Legislature(2023 - 2024)SENATE FINANCE 532
05/13/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB347 | |
| HB202 | |
| HB111 | |
| HB148 | |
| HB347 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 202 | TELECONFERENCED | |
| += | HB 347 | TELECONFERENCED | |
| += | HB 111 | TELECONFERENCED | |
| += | SB 217 | TELECONFERENCED | |
| += | HB 148 | 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."
9:09:38 AM
Co-Chair Olson OPENED public testimony.
9:09:53 AM
NILS ANDREASSEN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, (AML) spoke in opposition to the bill. He remarked
that he had a positive experience working with the sponsors
on the Senate version of the bill. He spoke against the
mandatory exemption increases.
Co-Chair Stedman remarked that the issue should be related
to inflation proofing. He stressed that there were some
challenges with escalating property values.
9:14:26 AM
Senator Kiehl wondered if Mr. Andreassen could speak to how
the bill would go into effect.
Mr. Andreassen replied that the exception currently applied
to about 25 percent of households, and did not accrue to 80
percent across the state. He stressed that there were other
ways to address inflation, such as an exemption for
homeowners that went beyond current options for residents.
Senator Kiehl wondered whether there was a cap for
municipalities' option for senior tax exemptions.
Mr. Andreassen replied that there were many options for
local governments to make adjustments and flexibility to
address the issue.
Co-Chair Hoffman stressed that the problem had existed for
over thirty years, and stressed that AML had not
represented the seniors of the state. He wondered why there
had not been previous work on addressing the issues related
to seniors in the state.
Mr. Andreassen appreciated Co-Chair Hoffman's remarks, and
lamented not being prepared to answer all of the Senator's
questions.
9:21:24 AM
Senator Kiehl noted that Mr. Andreassen had addressed one
of the optional programs, and noted that municipalities did
not cap the program. He asked if the fastest growing
demographic in Alaska was seniors.
Mr. Andreassen replied that the number of exemptions had
almost doubled in the last ten years.
Co-Chair Stedman did not think the state was concerned
about the hypothetical scenario described by Senator Kiehl,
which involved two Tier 1 retirees that enjoyed salary
replacement benefits. He pointed out that it was different
for the vast majority of Alaskans, which the inflation-
proofing would effect.
Co-Chair Hoffman thought a possible solution would be to
implement the bill section with an effective date of two
years, prior to which AML would have the opportunity to
offer a better solution. He reiterated that the senior
demographic had not gained the attention of AML. He was
concerned that AML would not take action, after being
ignored for so long.
Senator Kiehl agreed with Co-Chair Stedman's comments about
those enjoying good retirements.
9:26:31 AM
ANNA BRAWLEY, SELF, ANCHORAGE (via teleconference),
testified in opposition to the legislation. She thought the
bill did not consider the distributional effects on other
taxpayers, nor did it help all seniors.
Senator Merrick shared some information she had received
from the Municipality of Anchorage.
9:31:05 AM
AT EASE
9:31:46 AM
RECONVENED
JACK GADAMUS, MUNICIPAL ASSESSOR, MUNICIPALITY OF ANCHORAGE
(via teleconference), spoke against the bill. He echoed
previous comments. He continued that the Municipality of
Anchorage would appreciate more time to identify the
ramifications and unintended consequences of the bill
provisions.
Co-Chair Stedman thought the subject was worthy of
discussion. He thought Co-Chair Hoffman had identified a
good compromise in delaying the implementation for two
years.
Co-Chair Olson CLOSED public testimony.
HB 347 was heard and HELD in Committee for further
consideration.
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."
5:20:36 PM
AT EASE
5:20:59 PM
RECONVENED
Co-Chair Hoffman MOVED to ADOPT Conceptual Amendment 1. He
explained that the amendment would change the amount in
Section 1 from $450,000 down to $250,000.
5:23:08 PM
KEN ALPER, STAFF TO SENATOR OLSON noted that the new
effective date for Conceptual Amendment 1 was January 1,
2027. He added that when the bill moved from committee, it
would be helpful to authorize the Legislative Legal
Department to make legal and conforming changes.
Co-Chair Hoffman affirmed Mr. Alper's remarks regarding
Conceptual Amendment 1.
There being NO OBJECTION, it was so ordered. Conceptual
Amendment 1 was ADOPTED.
Senator Bishop MOVED to ADOPT Amendment 1, 33-LS1430\T.1
(Dunmire, 5/12/24).
Co-Chair Olson OBJECTED for discussion.
Mr. Alper explained Amendment 1.
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
5:25:19 PM
AT EASE
5:25:32 PM
RECONVENED
5:25:32 PM
AT EASE
5:27:10 PM
RECONVENED
Senator Kiehl MOVED to ADOPT Amendment 3, 33-LS1430\T.2
(Dunmire, 5/12/24).
Co-Chair Olson OBJECTED for discussion.
Senator Kiehl spoke to Amendment 3.
Co-Chair Stedman pondered that there was a lot of pride in
home ownership and hoped that there would be a mandate
within the bill.
Senator Wilson felt that there should be more availability
to impacted folks to maintain their home.
Senator Kiehl strongly disagreed, and thought
municipalities had budgets to balance and citizens to
satisfy to ensure that there was a healthy economy.
Senator Kiehl moved to WITHDRAW Amendment 3. There being NO
OBJECTION, it was so ordered.
Senator Wilson MOVED to report SCS CSHB 347(FIN) as amended
out of Committee with individual recommendations and the
accompanying fiscal notes.
SCS CSHB 347(FIN) was REPORTED out of committee with three
"do pass" recommendations, two no recommendation
recommendations, and with one amend recommendation; and
with one new zero fiscal note from the Department of
Commerce, Community and Economic Development.
5:32:32 PM
RECESSED
5:32:52 PM
RECONVENED