04/14/1994 09:25 AM Senate FIN

  CSSB 240(FIN): An Act relating to  an optional municipal tax                 
                 credit  for costs  of  certain river  habitat                 
                 protection improvements.                                      
                                                                               
                 CSSB240(FIN)  work  draft  "U"  was  ADOPTED.                 
                 Wendy Redman, Vice  President for  University                 
                 Relations, University  of Alaska,  Fairbanks,                 
                 spoke in  support of  the work  draft.   CSSB
(2d  FIN)  was REPORTED  OUT  of committee                 
                 with a "do pass," and  a zero fiscal note for                 
                 the University of Alaska.                                     
                                                                               
  CS FOR SENATE BILL NO. 240(FIN):                                             
                                                                               
       An Act relating to an optional municipal tax credit for                 
       costs of certain river habitat protection improvements.                 
                                                                               
  CO-CHAIR  PEARCE  announced  that  SB  240  was  before  the                 
  committee.  She invited Wendy Redman, to join the members at                 
  the table.                                                                   
                                                                               
  SENATOR KELLY MOVED for adoption of CSSB 240(2d FIN) version                 
  "U".  No objection being heard, it was ADOPTED.                              
                                                                               
  WENDY  REDMAN,  Vice  President  for  University  Relations,                 
  University of Alaska,  Fairbanks, said  that SB 240  amended                 
  statute  29.45  to  provide  municipalities  the  option  of                 
  passing a local ordinance that  would provide a property tax                 
  exemption for the development of student housing  facilities                 
  at the University of Alaska.  Present law  did not allow the                 
  municipalities to grant  that kind of property  exemption if                 
  they  wished to do so.   The current  law also mandated that                 
  student  rents  reflect the  cost  of property  tax  if they                 
  occupied a non-university owned facility, even if the entire                 
  facility  was dedicated to university housing.  She said the                 
  university was in the process of investigating opportunities                 
  in Anchorage and  Fairbanks in terms of  student housing and                 
  partnerships with  the private  sector, and  a property  tax                 
  exemption would be an  important tool in trying to  meet the                 
  student housing demand.   It in no way would  bind the local                 
  municipality.  It would be optional.                                         
                                                                               
  In answer to Senator Sharp, Ms. Redman said that it would be                 
  up to  the  municipality  to  allow  the  tax  exemption  on                 
                                                                               
                                                                               
  property that was  now taxable.  She  said that on a  forty-                 
  year lease,  the municipality could  even give a  portion of                 
  the lease a tax  exemption.  She agreed with  Co-chair Frank                 
  that the municipality also could apply the tax exemption  to                 
  only the improvements on the property.                                       
                                                                               
  In answer to Senator Sharp,  Ms. Redman said SB 240 did  not                 
  cover tax exempt bonds.  She said the University already had                 
  the capability of using tax exempt bonds to build housing.                   
                                                                               
  Co-chair  Frank  and  Ms.  Redman  commented  that  the  tax                 
  exemption would be used "exclusively" for housing students.                  
                                                                               
  End SFC-93 #69, Side 1                                                       
  Begin SFC-93 #69, Side 2                                                     
                                                                               
  Senator Kelly  MOVED for passage  of SB 240(2d  FIN) version                 
  "U"  from  committee.   No  objection  being  heard, it  was                 
  REPORTED  OUT  of committee  with a  "do  pass", and  a zero                 
  fiscal note for the University  of Alaska.  Co-chairs Pearce                 
  and Frank, and Senators Kelly,  Rieger and Sharp signed  "do                 
  pass."