Legislature(1997 - 1998)
03/11/1998 01:45 PM Senate CRA
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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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