04/09/2016 03:23 PM Senate FIN

SENATE BILL NO. 210                                                                                                           
                                                                                                                                
     "An  Act  relating  to the  community  revenue  sharing                                                                    
     program;  changing the  name of  the community  revenue                                                                    
     sharing  program to  the community  assistance program;                                                                    
     and relating  to the  municipal property  tax exemption                                                                    
     on the residence  of a senior, a  disabled veteran, and                                                                    
     a widow or widower of a senior or disabled veteran."                                                                       
                                                                                                                                
3:35:24 PM                                                                                                                    
                                                                                                                                
LAURA CRAMER,  STAFF, SENATOR ANNA MACKINNON  explained that                                                                    
the  committee  had  removed   the  property  tax  exemption                                                                    
language,  so the  name was  changed from  Community Revenue                                                                    
Sharing to Community Assistance.  She remarked that the bill                                                                    
would have funding, should SB 196 become law.                                                                                   
                                                                                                                                
3:36:30 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:36:35 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:36:37 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche   MOVED  to  ADOPT  Amendment   1,  29-                                                                    
LS1593\H.1, Shutts, 4/4/16 (copy on file):                                                                                      
                                                                                                                                
     Page 6, line 3:                                                                                                            
                                                                                                                                
          Delete "revenue sharing"                                                                                              
          Insert "assistance [REVENUE SHARING]"                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
Ms.  Cramer  explained  the  amendment.  She  remarked  that                                                                    
Legislative Legal did not catch the name change.                                                                                
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
OBJECTION, Amendment 1 was ADOPTED.                                                                                             
                                                                                                                                
WAYNE ADERHOLD, SELF,  HOMER (via teleconference), testified                                                                    
against the legislation. He shared  that he was a senior who                                                                    
received the exemption. He felt  that he should be taxed. He                                                                    
remarked  that the  constitution provided  rights, but  also                                                                    
outlined duties.  He announced that seniors  must be engaged                                                                    
in the  financially in the  state's current  budget problem.                                                                    
He  felt that  any exemption  should be  needs-based, rather                                                                    
than age-based. He  shared that there was a  2009 Pugh Trust                                                                    
report,  which showed  that over  the 25-year  period up  to                                                                    
2009 people  over the age  of 65 were performing  42 percent                                                                    
better  at the  end of  that  period. He  noted that  people                                                                    
under the  age of  35 were performing  68 percent  worse, in                                                                    
regards to net worth.                                                                                                           
                                                                                                                                
Co-Chair  MacKinnon  explained  that the  exemption  was  no                                                                    
longer in the bill.                                                                                                             
                                                                                                                                
SUSANNE  FLEEK-GREEN,   CHIEF  OF  STAFF,   MAYOR'S  OFFICE,                                                                    
MUNICIPALITY OF  ANCHORAGE, ANCHORAGE  (via teleconference),                                                                    
testified against  the current  version of  the legislation.                                                                    
She  felt  that  the  bill  would result  in  a  $9  million                                                                    
reduction  to  the  current   amount  of  Community  Revenue                                                                    
Sharing.  She   shared  that  the  municipality   had  taken                                                                    
responsible  action  with the  passage  of  its budget.  The                                                                    
municipal budget allowed  for a $5 million  cut in municipal                                                                    
assistance. She  felt that cutting the  Anchorage assistance                                                                    
by  $9  million  would have  significant  consequences.  The                                                                    
municipality would need  to add to burden  to counteract the                                                                    
effects of the legislation.                                                                                                     
                                                                                                                                
JOHN J. PIERCE, SELF,  FAIRBANKS (via teleconference), spoke                                                                    
in  support   of  the  elimination   of  the   property  tax                                                                    
exemption.  He reassured  the committee  that targeting  the                                                                    
fixed income  seniors, disabled  military, and  veterans was                                                                    
wrong.                                                                                                                          
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
3:46:45 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:47:12 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon                                                                                                              
                                                                                                                                
SB  210  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.