Legislature(1997 - 1998)

03/11/1998 01:45 PM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
    SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                              
                    March 11, 1998                                             
                      1:45 p.m.                                                
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Jerry Mackie, Chairman                                                 
Senator Gary Wilken , Vice Chairman                                            
Senator Dave Donley                                                            
Senator Randy Phillips                                                         
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Senator Lyman Hoffman                                                          
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
SENATE BILL NO. 325                                                            
"An Act relating to an optional municipal tax exemption for real               
property occupied as the primary residence and permanent place of              
abode by a resident who is the owner and is disabled."                         
                                                                               
PREVIOUS SENATE COMMITTEE ACTION                                               
                                                                               
SB 325 - No previous action to record.                                         
                                                                               
WITNESS REGISTER                                                               
                                                                               
Senator Sean Parnell                                                           
State Capitol                                                                  
Juneau, AK 99801-1182                                                          
  POSITION STATEMENT:  Prime Sponsor of SB 325                                 
                                                                               
Ms. Kim Metcalfe-Helmar, Special Assistant                                     
Department of Community & Regional Affairs                                     
P.O. Box 112100                                                                
Juneau, AK 99811-2100                                                          
  POSITION STATEMENT:  Department supports SB 325                              
                                                                               
Ms. Bertha Shimoe-Strong                                                       
P.O. Box 141552                                                                
Anchorage, AK 99514                                                            
  POSITION STATEMENT:  Testified in support of SB 325                          
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-7, SIDE A                                                              
                                                                               
Number 001                                                                     
                                                                               
           SB 325 - PROPERTY TAX EXEMPTION FOR DISABLED                        
                                                                               
CHAIRMAN MACKIE called the Senate Community & Regional Affairs                 
Committee meeting to order at 1:45 p.m., and noted the presence of             
Senators Wilken, Phillips and Mackie.                                          
                                                                               
CHAIRMAN MACKIE introduced SB 325 as the only of business.                     
                                                                               
SENATOR SEAN PARNELL, prime sponsor of SB 325, explained the                   
legislation was requested by a constituent who is 100 percent                  
permanently disabled.  The gentleman is unable to work, living on              
a fixed income, while his property taxes continue to increase.                 
This constituent queried his office as to why a person who                     
experiences disabilities could not have the same exemption as                  
provided to senior citizens in statute, and SB 325 is an attempt               
to represent him and all those similarly situated Alaskans.  He                
added it is his way of raising the policy discussion to a public               
level.                                                                         
                                                                               
SB 225 provides for an optional municipal tax exemption for real               
property occupied as the primary residence by a person who is the              
owner and is disabled.  The bill merely provides the authority and             
option to local governments without mandating the tax exemption.               
It leaves it up to local governments to establish perimeters and               
definitions related to the exemption.                                          
                                                                               
Senator Parnell read into the record a portion of a letter of                  
support from Mary Jane Michael, Executive Director of the Arc of               
Anchorage:                                                                     
                                                                               
"The Arc of Anchorage is a non-profit organization providing an                
array of services and supports for people who experience                       
disabilities in the Anchorage community.  I strongly support your              
efforts to assist individuals with disabilities in obtaining a tax             
exemption on their primary residence.  Your efforts would greatly              
enhance their ability to become homeowners and provide stability to            
their lives.  Finding accessible housing in the Anchorage community            
is next to impossible, and many people are faced with unsuitable               
rental accommodations.  This is further compounded by the fact                 
that many of these individuals are employed at minimum wages or                
survive on benefits alone.  Your bill will complement existing                 
programs, like the home ownership program with Alaska Housing                  
Finance Corporation, furthering the opportunities for home                     
ownership by people who experience disabilities."                              
                                                                               
Concluding his testimony, Senator Parnell said SB 325 has the                  
following benefits:  it will provide greater independence; it will             
provide greater stability; and it will provide greater opportunity             
for people who experience disabilities.  He urged the committee's              
support for the legislation.                                                   
                                                                               
Number 052                                                                     
                                                                               
CHAIRMAN MACKIE asked Senator Parnell to explain why he opted not              
to adopt the language that currently exists in state statutes in               
terms of defining what "disabled" means.  SENATOR PARNELL explained            
that he intentionally left that up to the local government to                  
define "disabled" as well as the perimeters of what evaluations of             
property they might exempt because he thought those issues were                
properly left to the local governing body.                                     
                                                                               
CHAIRMAN MACKIE inquired what the current mill rate is for real                
property in Anchorage.  SENATOR PARNELL answered that it varies                
from 17 to 21 mills, depending upon the location.                              
                                                                               
Number 085                                                                     
                                                                               
SENATOR PHILLIPS referred to line 7 of the bill and the phrase                 
"primary residence and permanent place of abode," and he asked if              
there was a reason for having it worded that way.  SENATOR PARNELL             
responded that it was a drafting choice made by the drafter,                   
however, he thought it may mirror the language in the senior                   
citizen tax exemption statute.                                                 
                                                                               
Number 100                                                                     
                                                                               
SENATOR WILKEN related that in a recent discussion with Mayor Hove             
of the Fairbanks North Star Borough, the intent of the legislation             
was applauded, but concern was expressed about what the cost of                
this legislation would be to local governments, and it was likened             
to the senior citizen property tax exemption which costs the                   
borough $27 million a year.  Senator Wilken asked if any                       
municipality has indicated that this  type of program should be                
offered.  SENATOR PARNELL replied that he has not heard from any               
local governments, but he is more concerned with constituents who              
see this need and want him to address it.  He reiterated that the              
program is optional to local governments and that's why it is                  
different then the senior exemption.  SENATOR WILKEN countered that            
once the program is made available, it puts the local governments              
in a difficult "do it, or else" type of situation.                             
                                                                               
                                                                               
SENATOR WILKEN asked Senator Parnell if had any idea how much this             
would cost if half of the disabled Alaskan property owners would               
take advantage of this program.  SENATOR PARNELL said there is no              
way to put a number on it because each local government will decide            
the level of exemption, what property evaluation the exemption                 
applies to, and who is defined as "disabled."                                  
                                                                               
Number 146                                                                     
                                                                               
CHAIRMAN MACKIE commented that right now the state mandates the                
property tax exemption for senior citizens all across the state                
whereas this exception would be optional.  He said he thinks a good            
argument could be made that senior citizens are exempted from                  
property taxes regardless of their personal wealth or physical                 
ability, while at the same time, someone who has a disability with             
no wealth is not exempted.                                                     
                                                                               
SENATOR PARNELL, addressing Senator Phillips' question concerning              
the language  "primary residence and permanent place of abode,"                
confirmed that AS 29.45.030, which relates to the senior citizen               
tax exemption, contains the identical language.                                
                                                                               
CHAIRMAN MACKIE suggested that as the bill moves through the                   
process, it would be helpful to have information on the number of              
disabled Alaskans that possibly would qualify for this program,                
especially if the issue of the cost of the program continues to be             
raised.                                                                        
                                                                               
Number 195                                                                     
                                                                               
KIM METCALFE-HELMAR, Special Assistant, Department of Community &              
Regional Affairs, voiced the department's support for SB 325                   
because they believe there should be local control on these kinds              
of programs.  However, she said they do have a concern with the                
lack of a definition of "disability" in the bill because of the                
possibility of local governments having different definitions for              
the word.  The department believes that if this program were to                
initiated, it would be better to get the term defined at the                   
outset.                                                                        
                                                                               
CHAIRMAN MACKIE noted the arrival of Senator Donley.                           
                                                                               
Number 252                                                                     
                                                                               
BERTHA SHIMOE-STRONG, representing the People First advocacy group             
and speaking in support of SB 325, said she also belongs to the Key            
Coalition, as well as serving on a couple of housing boards.  She              
related she has a birth defect, as well as having suffered a head              
injury in 1987.                                                                
                                                                               
Ms. Shimoe-Strong pointed out that there are a variety of people               
that are disabled in different ways and to different degrees.                  
However, she is concerned that some people with just a broken leg              
or a broken arm would say that they are disabled, and she suggested            
possibly adding the word "permanently" before the word "disabled,"             
requiring a doctor's certificate verifying the disability, and                 
possibly instituting a sliding fee according to income.                        
                                                                               
Ms. Shimoe-Strong advised that if the committee is interested in               
getting statistics on the number of disabled persons in the state,             
to contact the Social Security Administration and Adult Public                 
Assistance.                                                                    
                                                                               
Ms. Shimoe-Strong restated her strong support for SB 325.  She said            
most disabled are at the poverty level, and this would help to make            
them self-sufficient and to improve on their development of                    
leadership.                                                                    
                                                                               
Number 320                                                                     
                                                                               
SENATOR PARNELL said it was always his intent that this legislation            
should apply to the permanently disabled and that he agreed with               
Ms. Shimoe-Strong that the would "permanently" should be inserted              
before "disabled."                                                             
                                                                               
Number 330                                                                     
                                                                               
SENATOR DONLEY said he has spent some time looking at other                    
handicapped laws, but he has found that over the years the                     
guidelines that were put into place for the handicapped parking law            
have been really manipulated by people who didn't deserve that                 
privilege.  He said it is so unfair to the people who truly need               
assistance when the not truly needy abuse the system, and then it              
turns the public against the preference.  He suggested that as the             
bill moves through the system working on a definition that keeps               
that kind of abuse from happening in this program.                             
                                                                               
Number 365                                                                     
                                                                               
SENATOR WILKEN stated that before moving SB 325 out of committee he            
would like to see some work done on the definition of "permanently             
disabled," as well as getting a sense of what the cost to local                
governments might be.                                                          
                                                                               
Number 390                                                                     
                                                                               
CHAIRMAN MACKIE asked if there was a motion to add the                         
"permanently" to the language in the bill.                                     
                                                                               
SENATOR DONLEY moved to add the word "permanently" before the word             
"disabled" on page 1, lines 3 and 8.  Hearing no objection,                    
CHAIRMAN MACKIE stated the amendment was adopted.                              
                                                                               
There being no further testimony on SB 325, CHAIRMAN MACKIE stated             
SB 325 would be held in committee so further work could be done on             
the legislation, and that it would be back before the committee on             
Wednesday, March 18 .  He then adjourned the meeting at 2:12 p.m.              

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