03/14/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

                   HB 347-PROPERTY ASSESSMENT                                                                               
                                                                                                                                
8:32:21 AM                                                                                                                    
                                                                                                                                
CHAIR MCCORMICK announced  that the next order  of business would                                                               
be  HOUSE  BILL  NO.  347,  "An Act  relating  to  assessment  of                                                               
property,   boards   of   equalization,  and   certification   of                                                               
assessors; and  providing for  an effective  date."   [Before the                                                               
committee, adopted  as the working  document on 3/12/24,  was the                                                               
proposed  committee  substitute  (CS)  for HB  347,  Version  33-                                                               
LS1430\B, Dunmire, 3/8/24 ("Version B").]                                                                                       
                                                                                                                                
8:32:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JULIE COULOMBE,  Alaska State  Legislature, prime                                                               
sponsor of  CSHB 347,  Version B,  gave a  brief overview  of the                                                               
proposed legislation.   She said the bill  would help communities                                                               
by providing a path of  transparency and fairness around property                                                               
assessment.   It  would set  standards for  Alaskans to  know the                                                               
rules  for  assessing property  values;  change  the default  for                                                               
those   who  hear   tax  appeals   to  an   appointed  board   of                                                               
equalization;  stop  a  municipality from  raising  the  assessed                                                               
value  during  the  appeal process;  ensure  assessors  have  the                                                               
required experience  and certifications;  and require  the Alaska                                                               
State Board  of Education to  explain disagreements with  any fee                                                               
appraisals.   Ultimately, she  said the  bill was  an opportunity                                                               
for  taxpayers to  have  a  "fair shake"  in  the tax  assessment                                                               
process.                                                                                                                        
                                                                                                                                
8:33:53 AM                                                                                                                    
                                                                                                                                
CHAIR MCCORMICK opened public testimony on HB 347.                                                                              
                                                                                                                                
8:34:38 AM                                                                                                                    
                                                                                                                                
FRANK BERGSTROM,  representing self,  testified in support  of HB
.   He  opined  that  it's incumbent  upon  the government  to                                                               
provide documentation as  to why it's taking  the people's money.                                                               
Further, a fee appraisal should be definitive, he said.                                                                         
                                                                                                                                
8:35:25 AM                                                                                                                    
                                                                                                                                
ROY  JOSEPHSON, representing  self,  testified in  support of  HB
.    He shared  a  personal  anecdote pertaining  to  property                                                               
assessment in Haines.  He stated that  HB 347 would be a start in                                                               
the right direction.                                                                                                            
                                                                                                                                
8:38:57 AM                                                                                                                    
                                                                                                                                
JENNIFER CANFIELD, representing self,  testified in support of HB
.   She  shared  a personal  anecdote  pertaining to  property                                                               
assessment  in Haines.   She  reiterated her  support for  HB 347                                                               
because  it  would prevent  increases  in  assessments during  an                                                               
appeal and ensure due process.                                                                                                  
                                                                                                                                
8:41:24 AM                                                                                                                    
                                                                                                                                
RAY KREIG,  representing self,  testified in  support of  HB 347.                                                               
He  emphasized  the importance  of  ensuring  credibility in  the                                                               
assessment process and stated his strong support for the bill.                                                                  
                                                                                                                                
8:43:40 AM                                                                                                                    
                                                                                                                                
BLYTHE  CARTER, representing  self,  testified in  support of  HB
.   She  shared  a personal  anecdote  pertaining to  property                                                               
assessment in Haines.   She expressed her hope  the standards and                                                               
statutes  establishing  transparency,  protection  of  individual                                                               
rights to due  process, and common decency in HB  347 would serve                                                               
to prevent tragedies in the future.                                                                                             
                                                                                                                                
8:46:25 AM                                                                                                                    
                                                                                                                                
JON FAULKNER, representing self, testified  in support of HB 347.                                                               
He opined that  the bill may not go far  enough in protecting the                                                               
public  from  arbitrary and  capricious  actions.   He  shared  a                                                               
personal  anecdote pertaining  to property  assessment in  Kenai,                                                               
asserting  that  the  assessors   failed  to  recognize  economic                                                               
obsolescence.                                                                                                                   
                                                                                                                                
8:49:55 AM                                                                                                                    
                                                                                                                                
GREG ADLER,  Goldstein Development Company, testified  in support                                                               
of HB  347.  He  stated that the bill  is needed because  the CBJ                                                               
had  not   been  following   the  International   Association  of                                                               
Assessing Officers  (IAAO) guidelines.   He opined  that assessor                                                               
reform is  needed because property owners  are being stonewalled,                                                               
and due process is not provided.                                                                                                
                                                                                                                                
8:52:57 AM                                                                                                                    
                                                                                                                                
LARRY NORENE, representing self,  testified during the hearing on                                                               
HB 347.   He highlighted  the language in  Section 4 of  the bill                                                               
and suggested  adding "the [board of  equalization] shall provide                                                               
due process to all parties."   Specific to Section 5, he asserted                                                               
that the language  had been deliberately changed,  making it more                                                               
difficult  [for   the  board]  to  understand   the  grounds  for                                                               
assessment adjustment.   Furthermore, he opined  that the process                                                               
lacked  oversight and  said  he supported  the  addition of  "the                                                               
board must accept an appraisal."                                                                                                
                                                                                                                                
8:56:28 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 8:56 a.m.                                                                                 
                                                                                                                                
8:57:57 AM                                                                                                                    
                                                                                                                                
ED MARTIN, representing self, testified  in opposition to HB 347.                                                               
He discussed the calculation of  mill rates and shared his belief                                                               
that the Board  of Equalization should be composed  of all public                                                               
[members]  with the  assessor present  to answer  questions.   He                                                               
shared a personal anecdote pertaining  to property assessment and                                                               
overvaluation.   He  urged the  committee  to hold  the bill  for                                                               
further testimony.                                                                                                              
                                                                                                                                
9:01:03 AM                                                                                                                    
                                                                                                                                
SHERRY  STRIZAK, representing  self, testified  in support  of HB
.  She emphasized the  need for standards that meet prevailing                                                               
market conditions  to allow buyers  and sellers to  know expected                                                               
pricing  levels.   She added  that  assessor certification  would                                                               
provide  assessors  with  the proper  Level  3  certification  in                                                               
accordance  with the  Alaska  Association  of Assessing  Officers                                                               
(AAAO).   Most importantly, board  members would  hear residents'                                                               
concerns and  ensure assessments  are not over-  or under-valued.                                                               
She  concluded   that  assessor  reform  is   needed  to  protect                                                               
residents from exorbitant assessment values.                                                                                    
                                                                                                                                
9:02:49 AM                                                                                                                    
                                                                                                                                
KATIE BEGLY, representing  self, testified in support  of HB 347.                                                               
She stated  that the  bill includes  much needed  protections and                                                               
shared a  personal anecdote pertaining to  property assessment in                                                               
Haines.   She urged  the committee  to pass  HB 347,  which would                                                               
protect  her  right  to  access her  elected  official  and  seek                                                               
redress  of  injuries  enacted  by the  processes  of  the  local                                                               
municipality.                                                                                                                   
                                                                                                                                
9:05:10 AM                                                                                                                    
                                                                                                                                
MARK SMITH,  representing self, testified  in support of  HB 347.                                                               
He  shared  a  personal  anecdote   pertaining  to  the  property                                                               
assessor in Haines.                                                                                                             
                                                                                                                                
9:07:51 AM                                                                                                                    
                                                                                                                                
MAYA  MORIARITY, representing  self, testified  in support  of HB
.   She  shared  a personal  anecdote  pertaining to  property                                                               
assessment in  Seward.   She agreed  with a  previous testifier's                                                               
suggestion  to  make the  verbiage  regarding  fair market  value                                                               
easier  to  understand and  apply.    She  advised that  a  local                                                               
realtor's market value assessment, as  well as the tax assessment                                                               
of area homes, should be used as evidence for overvaluation.                                                                    
                                                                                                                                
9:11:15 AM                                                                                                                    
                                                                                                                                
CHAIR MCCORMICK closed public testimony on HB 347.                                                                              
                                                                                                                                
9:11:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   COULOMBE  noticed   that   Haines  was   heavily                                                               
represented in the  testimony, which she described  as a "message                                                               
of caution."   She said  she hoped  that the committee  could see                                                               
that the bill would create  guidelines and provide protections to                                                               
taxpayers.                                                                                                                      
                                                                                                                                
9:12:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCKAY asked  whether  a public  member should  be                                                               
added to Section 4 of the bill.                                                                                                 
                                                                                                                                
REPRESENTATIVE COULOMBE  said she always approached  her bills as                                                               
working documents and  recognized that [the addition  of a public                                                               
member] could be an important addition.                                                                                         
                                                                                                                                
9:13:08 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 9:14 a.m.                                                                                 
                                                                                                                                
9:14:20 AM                                                                                                                    
                                                                                                                                
CHAIR  MCCORMICK  announced that  the  proposed  CS for  HB  347,                                                               
Version B, would be held over.