Legislature(2003 - 2004)
04/24/2003 03:40 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 63-MUNICIPAL ANNEXATIONS AND DETACHMENTS MARY JACKSON, staff to Senator Thomas Wagoner, explained this bill was introduced as a result of the contentious Homer annexation that raised the question of when the taxation of an annexed area would begin. This bill remedies the question and sets it in statute. The Local Boundary Commission (LBC) reviewed original draft legislation in September 2002 and recommended additional issues be addressed in the bill. The new LBC concurred with the bill, but requested it be expanded to include new incorporations as well. The bill was amended and the proposed CS is the product. CHAIR GARY STEVENS asked for a motion to adopt the CS as the working document. SENATOR GRETCHEN GUESS made a motion to adopt CSSB 63 \H version as the working document. There was no objection. MS. JACKSON explained the LBC supports the \H version that makes the following changes: · Section 1 extends the same time restrictions for annexed areas in the current bill to newly incorporated areas. · The CS deletes the immediate effective date that was in the original bill. In addition, the LBC asked for intent language and the legal department was in the process of drafting an amendment to accommodate the request. CHAIR GARY STEVENS said he would hold the bill until the amendment was available, but he would take public testimony that day. MARY GRISWOLD from Homer testified in support of the CS because it clarifies in statute in cases of incorporation, annexation, and detachments that property taxes accrue in full each January 1. It's consistent with existing policy across the state for assessing property and adding new property to the tax rolls. With many annexations there is also a corresponding detachment from another government. Using January 1 as a cutoff date to establish value and jurisdiction provides less disruption. During the transition period, the government that is providing services can be appropriately compensated through a contract agreement worked out in the transition plans. If the LBC was able to direct municipalities to levy taxes on property within their jurisdiction as of any date other than January 1, serious conflicts could arise. Also, adopting SB 63 without including incorporations risks multiple taxation when an area within a service area of an organized borough incorporates as a city before July 1. If the city levies taxes in the initial year following incorporation while the taxes in the detached area of the borough remain in effect, the property owners in the new city would be taxed twice. DAN BOCKHORST, staff to the LBC, advised the commission wrote a letter to the Chair expressing three concerns regarding the original legislation. Two were addressed in the CS and the third issue is the subject of the proposed amendment Ms. Jackson spoke to. He preferred to defer his comments until the amendment was available for review. DARROLL HARGRAVES said he sent a letter to the Chair on 4/23 addressed satisfactorily in the CS. CHAIR GARY STEVENS acknowledged the letter was in the file and advised the committee would take action on the bill when they had the intent language from Legislative Legal. DR. DOUGLAS STARK from Homer testified in support of SB 63. CHAIR GARY STEVENS held SB 63 in committee.
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