Legislature(2001 - 2002)
04/08/2002 04:21 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 389(CRA) "An Act eliminating the delayed repeal of a provision authorizing an exemption from and deferral of municipal property taxes on certain types of deteriorated property; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. REPRESENTATIVE VIC KOHRING, sponsor, testified the bill modifies AS 29.45.050, which allows municipalities to exempt certain properties from property taxes. He exampled historical sites and property owned by non-profit organizations. He noted deteriorated properties are also addressed in this legislation. Representative Kohring reminded the Committee of the legislation that created this statute in 1998, which would expire on July 1, 2002. This bill, he stated, eliminates the sunset provision in current statute. Representative Kohring informed that the House Community and Regional Affairs Committee decided to eliminate the sunset provision rather than extend the date because the standards and safeguards contained in the statute are adequate to prevent abuse of the tax exemption. He gave as an example the requirement that before property could receive this exemption, it must meet certain safety requirements established by the local municipality. Representative Kohring noted the long vacant and decrepit McCabe building located in the Ship Creek area of downtown Anchorage and detailed efforts to renovate the building to operate as a hotel. He relayed that because of the national events of September 11, 2001, financing has been more difficult to secure. He remarked this legislation would assist the financing process. Senator Leman reiterated statements he made when this bill was heard in the Senate Labor and Commerce Committee that he supported the original legislation, which expanded the expiration date rather than repeal it. However, because amending the bill would require a title change, he would not propose reinstating a sunset date. Representative Kohring voiced appreciation. Senator Olson asked if there were other "major pieces of real estate" that would be impacted either positively or negatively by this legislation. Representative Kohring listed the Knik Power Plant located on First Avenue in Anchorage and a vacant dairy in downtown Palmer. Senator Leman clarified for Senator Green this statute applies to buildings at least 15 years of age. Senator Leman offered a motion to report CS HB 389 (CRA) from Committee with accompanying zero fiscal note from the Department of Community and Economic Development. There was no objection and the bill MOVED from Committee.
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