Legislature(2015 - 2016)SENATE FINANCE 532
04/14/2015 09:00 AM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB82 | |
| SB53 | |
| HB146 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 53 | TELECONFERENCED | |
| + | HB 146 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 82 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 146(CRA)
"An Act relating to a municipal tax exemption for
certain subdivided property."
9:49:37 AM
SENATOR CATHY MUNOZ, SPONSOR, explained that HB 146 would
give municipalities the option of exempting the increase
value of a new subdivision until the lot started to sell,
or until a certain time period was met. She related that
the legislation came as a result of a request from the City
and Borough of Juneau to look at ways to encourage new
housing development, especially affordable housing. She
furthered that the legislation would incentivize developers
to develop lands while keeping down the costs of
developments. She explained that currently when a
subdivision plot map was finalized and certified, the
property assessment rose considerably. She stated that the
legislation was a tool that would allow municipalities in
communities with housing shortages to work with the
developer to exempt a portion, or all, of the increased
valuation for a certain time period.
9:51:41 AM
EDRA MORLEDGE, STAFF TO SENATOR KEVIN MEYER, explained that
the amendment to the bill made in the Senate Regional
Affairs Committee would allow for a partial or total
exemption, or deferral of property tax for deteriorated
properties. The amendment clarified that the 8 unit
requirement currently in statute for the rehabilitation of
deteriorated properties could be required at the time of
application for the tax exemption or deferral, or at the
completion of the project. The amendment also allowed for
multiple properties in a designated deteriorated property
area to be considered collectively for the 8 unit minimum.
Finally, the amendment made a technical fix, inserting the
word "not" where it had be omitted prior on Page 2, line
27.
9:53:40 AM
Co-Chair MacKinnon OPENED public testimony.
9:54:25 AM
GABE LAYMAN, GENERAL COUNSEL, COOK INLET HOUSING, ANCHORAGE
(via teleconference), testified in support of the bill. He
asserted the legislation would empower municipalities to
offer certain property tax incentives that would encourage
private developers to proceed with developments in Alaska's
challenging real estate market. He spoke to the positive
impact of the provisions in the bill that pertained to
optional municipal property tax incentives for the
redevelopment of deteriorated properties. He believed that
HB 146 would clarify ambiguous provisions of the existing
state statute, improving its usefulness. He pointed out
that municipalities would need to opt into the program in
order to offer the tool to developers. He shared that once
a municipality opted in, it retained the ability to
evaluate project applications on a case by case basis. He
concluded that the legislation would promote economic
development, further empower municipalities to address
blight and deterioration in a locally controlled manner
without costing the state any money.
9:56:01 AM
CHUCK HOMAN, PRESIDENT, ALASKA STATE HOME BUILDING
ASSOCIATION, EAGLE RIVER (via teleconference), testified in
support of the bill. He noted that his organization had
sent a letter of support (copy on file).
9:56:43 AM
Co-Chair MacKinnon CLOSED public testimony.
9:57:05 AM
Co-Chair MacKinnon asked how the bill might affect the
values across the state in comparison to the state
treasury.
RON BROWN, STATE ASSESSOR, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, ANCHORAGE (via
teleconference), stated that there exemption was optional.
He explained that if a municipality were to adopt the
legislation there would be zero impact to the full value
determination, as an optional exemption the property would
be appraised and reported by the local municipality and
added back into the full value for the community.
Co-Chair MacKinnon asked how the foundation formula would
be effected by the legislation.
Mr. Brown explained that for optional exemptions, the full
value of determination and local school contribution would
be returned to the local community.
9:59:10 AM
Co-Chair MacKinnon asked if whether it would positively or
negatively affect the amount of funding that municipalities
would receive for schools.
Mr. Brown responded that the effect would be neutral.
Co-Chair MacKinnon thought that the committee would need to
hear from the Department of Education on how the bill would
affect the foundation formula.
10:00:03 AM
TERRY HARVEY, STAFF TO REPRESENTATIVE CATHY MUNOZ, assured
the committee that the information concerning the bills
effect on formula funding for education would be provided
to the committee.
CSHB 146(CRA) was HEARD and HELD in committee for further
consideration.
10:00:14 AM
Co-Chair MacKinnon discussed housekeeping.