03/12/2008 01:30 PM House FINANCE

HOUSE BILL NO. 356                                                                                                            
                                                                                                                                
     An Act relating to an exemption  from municipal property                                                                   
     taxes  for certain  real  property that  is exempt  from                                                                   
     levy  and   collection  of  real  property   taxes  when                                                                   
     conveyed  by the  federal  government  to implement  the                                                                   
     Alaska  Native Claims  Settlement Act  or when  conveyed                                                                   
     under a land  exchange authorized by that  Act involving                                                                   
     land or  an interest  in land that  is made  exempt from                                                                   
     local property  taxes by that Act; and  providing for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
Vice-Chair   Stoltze,  Sponsor,   introduced   the  bill   as                                                                   
expanding  the  list  of  property   that  is  exempted  from                                                                   
municipal  taxation   to  include  property  that   has  been                                                                   
conveyed under  the Alaska Native Claims Settlement  Act. The                                                                   
legislation will  provide benefits for all  municipalities in                                                                   
Alaska  who wish  to enter  into land  exchanges with  Native                                                                   
villages and regional corporations.  Currently, land a Native                                                                   
corporation receives  in an exchange with a  municipality may                                                                   
not be exempt.                                                                                                                  
                                                                                                                                
2:47:35 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  clarified  that the  municipality  would                                                                   
have to want to do the land trade,  in response to a question                                                                   
by Representative Kelly.                                                                                                        
                                                                                                                                
Representative  Hawker   commented  that  the   bill  is  re-                                                                   
affirming the over-riding federal  statute and state statute.                                                                   
He  was curious  if municipalities  could tax  land that  was                                                                   
exempt  by federal  statute. Vice-Chair  Stoltze thought  the                                                                   
bill was affirming the intent.                                                                                                  
                                                                                                                                
2:49:48 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer referred to fiscal notes.                                                                                        
                                                                                                                                
Co-Chair Chenault  MOVED to  report HB  356 out of  Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
fiscal notes.  There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
CS HB  356 (CRA)  was REPORTED  out of  Committee with  a "do                                                                   
pass" recommendation  and with  attached zero fiscal  note by                                                                   
the   Department   of  Commerce,   Community   and   Economic                                                                   
Development.