Legislature(1999 - 2000)
04/15/2000 03:15 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 272
"An Act relating to the tax assessment by a home rule
or general law municipality of housing that qualifies
for the low-income housing credit under the Internal
Revenue Code; and providing for an effective date."
Senator Leman MOVED that the Committee adopt work draft 1-
LS1148\B, Chenoweth, 4/14/00, as the version of the bill
before the Committee.
Senator Adams OBJECTED for the purpose of discussion. He
pointed out that the "grandfather clause" had been removed
in the work draft.
Co-Chair Torgerson commented that a community could still
be "grandfathered", however, the local assembly would also
be responsible to take action. The language would give
local governments the authority to pass an ordinance
authorizing the resolution.
Senator Adams WITHDREW his OBJECTION to adopt the "B"
version.
Senator Leman referenced Page 2, Line 1, "the value of the
property and the actual income derived from the property".
He asked if that was the correct standard.
JONATHAN LACK, Staff, Representative Rick Halford, stated
that the question of income derived had not yet come into
discussion. The uniform property standard adopted by the
property assessors now indicates that the income approach
does not address what has been received. He clarified that
the income approach is what could be received.
Senator Leman explained given that understanding he no
longer questioned that section. He inquired if this was a
current accounting standard.
Mr. Lack stated that it is and that the uniform assessors
group uses it. He interjected that the assessor in
Anchorage does not obey the established standard.
Senator Leman countered that if that assessor does not obey
the standard, what assurance does the State have that he
will obey the proposed law.
Mr. Lack replied that there are working drafts addressing
the assessor establishing the standard. The work draft
before the Committee, has the standard adopted by the local
governing body.
Senator Donley reinforced that point and the possibility of
leaving it empty. The language references the maximum of
what could be derived.
Senator Leman recommended language indicating it could be
from income derived from property at full occupancy.
Senator Donley MOVED the changes recommended by Senator
Leman, Page 2, Line 2, following "property" inserting "at
full occupancy" as Amendment #1.
Mr. Lack acknowledged that there are some questions that
Senator Halford has about the proposed committee
substitute. He was not confident to answer the question.
There being NO OBJECTION, Amendment #1 was adopted.
Senator Green asked if the amendment would apply on Line
14. She MOVED that language be added to Line 14 following
"property".
There being NO OBJECTION, the change was made.
Senator Leman MOVED a text change to Page 2, Line 17,
deleting "relating" and inserting "related". There being
NO OBJECTION, it was adopted.
Senator Leman MOVED to report SCS HB 272 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note.
Senator Phillips OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Donley, Leman, Adams, Wilken, Green,
Parnell, Torgerson
OPPOSED: Phillips
Senator P. Kelly was not present for the vote.
The MOTION PASSED (7-1).
SCS HB 272 (FIN) was reported out of Committee with
"individual recommendations" and with a fiscal note by the
House C&RA Committee.
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