HB 134-PROPERTY TRANSFER TAX; MUNI TELECOMM TAX  8:28:15 AM CHAIR MCCORMICK announced that the next order of business would be HOUSE BILL NO. 134, "An Act prohibiting municipalities from levying a tax on the transfer of real property; prohibiting the state from levying a tax on the transfer of real property; and relating to municipal taxation of mobile telecommunications services." 8:28:25 AM REPRESENTATIVE JULIE COULOMBE, Alaska State Legislature, as prime sponsor, presented HB 134. She paraphrased the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: HB 134 prohibits the state and local governments from imposing real estate transfer taxes, fees, other assessments on sales, grants, assignments, or transfer of real property. A transfer fee is an additional cost that is increasingly being assessed by local and state governments for property transactions in other states. Over the last several years we have seen an increase in tax rates across America. By increasing the cost of purchasing a home, higher transfer taxes have a ripple effect on this pattern of homeownership. Those seeking to be first-time homeowners face great upfront costs to purchase a home, thereby reducing the potential number of first-time homebuyers. Families seeking to purchase larger homes may find it difficult to sell their homes and/or find a home. This impact extends to seniors, who are retired and on fixed incomes and are dependent on selling their homes home to help finance their retirement. In short, transfer tax increases disrupt a lifecycle model of housing, whereby households adjust their housing as their needs change. HB 134 will aid not only homebuyers and sellers, but existing real estate laws overall in Alaska. It reassures the state will not enact additional charges to real estate property purchases which would increase affordability for the housing market and raise real estate economy. I respectfully request the support of my colleagues on HB 134. 8:30:14 AM CHAIR MCCORMICK welcomed invited testifiers. 8:30:40 AM RYLEH BODYSELT gave invited testimony in support of HB 134. She began by mentioning Alaska's several military bases, and that military personnel often face challenges when it comes to finding housing. She stated some of the most "gut wrenching" experiences in her career had been helping clients that are not able to find affordable housing. She opined that HB 134 is needed, as the bill would help fight to keep housing affordable in Alaska. 8:33:19 AM REPRESENTATIVE HIMSCHOOT offered her understanding that military families have programs or federal assistance that help them with buying and selling homes due to the transient nature of serving in the military. 8:33:52 AM MS. BODYSELT confirmed there are programs to help buy and sell homes - most commonly being VA loans - but military personnel must be able to afford it. 8:34:24 AM BARBARA ANGAIAK gave invited testimony in support of HB 134, and she stated the cost of living in Alaska is already high, and affordable housing is a huge factor for families as well as the ability to attract and retain employees in all sectors. Added fees on top of already high prices cause even more problems, she concluded. 8:37:46 AM MARK MASLEY gave invited testimony in support of HB 134, and expressed his belief that the bill is critical for the future of home ownership in Alaska. As other testifiers have noted, he acknowledged that Alaska is facing an affordable housing crisis. The potential for a transfer tax could harm current and future homeowners, in particular first-time buyers, who are already facing rising interest rates, property taxes, and significant financial challenges that affect their ability to purchase a home. Senior citizens on fixed incomes, he explained, could also be significantly impacted by a transfer tax. He urged the committee to support HB 134 and thanked them for their time. 8:40:29 AM LARRY BURKE gave invited testimony in support of HB 134. He explained that the transfer tax is separate from recorded mortgage taxes; the transfer tax is not tax deductible on federal taxes. He stressed his support for moving HB 134 out of committee. 8:42:23 AM CALLIE BACON, Seward Properties, gave invited testimony in support of HB 134. She stated that a transfer tax on the sale of real estate would be harmful to the residents of rural Alaska, and she noted 45 percent of all buyer clients served in 2022 were first-time buyers, and affordability is already a challenge. People in rural communities such as Seward, she explained, cannot afford a real estate transfer tax. She stressed her opposition to the transfer tax and her support for the passage of HB 134 that it may be heard by the full body. 8:44:33 AM TERRY BRYAN gave invited testimony in support of HB 134 and provided a brief background of his time in title insurance. He said that although title companies would not be directly impacted by the implementation of transfer fees, he is still in support of HB 134. Adding any additional expense to home ownership would force many first-time home buyers out of the market. Being the real estate industry is a key economic force in the state of Alaska, the legislature should look at ways to support and ensure the state's growth, not to impede or handicap the path to homeownership. He stated he personally and professionally supports HB 134. 8:48:04 AM CHAIR MCCORMICK opened public testimony on HB 134. 8:48:14 AM NILS ANDREASSEN, Alaska Municipal League, gave testimony during the hearing of HB 134. He stated not being sure if the bill addresses housing costs in Alaska, and the lack of definition within the bill does not help clarify what a transfer is applied to and would require a definition of "transfer" to be applicable. He highlighted a specific concern about the ambiguity of the bill and its effect on local government, and its intent to address the housing crisis Alaska is facing. He encouraged the committee to spend time on the housing crisis, as well as the many other costs involved in housing consideration. 8:51:11 AM TONJA MOSER, representing self, testified in support of HB 134. She noted her disagreement with the last testifier, but said she understood his intent. She stated her concern is that adding another tax to an already expensive transaction would make housing more unaffordable than it already is. She urged the committee to work towards positive solutions for affordable housing. 8:52:43 AM CHAIR MCCORMICK, after ascertaining there was no one else who wished to testify, closed public testimony on HB 134. 8:52:56 AM REPRESENTATIVE COULOMBE thanked the committee for hearing the bill, and to the testifier referencing definitions, she confirmed that there are statutory definitions for transferring real property that can be given to the committee. 8:53:36 AM CHAIR MCCORMICK announced that HB 134 was held over.