Legislature(2015 - 2016)SENATE FINANCE 532

04/16/2015 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 9 Presentation: Overview FY17 Operating Budget TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 146 MUNICIPAL TAX EXEMPTION TELECONFERENCED
Moved SCS CSHB 146(CRA) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 16, 2015                                                                                            
                         9:05 a.m.                                                                                              
                                                                                                                                
9:05:10 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 9:05 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Chuck Kopp, Staff, Senator Peter Micciche; Representative                                                                       
Cathy Munoz, Sponsor.                                                                                                           
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Ron Brown, State Assessor, Department of Commerce,                                                                              
Community and Regional Affairs, Community and Economic                                                                          
Development.                                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 9      ELECTION PAMPHLETS                                                                                                    
                                                                                                                                
          SB 9 was HEARD and HELD in committee for further                                                                      
          consideration.                                                                                                        
                                                                                                                                
CSHB 146(CRA)                                                                                                                   
          MUNICIPAL TAX EXEMPTION                                                                                               
                                                                                                                                
          SCS CSHB 146(CRA) was REPORTED out of committee                                                                       
          with a "do pass" recommendation and with one                                                                          
          previously published zero fiscal note: FN2 (CED).                                                                     
                                                                                                                                
SENATE BILL NO. 9                                                                                                             
                                                                                                                                
     "An Act repealing the authority to include certain                                                                         
     material from a political party in the election                                                                            
     pamphlet."                                                                                                                 
                                                                                                                                
9:06:03 AM                                                                                                                    
                                                                                                                                
SENATOR   PETER  MICCICHE,   SPONSOR   explained  that   the                                                                    
legislation   would   repeal   the  authority   to   include                                                                    
advertisements  in election  pamphlets. He  shared that  the                                                                    
inclusions  of advertisements  in  the election  information                                                                    
pamphlet was  too closely aligned  with the ballot.  He felt                                                                    
that it was not worth the 1 percent income.                                                                                     
                                                                                                                                
9:07:34 AM                                                                                                                    
                                                                                                                                
CHUCK  KOPP, STAFF,  SENATOR PETER  MICCICHE, restated  that                                                                    
the bill  would repeal the  three sections in Title  15 that                                                                    
spoke to political party advertising  in the publicly funded                                                                    
general election pamphlet.                                                                                                      
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
Mr. Kopp stated his full name.                                                                                                  
                                                                                                                                
SB  9   was  HEARD  and   HELD  in  committee   for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 146(CRA)                                                                                                
                                                                                                                                
     "An Act relating to a municipal tax exemption for                                                                          
     certain subdivided property."                                                                                              
                                                                                                                                
9:09:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CATHY  MUNOZ,  SPONSOR,  remarked  that  the                                                                    
optional and mandatory exemptions  did not decrease the full                                                                    
and true  value as reported  to the Department  of Education                                                                    
and Early Development (DEED).                                                                                                   
                                                                                                                                
                                                                                                                                
Co-Chair MacKinnon  asked for a  restatement. Representative                                                                    
Munoz  explained that  there was  a  question regarding  the                                                                    
impact  of the  exemption  on a  community's  full and  true                                                                    
value. She stated  that an exemption could  not decrease the                                                                    
full and  true value of  a community's reportable  tax base.                                                                    
There  would be  more sub-divided  property on  the property                                                                    
rolls,  so   the  community's  property  tax   income  would                                                                    
increase.                                                                                                                       
                                                                                                                                
Co-Chair  MacKinnon  understood   that  optional  exemptions                                                                    
reduced  the  true  value.   She  queried  more  information                                                                    
regarding the true value.                                                                                                       
                                                                                                                                
9:11:19 AM                                                                                                                    
                                                                                                                                
RON   BROWN,  STATE   ASSESSOR,   DEPARTMENT  OF   COMMERCE,                                                                    
COMMUNITY  AND  REGIONAL  AFFAIRS,  COMMUNITY  AND  ECONOMIC                                                                    
DEVELOPMENT (via teleconference),  explained that there were                                                                    
two types  of exemptions: mandatory and  optional. Mandatory                                                                    
exemptions acted to  increase the local full  and true value                                                                    
determination  for  the  school  funding  formula.  Optional                                                                    
exemptions,  which  were  concerted   in  HB  146,  must  be                                                                    
appraised by  the local assessor and  reported to Department                                                                    
of Commerce,  Community and Economic Development  (DCCED) in                                                                    
an annual report.                                                                                                               
                                                                                                                                
Senator Olson  wondered if the legislation  would affect the                                                                    
two boroughs  in his district. Representative  Munoz replied                                                                    
that it would be an optional exemption.                                                                                         
                                                                                                                                
Senator Olson surmised that it would  be a tool to further a                                                                    
community's agenda. Representative Munoz agreed.                                                                                
                                                                                                                                
Vice-Chair Micciche assumed that  a local municipality could                                                                    
exempt   the  increased   value,  because   of  a   property                                                                    
subdivision.  Once services  were  received, the  additional                                                                    
assessment could apply. Representative agreed.                                                                                  
                                                                                                                                
Co-Chair  MacKinnon  urged  the municipalities  to  apply  a                                                                    
maximum dollar  amount. She felt  that some  large companies                                                                    
may take advantage of the possible lower tax rates.                                                                             
                                                                                                                                
9:15:35 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:16:11 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Micciche  stated that  there was one  zero fiscal                                                                    
note  from Department  of Commerce,  Community and  Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  MOVED to REPORT  SCS CSHB  146(CRA) out                                                                    
of  committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
SCS CSHB 146(CRA)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation and with  one previously published zero                                                                    
fiscal note: FN2 (CED).                                                                                                         
                                                                                                                                
9:17:35 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:19:53 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   MacKinnon  discussed   the  following   meeting's                                                                    
agenda.                                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:20:34 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:20 a.m.                                                                                          

Document Name Date/Time Subjects
2 SB 9 Sponsor Statement.pdf SFIN 4/16/2015 9:00:00 AM
SB 9
4 SB 9 Repealed Language.pdf SFIN 4/16/2015 9:00:00 AM
SB 9
5 SB 9 Elections Income from Political Ads.pdf SFIN 4/16/2015 9:00:00 AM
SB 9
HB 146 - SCS CSHB 146 Additional Support Documents.pdf SFIN 4/16/2015 9:00:00 AM
HB 146