Legislature(1999 - 2000)

04/15/2000 03:15 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
     HOUSE BILL NO. 272                                                                                                         
     "An Act relating  to the tax assessment by  a home rule                                                                    
     or general  law municipality of housing  that qualifies                                                                    
     for the  low-income housing  credit under  the Internal                                                                    
    Revenue Code; and providing for an effective date."                                                                         
                                                                                                                                
                                                                                                                                
Senator Leman MOVED  that the Committee adopt  work draft 1-                                                                    
LS1148\B,  Chenoweth, 4/14/00,  as the  version of  the bill                                                                    
before the Committee.                                                                                                           
                                                                                                                                
Senator Adams  OBJECTED for the  purpose of discussion.   He                                                                    
pointed out  that the "grandfather clause"  had been removed                                                                    
in the work draft.                                                                                                              
                                                                                                                                
Co-Chair Torgerson  commented that  a community  could still                                                                    
be "grandfathered",  however, the local assembly  would also                                                                    
be  responsible to  take action.   The  language would  give                                                                    
local  governments  the  authority   to  pass  an  ordinance                                                                    
authorizing the resolution.                                                                                                     
                                                                                                                                
Senator  Adams  WITHDREW  his OBJECTION  to  adopt  the  "B"                                                                    
version.                                                                                                                        
                                                                                                                                
Senator Leman referenced  Page 2, Line 1, "the  value of the                                                                    
property and  the actual income derived  from the property".                                                                    
He asked if that was the correct standard.                                                                                      
                                                                                                                                
JONATHAN  LACK, Staff,  Representative Rick  Halford, stated                                                                    
that the  question of income  derived had not yet  come into                                                                    
discussion.   The uniform property  standard adopted  by the                                                                    
property assessors  now indicates  that the  income approach                                                                    
does not address what has  been received.  He clarified that                                                                    
the income approach is what could be received.                                                                                  
                                                                                                                                
Senator  Leman  explained  given that  understanding  he  no                                                                    
longer questioned that  section.  He inquired if  this was a                                                                    
current accounting standard.                                                                                                    
                                                                                                                                
Mr. Lack  stated that it  is and that the  uniform assessors                                                                    
group  uses  it.    He  interjected  that  the  assessor  in                                                                    
Anchorage does not obey the established standard.                                                                               
                                                                                                                                
Senator Leman countered that if  that assessor does not obey                                                                    
the standard,  what assurance  does the  State have  that he                                                                    
will obey the proposed law.                                                                                                     
                                                                                                                                
Mr. Lack  replied that there  are working  drafts addressing                                                                    
the  assessor establishing  the  standard.   The work  draft                                                                    
before the Committee, has the  standard adopted by the local                                                                    
governing body.                                                                                                                 
                                                                                                                                
Senator Donley reinforced that point  and the possibility of                                                                    
leaving it  empty.  The  language references the  maximum of                                                                    
what could be derived.                                                                                                          
                                                                                                                                
Senator Leman  recommended language  indicating it  could be                                                                    
from income derived from property at full occupancy.                                                                            
                                                                                                                                
Senator  Donley MOVED  the  changes  recommended by  Senator                                                                    
Leman, Page  2, Line  2, following "property"  inserting "at                                                                    
full occupancy" as Amendment #1.                                                                                                
                                                                                                                                
Mr.  Lack acknowledged  that there  are some  questions that                                                                    
Senator   Halford   has   about   the   proposed   committee                                                                    
substitute.  He was not confident to answer the question.                                                                       
                                                                                                                                
There being NO OBJECTION, Amendment #1 was adopted.                                                                             
                                                                                                                                
Senator Green  asked if  the amendment  would apply  on Line                                                                    
14.  She  MOVED that language be added to  Line 14 following                                                                    
"property".                                                                                                                     
                                                                                                                                
There being NO OBJECTION, the change was made.                                                                                  
                                                                                                                                
Senator  Leman MOVED  a  text  change to  Page  2, Line  17,                                                                    
deleting "relating"  and inserting  "related".   There being                                                                    
NO OBJECTION, it was adopted.                                                                                                   
                                                                                                                                
Senator  Leman MOVED  to  report  SCS HB  272  (FIN) out  of                                                                    
Committee  with  individual  recommendations  and  with  the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Senator Phillips OBJECTED.                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Donley,   Leman,    Adams,   Wilken,   Green,                                                                    
               Parnell, Torgerson                                                                                               
OPPOSED:       Phillips                                                                                                         
                                                                                                                                
Senator P. Kelly was not present for the vote.                                                                                  
                                                                                                                                
The MOTION PASSED (7-1).                                                                                                        
                                                                                                                                
SCS  HB  272  (FIN)  was  reported  out  of  Committee  with                                                                    
"individual recommendations"  and with a fiscal  note by the                                                                    
House C&RA Committee.                                                                                                           

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