04/23/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB179 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 134 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | SB 179 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 23, 2024
8:03 a.m.
MEMBERS PRESENT
Representative CJ McCormick, Chair
Representative Kevin McCabe, Vice Chair
Representative Tom McKay
Representative Thomas Baker
Representative Justin Ruffridge
Representative Rebecca Himschoot
Representative Donna Mears
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 179(CRA)
"An Act prohibiting municipalities from levying a tax on the
transfer of real property; prohibiting the state from levying a
tax on the transfer of real property; and relating to municipal
taxation of mobile telecommunications services."
- MOVED HCS CSSB 179(CRA) OUT OF COMMITTEE
HOUSE BILL NO. 134
"An Act prohibiting municipalities from levying a tax on the
transfer of real property; prohibiting the state from levying a
tax on the transfer of real property; and relating to municipal
taxation of mobile telecommunications services."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 179
SHORT TITLE: PROPERTY TRANSFER TAX; MUNI TELECOMM TAX
SPONSOR(s): SENATOR(s) BJORKMAN
01/16/24 (S) PREFILE RELEASED 1/12/24
01/16/24 (S) READ THE FIRST TIME - REFERRALS
01/16/24 (S) CRA
02/15/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
02/15/24 (S) Heard & Held
02/15/24 (S) MINUTE(CRA)
02/22/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
02/22/24 (S) Moved CSSB 179(CRA) Out of Committee
02/22/24 (S) MINUTE(CRA)
03/04/24 (S) CRA RPT CS 4DP SAME TITLE
03/04/24 (S) DP: DUNBAR, GRAY-JACKSON, GIESSEL,
BJORKMAN
04/03/24 (S) TRANSMITTED TO (H)
04/03/24 (S) VERSION: CSSB 179(CRA)
04/05/24 (H) READ THE FIRST TIME - REFERRALS
04/05/24 (H) CRA
04/23/24 (H) CRA AT 8:00 AM BARNES 124
WITNESS REGISTER
No witnesses to record
ACTION NARRATIVE
8:03:06 AM
CHAIR MCCORMICK called the House Community and Regional Affairs
Standing Committee meeting to order at 8:03 a.m.
Representatives McKay, Baker, Ruffridge, Himschoot, Mears, and
McCormick were present at the call to order. Representative
McCabe arrived as the meeting was in progress.
SB 179-PROPERTY TRANSFER TAX; MUNI TELECOMM TAX
8:03:56 AM
CHAIR MCCORMICK announced that the only order of business would
be CS FOR SENATE BILL NO. 179(CRA), "An Act prohibiting
municipalities from levying a tax on the transfer of real
property; prohibiting the state from levying a tax on the
transfer of real property; and relating to municipal taxation of
mobile telecommunications services."
8:04:30 AM
The committee took an at-ease from 8:04 a.m. to 8:10 a.m.
8:10:16 AM
CHAIR MCCORMICK gave opening remarks for SB 179 and introduced
invited testifiers to the committee.
8:10:59 AM
}SENATOR JESSE BJORKMAN* Alaska State Legislature* Juneau,
Alaska* As prime sponsor, presented CSSB 179(CRA).{ as prime
sponsor, presented CSSB 179(CRA). He paraphrased the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
Senate Bill 179 is the result of numerous
conversations with realtors from around the state as
well as representatives of municipalities. The
legislation proposes to prohibit municipalities and
the state from imposing a transfer tax, fees or other
assessments on sales, grants assignments or transfer
of real property.
Imposing these taxes increases the cost of purchasing
a home, the largest investment most Alaskans will make
in their lifetime. Increasing the cost of purchasing a
home through implementing transfer fees or taxes
simply increases the upfront cost to those purchases.
Increasing the overall cost to home sellers and buyers
will dampen all home and property sales. The
additional burden of these type of taxes have a
negative impact on young, first time home buyers as
they begin to raise their families. Seniors, on fixed
incomes, lose retirement income as the equity in their
homes are reduced.
We've all been there, struggling to purchase our first
home. With a new spouse and maybe a child or two. Some
of us are moving to larger homes as our family grows.
Others of us are nearing retirement or have retired.
We will all be affected by these taxes.
SB 179 provides relief by ensuring additional charges
to real estate property purchases are not forced on
owners and purchasers.
I respectfully ask for your support of this
legislation for the benefit of home and property
buyers and sellers all across our state.
8:13:13 AM
CHAIR MCCORMICK opened public testimony on CSSB 179(CRA). After
ascertaining that no one wished to testify, he closed public
testimony.
8:13:53 AM
REPRESENTATIVE HIMSCHOOT asked how many states have a similar
tax ban to the one proposed in CSSB 179(CRA).
SENATOR BJORKMAN said he did not know.
REPRESENTATIVE HIMSCHOOT asked whether Alaska Marine Lines (AML)
had taken a position on the proposed legislation.
SENATOR BJORKMAN explained that AML is not in favor of the bill
and pointed out that no transfer tax is currently being
collected.
REPRESENTATIVE HIMSCHOOT commented that transfer taxes in other
states are comparatively small and asked which municipalities
were consulted in regard to CSSB 179(CRA).
SENATOR BJORKMAN answered that his office spoke with the Kenai
Peninsula Borough and said that he couldn't recall anything
further.
8:15:30 AM
REPRESENTATIVE MCCABE asked whether the proposed bill is a
response to a policy in Juneau involving sales prices and
transfer taxes.
SENATOR BJORKMAN said that his understanding is correct.
8:16:21 AM
CHAIR MCCORMICK moved to adopt Amendment 1 to CSSB 19(CRA),
labeled 33-LS1093\B.1, Dunmire, 4/22/24, which read:
Page 2, following line 22:
Insert a new bill section to read:
"* Sec. 9. The uncodified law of the State of
Alaska is amended by adding a new section to read:
APPLICABILITY. AS 29.45.650(l), enacted by sec. 4 of
this Act, and AS 29.45.700(h), enacted by sec. 6 of
this Act, do not apply to an ordinance that
establishes a sales or use tax on the transfer of real
property adopted by a municipality before the
effective date of this Act."
REPRESENTATIVE MCCABE objected.
8:16:36 AM
CHAIR MCCORMICK explained Amendment 1, saying it would create an
exemption for communities that already have a transfer tax in
place.
REPRESENTATIVE MCCABE removed his objection. There being no
further objection, Amendment 1 was adopted.
8:18:00 AM
The committee took a brief at-ease.
8:18:12 AM
REPRESENTATIVE MCCABE moved to report CSSB 179(CRA), as amended,
out of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, HCS CSSB
179(CRA) was reported from the House Community and Regional
Affairs Standing Committee.
8:18:51 AM
The committee took an at-ease from 8:18 a.m. to 8:21 a.m.
8:21:33 AM
CHAIR MCCORMICK gave closing remarks on future committee
business.
8:21:57 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 8:21 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB179 LAA Legal Memo regarding Sect 8 02.19.24.pdf |
HCRA 4/23/2024 8:00:00 AM |
SB 179 |
| SB179 Sectional Summary ver B.pdf |
HCRA 4/23/2024 8:00:00 AM |
SB 179 |
| SB179 Sponsor Statement ver B.pdf |
HCRA 4/23/2024 8:00:00 AM |
SB 179 |
| SB179 Summary of Changes Ver A to Ver B.pdf |
HCRA 4/23/2024 8:00:00 AM |
SB 179 |
| SB179(CRA) ver B.pdf |
HCRA 4/23/2024 8:00:00 AM |
SB 179 |
| HB0134A.pdf |
HCRA 4/23/2024 8:00:00 AM |
HB 134 |
| CSSB 179 (CRA) Amendment 4.22.24.pdf |
HCRA 4/23/2024 8:00:00 AM |
SB 179 |
| CSSB 179 Fiscal Note 4.23.24.pdf |
HCRA 4/23/2024 8:00:00 AM |
SB 179 |