Legislature(2011 - 2012)BARNES 124
04/12/2011 08:30 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB94 | |
| HB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 94 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 170 | TELECONFERENCED | |
HB 170-MUNI TAX EXEMPTION FOR CERTAIN VOLUNTEERS
9:03:28 AM
CHAIR MUNOZ announced that the final order of business would be
HOUSE BILL NO. 170, "An Act relating to municipal property tax
exemptions on residences of certain volunteer emergency services
personnel and the widows and widowers of volunteer emergency
services personnel; and providing for an effective date."
9:03:39 AM
CHAIR MUNOZ informed the committee that the committee substitute
(CS), labeled 27-LS0562\I, Bullard, 4/6/11, includes changes
discussed at the prior meeting.
9:04:15 AM
REPRESENTATIVE ERIC FEIGE, Alaska State Legislature, speaking as
the sponsor of HB 170, directed attention to page 1, line 12,
which changes the language to read: "may by ordinance". The
aforementioned language change implies that municipalities would
have to opt in rather than opt out of the proposed exemption.
The next change is on page 1, lines 12-13, which reduces the
exemption to "the first $150,000 of assessed value". With
regard to the questions concerning what constitutes an "active
volunteer", the language on page 2, lines 7-15, was reworded to
specify what qualifies as a volunteer. The language specifies
that a volunteer is someone who has been a volunteer for at
least two years and meets the standards determined jointly by
the local fire department and the municipality.
9:07:16 AM
REPRESENTATIVE GARDNER asked whether passage of [Version I]
would require an annual application from the volunteer
firefighter or would the individual be grandfathered in after
the initial application. She asked if the application would
require verification of "active" status by a fire department,
emergency medical services, or rescue services entity.
REPRESENTATIVE FEIGE, in response to the first question,
confirmed that a volunteer firefighter would have to apply for
the exemption each year. In further response to Representative
Gardner, Representative Feige related his understanding that the
widow/widower of a volunteer firefighter would have to apply
each year as well.
REPRESENTATIVE GARDNER clarified that she's trying to determine
if a widow would qualify in perpetuity or only for the year
following the change in status to a widow.
REPRESENTATIVE FEIGE related his understanding that a
widow/widower of an individual who was a volunteer firefighter
at the time of his/her death would be eligible for the
exemption.
9:09:13 AM
REPRESENTATIVE GARDNER inquired as to the location of the
language specifying that it's an annual application.
REPRESENTATIVE FEIGE answered page 2, lines 22-23. Furthermore,
the municipality sets terms of the application, and thus the
municipality could require an annual application or an
application that applies indefinitely.
REPRESENTATIVE GARDNER surmised then that there is the potential
for an individual to be a volunteer firefighter for two years,
retire, and have the benefit for 20-30 years.
REPRESENTATIVE FEIGE answered yes, if that's the rule of the
municipality.
9:11:21 AM
REPRESENTATIVE AUSTERMAN told the committee that seniors in
Kodiak have to apply for the senior exemption annually.
9:11:39 AM
REPRESENTATIVE SADDLER asked if the sponsor intends for the
widow/widower to receive the proposed exemption even if he/she
remarries.
REPRESENTATIVE FEIGE said that he hadn't considered that.
REPRESENTATIVE SADDLER asked if the sponsor would entertain a
conceptual amendment such that a widow/widower would receive the
proposed exemption while he/she remains unmarried.
REPRESENTATIVE FEIGE replied that he wouldn't object to such an
amendment.
REPRESENTATIVE SADDLER then clarified that such a change would
mean that the widow/widower of an individual who qualified for
this proposed exemption would no longer qualify for the
exemption if he/she remarried.
REPRESENTATIVE FEIGE remarked that he wasn't sure if one loses
their widow/widower status when one remarries.
9:13:00 AM
REPRESENTATIVE CISSNA, drawing from her experience, commented
that a widow/widower's situation changes once he/she remarries
and the widow/widower has knowledge of the impending change.
She opined that the municipalities should have something to say
about exemptions that result in one party bringing a benefit to
the marriage.
REPRESENTATIVE FEIGE said that he didn't disagree, adding that
the language in Version I is flexible enough to allow
municipalities to address such situations.
9:14:03 AM
REPRESENTATIVE GARDNER asked if [volunteer firefighters] who
receive a stipend per call or a pension benefit are considered
volunteers under the definition in Version I.
REPRESENTATIVE FEIGE explained that in the fire service
[volunteer firefighters who receive compensation] are referred
to as paid on-call volunteers. Again, the municipality would
determine the definition of an "active volunteer."
9:14:49 AM
REPRESENTATIVE GARDNER recalled being told that there are 2,000
volunteer firefighters statewide. However, the definition of
"volunteer" per AS 18.15.250(d)(1) would seem to increase the
number of eligible individuals. The definition of "volunteer"
per AS 18.15.250(d)(1) specifies:
(4) "volunteer" means that the person is an
active volunteer of a first responder service, a
rescue service, an ambulance service, or a fire
department that provides emergency medical or rescue
services as part of its duties.
9:15:36 AM
MICHAEL PASCHALL, Staff, Representative Eric Feige, Alaska State
Legislature, explained that in Alaska the majority of emergency
medical services are part of a fire department. Therefore, the
numbers used during discussions of this legislation would
include most of the active emergency service medical service
providers. Although [the definition of volunteer includes
individuals besides firefighters] there is no way to obtain a
good number, it would be a relatively small increase in the
number of individuals eligible for the proposed exemption.
9:16:20 AM
REPRESENTATIVE AUSTERMAN inquired as to how many property tax
exemptions the state pays for, other than the senior property
tax exemption.
REPRESENTATIVE FEIGE said that he isn't aware of the exact
number. However, he related his belief that in recent years the
state hasn't funded those property tax exemptions.
REPRESENTATIVE AUSTERMAN asked if this legislation prohibits
double dipping, such that an individual wouldn't be allowed to
receive say both the senior property tax exemption and this
proposed volunteer emergency services personnel exemption.
REPRESENTATIVE FEIGE opined that that the legislation doesn't
allow such as the language refers to "on the first $150,000 of
the assessed value of the real property" for both exemptions.
9:17:33 AM
REPRESENTATIVE SADDLER recalled at the last hearing that the
Alaska Municipal League (AML) was not excited about HB 170. He
expressed interest in AML's reaction to Version I.
REPRESENTATIVE FEIGE pointed out that the change in Version I
that makes the exemption one that the municipality would have to
opt-in would place it at the will and discretion of the
municipalities.
9:18:24 AM
REPRESENTATIVE DICK related his understanding that an eligible
volunteer would have to file an annual application for the
proposed exemption.
REPRESENTATIVE FEIGE clarified that the municipality would
determine how often a volunteer seeking this proposed exemption
would have to apply.
REPRESENTATIVE DICK posed a scenario in which a volunteer dies
in the line of duty or not, and asked if the widow/widower would
have to apply for the proposed exemption every year or would the
widow/widower be continuously eligible.
REPRESENTATIVE FEIGE stated that the legislation doesn't
distinguish between death in the line of duty or not. Whether
the widow/widower would have to apply every year is left to the
municipality to decide.
9:20:12 AM
CHAIR MUNOZ announced that since there are additional questions
regarding various aspects of this legislation, particularly in
terms of the widow/widower provision and the desire to hear from
AML, additional input is necessary.
9:20:56 AM
REPRESENTATIVE AUSTERMAN lauded the idea proposed by the
sponsor, but expressed concern with unfunded mandates. Although
[Version I] proposes an opt-in situation, he said he remains
nervous, particularly when one reviews the permanent fund and
the exemptions for the military, mariners, etcetera.
Representative Austerman questioned where one would stop with
these unfunded mandates. Furthermore, firefighters aren't the
only volunteers and thus it also becomes an issue in terms of
where to draw the line. He said that were HB 170 to reach the
floor, he suspected he would have to vote against it.
9:23:17 AM
CHAIR MUNOZ announced that HB 170 needs more work and will be
held over.
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