05/05/2007 12:45 PM House CRA

HB 199-MUNICIPAL PROPERTY TAX EXEMPTION                                                                                       
                                                                                                                                
12:50:47 PM                                                                                                                   
                                                                                                                                
CO-CHAIR  FAIRCLOUGH announced  that the  next order  of business                                                               
would be  HOUSE BILL  NO. 199,  "An Act  relating to  an optional                                                               
exemption   from  municipal   property   taxes  for   residential                                                               
property."                                                                                                                      
                                                                                                                                
12:51:10 PM                                                                                                                   
                                                                                                                                
CO-CHAIR LEDOUX moved to adopt  the proposed committee substitute                                                               
(CS) for  HB 199,  Version 25-LS0705\M, Cook,  5/2/07, as  a work                                                               
draft.   There  being  no  objection, Version  M  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
12:51:32 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SCOTT KAWASAKI,  Alaska State Legislature, sponsor                                                               
of  HB 199,  commented that  several city  councils and  boroughs                                                               
have  requested  higher  exemption  amounts  [than  specified  in                                                               
Version M].   However,  he opined  that Version  M offers  a fair                                                               
compromise.                                                                                                                     
                                                                                                                                
12:52:06 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN expressed concern about upcoming deficits.                                                                
                                                                                                                                
12:52:33 PM                                                                                                                   
                                                                                                                                
CO-CHAIR  FAIRCLOUGH   informed  the   committee  that   she  had                                                               
requested that  the state  assessor prepare a  fiscal note.   The                                                               
state  assessor, at  a prior  hearing, estimated  that a  $50,000                                                               
exemption would  result in a loss  to the general fund  of $1-1.5                                                               
million due  to property assessed  through taxation on  the North                                                               
Slope for oil and gas production.                                                                                               
                                                                                                                                
12:53:17 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KAWASAKI acknowledged  that this legislation would                                                               
result in  perhaps some  negative effects  to the  state coffers.                                                               
However,  the  legislation attempts  to  provide  a local  option                                                               
exemption to local communities, which  will provide more money in                                                               
residents' pockets that is likely to be spent locally.                                                                          
                                                                                                                                
12:54:45 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE DAHLSTROM  moved to  report CSHB 199,  Version 25-                                                               
LS0705\M,  Cook,   5/2/07,  out  of  committee   with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection,   CSHB  199(CRA)  was  reported   from  the  House                                                               
Community and Regional Affairs Standing Committee.