Legislature(2023 - 2024)SENATE FINANCE 532
05/12/2024 02:00 PM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB50 | |
| HB66 | |
| HB122 | |
| SB217 | |
| HB347 | |
| HB148 | |
| HB129 | |
| HB111 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 66 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| += | SB 217 | TELECONFERENCED | |
| += | HB 122 | TELECONFERENCED | |
| += | HB 148 | TELECONFERENCED | |
| += | HB 111 | TELECONFERENCED | |
| += | HB 347 | TELECONFERENCED | |
| += | HB 129 | TELECONFERENCED | |
| += | HB 202 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 347(CRA) am
"An Act relating to assessment of property, boards of
equalization, and certification of assessors; and
providing for an effective date."
5:00:36 PM
EDRA MORLEDGE, STAFF, SENATOR JULIE COULOMBE, explained
that the intent of the bill was to provide fairness when it
came to property taxes by putting sideboards in place for
municipalities, including greater transparency, which still
ensuring local control. The bill would direct the
Department of Commerce, Community, and Economic Development
to set standards for Alaskans to be clear on what the rules
are for assessing property values, while still allowing
municipalities to adopt their own standards to meet their
specific needs. The legislation would change the default
for those who heard tax appeals to an appointed board of
equalization instead of local officials. The bill would
prohibit municipalities from increasing the assessed
property value during an appeal, ceasing any immediate
punitive damage or action. Finally, the bill would assure
assessors had the necessary experience and credentials to
do the job well for both taxpayers and municipalities. She
stated that changes in the previous committee included the
addition of a municipal property tax exemption; the
inclusion of provisions in SB 77, which allowed
municipalities to levy taxes on blighted properties by
ordinance; and clarifying language had been added about
meetings between taxpayers and assessors.
5:03:22 PM
Senator Bishop MOVED to ADOPT the committee substitute for
CSHB 347(CRA)am, Work Draft 33-LS1430\T (Dunmire, 5/10/24).
Co-Chair Olson OBJECTED for discussion.
KEN ALPER, STAFF, SENATOR DONNY OLSON, explained the
changes in the committee substitute. He read from the
document, Summary of Changes, version H to T May 10,
2024:
Change 1 Increased the required municipal property tax
exemption for a primary residence owned and occupied
by a resident who is 65 years of age or older, a
disabled veteran, or a qualified widow or widower,
from $150,000 to $450,000. This is in Section 1 of the
committee substitute.
Change 2 Increased the optional municipal property tax
exemption for residential property from $75,000 to
$150,000. This is in Section 2 of the committee
substitute.
Change 3 Removed the option for certain municipalities
to levy a tax on blighted property. This was Sections
2 and 9 of the Community and Regional Affairs version.
Change 4 Changes 1 and 2, above, have the same
effective date as the other parts of the bill, January
1, 2026.
5:05:15 PM
Senator Kiehl spoke to Change 1 in the latest version and
wondered how it compared to the current mandatory
exemption.
5:05:31 PM
Mr. Alper replied that the current mandatory exemption was
$150,000 and had been in place since the 1990s. He said
that the number had been adjusted for inflation by triple.
5:05:52 PM
Senator Kiehl recalled that there was a law that state that
the state was supposed to fund the mandatory exemption. He
wondered what the number would be in 2024 if the state
funded or reimbursed the exemption.
5:06:13 PM
Mr. Alper replied that the statute (AS 49.45.030) that
mandated the exemption had been dormant and unfunded for
many years. He said that the current impact that
municipalities claimed for the current senior exemption was
$100 million.
5:06:56 PM
Senator Kiehl remarked that the total was closer to $105
million. He asked whether there was anything in the bill
that would cause the unfunded mandate to municipalities to
do anything but triple.
5:07:11 PM
Mr. Alper did not think the number would triple because
there was a substantial number of homes worth well under
$450,000.
5:07:57 PM
Senator Kiehl noted that the mandate currently totaled 7
percent of the operating budget for the Municipality of
Anchorage.
5:08:56 PM
Senator Merrick asked how much tax revenue would be forgone
due to Change 1.
5:09:08 PM
Mr. Alper replied that he did not know, but there would be
some number between zero and $200 million.
5:09:51 PM
AT EASE
5:10:22 PM
RECONVENED
5:10:28 PM
Co-Chair Olson REMOVED his objection to the ADOPTION of
version T. There being NO further OBJECTION, it was so
ordered.
5:10:34 PM
Senator Kiehl asked whether the chair intended to move the
bill today.
5:10:37 PM
Co-Chair Olson replied in the negative.
CSHB 347(CRA)am was heard and HELD in Committee for further
consideration.
5:11:13 PM
AT EASE
5:12:27 PM
RECONVENED