave an example of how the                                                                   
provision could work.                                                                                                           
                                                                                                                                
9:50:29 AM                                                                                                                    
                                                                                                                                
Senator Huggins  asked if Alaska Pacific University  falls in                                                                   
the category  of property of  a private, nonprofit  four-year                                                                   
college. Mr. VanSant replied in the affirmative.                                                                                
                                                                                                                                
9:51:00 AM     AT EASE                                                                                                        
9:51:13 AM     RECONVENED                                                                                                     
                                                                                                                                
Co-Chair  Stedman removed  his OBJECTION  to the adoption  of                                                                   
the CS. There being NO further  OBJECTION, it was so ordered.                                                                   
                                                                                                                                
Co-Chair  Hoffman MOVED  that the committee  request  a title                                                                   
change resolution  as a title  change would be  needed. There                                                                   
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
KAREN LIDSTER,  STAFF, REPRESENTATIVE JOHN  COGHILL, SPONSOR,                                                                   
explained that  the CS includes  the municipal tax;  when the                                                                   
bill became HB  121, it was a request by the  municipality of                                                                   
Fairbanks  and  an  attempt  to  deal  with  issues  of  non-                                                                   
attainment,  or specifically  air quality  called 2.5PM.  The                                                                   
bill would  allow the  municipalities  to adopt an  ordinance                                                                   
and  provide   a  tax   credit  to   individuals  that   made                                                                   
improvements in heating mechanisms  to help with air quality.                                                                   
The  bill deals  only with  municipalities  that have  within                                                                   
their boundaries  areas that  fail to  meet federal  or state                                                                   
quality standards for fine particulates known as 2.5PM.                                                                         
                                                                                                                                
Co-Chair  Stedman  asked which  municipalities  qualify.  Ms.                                                                   
Lidster  answered that  at this  time  the municipalities  of                                                                   
Fairbanks and Juneau qualify.                                                                                                   
                                                                                                                                
9:54:10 AM                                                                                                                    
                                                                                                                                
MARTY MCGEE,  ASSESSOR, MUNICIPALITY OF ANCHORAGE  (testified                                                                   
via  teleconference), stated  that  he was  surprised by  the                                                                   
amendment  which appears to  carry the  language from  HB 10.                                                                   
He  reported  that  the  municipality  had  worked  with  the                                                                   
committee and  the sponsor to  modify the language in  HB 10.                                                                   
To  the   extent  that   the  language   is  the  same,   the                                                                   
municipality does not object to the proposal.                                                                                   
                                                                                                                                
SHARON  WEDDELTON,  CHIEF  FISCAL  OFFICER,  MUNICIPALITY  OF                                                                   
ANCHORAGE  (testified  via teleconference),  echoed  surprise                                                                   
that the municipality  was not notified about  the amendment.                                                                   
She stated disappointment. She had no additional comments.                                                                      
                                                                                                                                
Co-Chair  Stedman explained  that  things  can, on  occasion,                                                                   
move quickly late in the session.                                                                                               
                                                                                                                                
CS HB  121(FIN) was HEARD and  HELD in Committee  for further                                                                   
consideration.