05/13/2024 09:00 AM House RULES

                                                                                                                                
        SB 179-PROPERTY TRANSFER TAX; MUNI TELECOMM TAX                                                                     
                                                                                                                                
[Contains discussion of SB 179,HB 347, and SB 77.]                                                                              
                                                                                                                                
12:46:23 PM                                                                                                                   
                                                                                                                                
CHAIR  C. JOHNSON  announced  that the  final  order of  business                                                               
would be  CS FOR  SENATE BILL NO.  179(CRA), "An  Act prohibiting                                                               
municipalities  from  levying  a  tax on  the  transfer  of  real                                                               
property;  prohibiting  the  state  from levying  a  tax  on  the                                                               
transfer of real property; and  relating to municipal taxation of                                                               
mobile telecommunications  services."  [Before the  committee was                                                               
HCS CSSB 179(CRA).]                                                                                                             
                                                                                                                                
12:46:37 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TILTON   moved  to   adopt  the   proposed  House                                                               
committee  substitute (HCS)  for CSSB  179, Version  33-LS1093\U,                                                               
Dunmire, 5/12/24, as a working document.                                                                                        
                                                                                                                                
CHAIR C. JOHNSON objected for the purpose of discussion.                                                                        
                                                                                                                                
12:46:57 PM                                                                                                                   
                                                                                                                                
TOM  WRIGHT,  Staff,  Representative  C.  Johnson,  Alaska  State                                                               
Legislature, explained  the changes in the  proposed HCS, Version                                                               
U, to  SB 179.   He  said [Version U]  would combine  three other                                                               
bills:    HB 347,  sponsored  by  Representative Coulombe,  which                                                               
addresses  property   assessment;  SB  77,   regarding  community                                                               
property tax  exemption, and including  the language of  a recent                                                               
House Rules  Standing Committee version;  and SB  161, addressing                                                               
tax exemption for farm land/structures,  to which Mr. Wright said                                                               
the House  Resources Standing Committee  had no objection  to its                                                               
incorporation.  He noted that  an amendment would be presented by                                                               
Representative  Coulombe's staff.    Further,  he commented  that                                                               
there is a new zero fiscal  note from the Department of Commerce,                                                               
Community  & Economic  Development  (DCCED), in  addition to  the                                                               
previous zero fiscal note.                                                                                                      
                                                                                                                                
12:48:13 PM                                                                                                                   
                                                                                                                                
SENATOR  JESSE  BJORKMAN,  Alaska  State  Legislature,  as  prime                                                               
sponsor,  stated that  SB  179  is a  policy  choice  set by  the                                                               
legislature  that  the  State  of   Alaska  will  not  allow  the                                                               
imposition of taxes on transfers  of real property.  He expressed                                                               
being fine  with the  changes proposed  under Version  U, stating                                                               
that  it is  an  incorporation of  "a  lot of  good  ideas."   He                                                               
thanked the committee.                                                                                                          
                                                                                                                                
12:49:07 PM                                                                                                                   
                                                                                                                                
SENATOR  FORREST  DUNBAR,  Alaska  State  Legislature,  as  prime                                                               
sponsor of SB 77, gave  feedback regarding its incorporation into                                                               
the  proposed  HCS  to  SB  179,  Version  U.    He  offered  his                                                               
understanding that  there would  be an  amendment offered  by the                                                               
committee.  He noted that "a  portion of this bill" was addressed                                                               
by the  Senate Community and Regional  Affairs Standing Committee                                                               
with  the   Alaska  Municipal  League  (AML);   "there  are  some                                                               
contracted  assessors   in  smaller  communities  for   whom  the                                                               
existing language in the assessor  bill doesn't really work."  He                                                               
indicated that the [forthcoming] amendment is "very positive."                                                                  
                                                                                                                                
12:50:08 PM                                                                                                                   
                                                                                                                                
SENATOR  DUNBAR, in  response to  Representative Fields,  offered                                                               
his understanding that the language  in the proposed HCS does not                                                               
include a  longer period of  property tax abatement but  rather a                                                               
more  "thorough exemption  that includes  the education  portion"                                                               
from SB 77.                                                                                                                     
                                                                                                                                
12:50:57 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE JULIE  COULOMBE, Alaska State  Legislature, stated                                                               
that she  had no  problem with  [Version  U]  to SB  179, echoing                                                               
that an amendment would be forthcoming.                                                                                         
                                                                                                                                
12:51:11 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  COULOMBE,   in  response   to  a   question  from                                                               
Representative Fields regarding an  amendment made during a floor                                                               
session  pushing the  effective date  back one  year for  smaller                                                               
communities,  confirmed that  the effective  date was  changed on                                                               
the House floor.                                                                                                                
                                                                                                                                
12:51:43 PM                                                                                                                   
                                                                                                                                
EDRA  MORLEDGE,  Staff,  Representative  Julie  Coulombe,  Alaska                                                               
State   Legislature,  in   response  to   Representative  Fields,                                                               
indicated  that there  was  a drafting  error  "in this  version"                                                               
regarding the  effective date for  municipal assessors  to become                                                               
certified  at level  three; an  amendment  had been  made on  the                                                               
House floor for an effective date of January 1, 2026.                                                                           
                                                                                                                                
REPRESENTATIVE FIELDS  specified he  would like  clarification as                                                               
to  whether the  pushed back  effective date,  by a  year, is  in                                                               
[Version U].                                                                                                                    
                                                                                                                                
MS. MORLEDGE reconfirmed  that it had been a drafting  error in a                                                               
version that had been heard on the House floor.                                                                                 
                                                                                                                                
12:52:49 PM                                                                                                                   
                                                                                                                                
CHAIR C.  JOHNSON, [his objection  for the purpose  of discussion                                                               
treated  as  withdrawn] and  ascertaining  there  was no  further                                                               
objection, announced that  Version U was before  the committee as                                                               
a working document.                                                                                                             
                                                                                                                                
12:53:08 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TILTON moved to adopt  Amendment 1 to Version U of                                                               
SB 179,  labeled 33-LS1093\U.1,  Dunmire, 5/13/24, which  read as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 6, line 22, following "assessor":                                                                                 
        Insert "or a person designated by the assessor"                                                                     
                                                                                                                                
     Page 6, line 23, following "property.":                                                                                
     Insert "The meeting required under this subsection may                                                                 
     be virtual or telephonic."                                                                                             
                                                                                                                                
CHAIR C. JOHNSON objected for the purpose of discussion.                                                                        
                                                                                                                                
12:53:40 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE COULOMBE  said she  had no problem  with Amendment                                                               
1.                                                                                                                              
                                                                                                                                
12:54:03 PM                                                                                                                   
                                                                                                                                
CHAIR C.  JOHNSON removed  his objection to  Amendment 1.   There                                                               
being no further objection, [Amendment 1 was adopted].                                                                          
                                                                                                                                
12:54:24 PM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease at 12:54 p.m.                                                                                
                                                                                                                                
12:54:42 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS moved to adopt  Conceptual Amendment [2] to                                                               
Version U  of SB 179, to  establish an effective date  of January                                                               
1, 2026, for Section 14 of the bill on page 6, lines 13-18.                                                                     
                                                                                                                                
CHAIR  C. JOHNSON,  after ascertaining  there  was no  objection,                                                               
announced that Conceptual Amendment [2] was adopted.                                                                            
                                                                                                                                
12:55:31 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TILTON moved  to report HCS CSSB  179, Version 33-                                                               
LS1093\U,  Dunmire, 5/12/24,  as amended,  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes,                                                               
and to  allow Legislative Legal  Services to make  conforming and                                                               
technical changes.   There being no objection,  HCS CSSB 179(RLS)                                                               
was reported out of the House Rules Standing Committee.