02/26/2003 01:35 PM Senate CRA

                                                                                                                                
          SB  63-MUNICIPAL ANNEXATIONS AND DETACHMENTS                                                                      
                                                                                                                              
CHAIR WAGONER asked Ms. Jackson to introduce SB 63.                                                                             
                                                                                                                                
MS.  MARY JACKSON  explained the  bill has  to do  with municipal                                                               
annexations and detachments and  came before the Legislature last                                                               
year  as a  result of  the Homer  annexation. Pieces  of property                                                               
were  annexed and  current  statute does  not  define when  those                                                               
newly annexed properties should be assessed for tax purposes.                                                                   
                                                                                                                                
The Local Boundary Commission (LBC)  has reviewed the legislation                                                               
and approved it with suggested  additions. However, there are new                                                               
LBC  members and  professional courtesy  suggests  that new  body                                                               
should  be given  the opportunity  to review  and comment  on the                                                               
bill. This could be done during the March 2003 meeting.                                                                         
                                                                                                                                
The former LBC recommended extending  the time frame for property                                                               
assessment  to  include  many incorporations,  not  just  annexed                                                               
properties.                                                                                                                     
                                                                                                                                
She  noted Mr.  Bockhorst  and  Mr. Van  Sant  were available  to                                                               
answer questions  and Ms.  Griswold had  testimony she  wanted to                                                               
deliver.                                                                                                                        
                                                                                                                                
MS. MARY GRISWOLD, Homer resident, spoke  in support of SB 63 and                                                               
asked the committee to amend the  bill as recommended by the LBC.                                                               
Current statutes are confusing and  unclear regarding the ability                                                               
to  levy  property  taxes during  the  initial  period  following                                                               
incorporation,  annexation,  or  detachment.  "The  best  way  to                                                               
promote  an orderly  efficient economical  transition plan  is to                                                               
set simple  straight forward ground  rules. If  everyone involved                                                               
in a  proposed annexation understands  that revenue  streams will                                                               
shift  on January  1 following  an effective  date, everyone  can                                                               
plan accordingly."                                                                                                              
                                                                                                                                
SIDE B                                                                                                                          
2:20 pm                                                                                                                         
                                                                                                                                
SENATOR  TAYLOR asked  if  Homer tried  to impose  a  tax out  of                                                               
sequence.                                                                                                                       
                                                                                                                                
MS. GRISWOLD  replied they  did, but that  wasn't the  issue here                                                               
and Homer wouldn't be affected.                                                                                                 
                                                                                                                                
CHAIR WAGONER said he would move  the bill from committee and the                                                               
LBC  could  address comments  during  a  State Affairs  Committee                                                               
hearing.                                                                                                                        
                                                                                                                                
SENATOR TAYLOR  made a motion to  move SB 63 and  attached fiscal                                                               
note from committee with individual recommendations.                                                                            
                                                                                                                                
There being no objection, it was so ordered.