Legislature(2015 - 2016)BARNES 124
03/24/2016 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB209 | |
| HB370 | |
| HB338 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 209 | TELECONFERENCED | |
| *+ | HB 370 | TELECONFERENCED | |
| *+ | HB 338 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 370-MUNICIPAL TAX EXEMPTIONS
8:21:09 AM
CHAIR TILTON announced that the next order of business would be
HOUSE BILL NO. 370, "An Act relating to municipal tax
exemptions."
[CHAIR TILTON passed the gavel to Vice Chair Seaton.]
CHAIR TILTON provided a brief overview of the bill, summarizing
the sponsor's statement, which read as follows [original
punctuation provided]:
AS 29.45.050m authorizes municipalities to exempt or
defer all or parts of real and personal property taxes
by ordinance for economic development purposes. This
bill would remove the time limitation mandated by
statute and authorize local governments to determine
time periods appropriate for specific projects and
according to their own needs and objectives.
The section presently allows a municipality to grant
the exemption or deferral for up to five years, with
options for renewal, and contains provisions for
property eligibility, public notice, hearing and
referendum, project goals, preserving mandated school
funding tax equivalency, and criteria regarding
previous use or taxation in the subject municipality
or another municipality.
As the current budget deficit limits the State's
ability to invest in economic development initiatives,
municipalities will need to rely more on their own
means to facilitate those projects. The current
initial five year limitation does not provide the
longer term certainty necessary for investors to
commit to larger and more capital intensive projects.
HB 370 (Municipal Tax Exemptions) amends AS
29.45.050(m) to remove the requirement that a full or
partial property tax exemption or deferral for
economic development property be limited to five
years, with possible renewals. This legislation would
authorize a municipality's discretion to establish a
full or partial property tax exemption or deferral
over a designated period of time without limitation in
state law, and to designate a period of time for an
exemption or deferral that differs based on the type
of economic development property.
In addition, AS 29.45.050(m) would be amended to
augment the requirements for eligibility for a full or
partial property tax exemption or deferral for
economic development property by including economic
development property that involves a "significant
capital investment in physical infrastructure" that
expands the tax base of the municipality and that will
generate property tax revenue after the exemption
expires.
[VICE-CHAIR SEATON returned the gavel to Chair Tilton.]
[HB 338 was held over.]