HOUSE BILL NO. 27 An Act relating to an optional exemption from municipal property taxes on certain residences of law enforcement officers. REPRESENTATIVE MAX GRUENBERG, SPONSOR, explained that the purpose of the bill was to encourage law enforcement officers to purchase homes and live in areas needing additional police protection. It would allow municipalities to pass an ordinance giving an exemption of up to $150,000 of assessed valuation on the primary permanent residence of any law enforcement officer who lives in a high crime area. The bill permits a municipality, by ordinance, to designate areas in which the primary permanent residence owned and occupied by a law enforcement officer would be exempted from taxation up to $150,000 of the assessed valuation per officer/owner-occupant (up to a maximum of $300,000 assessed valuation per property.) Representative Gruenberg pointed out that the ordinance must define "law enforcement officer" and designate specific areas, as either: · (1) Areas eligible under governmental programs allowing special assistance for urban development, neighborhood revitalization, or law enforcement, or · (2) Statistically high crime areas. Representative Gruenberg advised that there would be no cost to the State for the program. JIM GASPER, (TESTIFIED VIA TELECONFERENCE), POLICE OFFICER, PUBLIC SAFETY EMPLOYEES ASSOCIATION, ANCHORAGE, noted that he represents over 200 municipal police officers throughout the State. He thought that the bill was drafted to provide discretion to the municipalities that want to participate in the program. He stated that it is a good method of advancing the concept of community policing. It could be extended to State police for policing high crime areas. He thought it would be good policy for the State and voiced support for the bill. 3:44:17 PM STEVE VAN SANT, (TESTIFIED VIA TELECONFERENCE), STATE ASSESSOR, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, ANCHORAGE, voiced appreciation to Representative Gruenberg for addressing the concerns of the State Assessor's office. He voiced support for the bill. 3:44:58 PM Representative Gruenberg clarified the conceptual Amendment #1, Subsection (s) on Page 1, Line 8 amended to read: "(s) A municipality may be ordinance designate an area within its boundaries that is an eligible area and exempt from taxation an amount not to exceed $150,000 of the assessed value of real property within the area [that is] if the property is primarily residential and owned and occupied as the primary permanent place of abode by a law enforcement officer for the entire parcel." In response to a query by Vice-Chair Stoltze, Representative Gruenberg explained that if the parcel were a zero lot line, then it would be able to occur. However, if there was a triplex or duplex on the land and it was titled as a single parcel, it could be divided. The most that can be received is $150,000 dollars. Representative Kelly asked why would the State want to encourage two police in the same area. Representative Gruenberg responded, they could be a social unit such as a family or two people that were co-tenants. Representative Kelly thought there could be potential for abuse. Representative Gruenberg replied that at least in the Mountain View area, it would be unlikely to find any properties of that value. Representative Croft MOVED to ADOPT conceptual Amendment #1. Co-Chair Chenault OBJECTED. After looking at the printed version of the conceptual amendment, Co-Chair Chenault WITHDREW his OBJECTION. There being NO further OBJECTION, conceptual Amendment #1 was adopted. 3:53:37 PM Vice-Chair Stoltze asked about constitutional issues regarding the police department and where they reside. Representative Gruenberg was not aware of anything that could prohibit it in the future. Co-Chair Chenault noted that in his area, it is required that the troopers live within the city limits. He thought that the legislation would help police officers out. 3:55:39 PM Representative Kelly suggested adding language: "No more than one exemption for the same property be granted". Representative Gruenberg suggested that if that language was adopted, it would be important to strike the sentence from Lines 8-10. Representative Kelly MOVED to ADOPT Conceptual Amendment #2. 3:58:50 PM Representative Hawker OBJECTED for discussion purposes. He thought that the amendment could put the primary focus on the residential location. He questioned if the exemption should track the property or the people working as law enforcement officers. He mentioned that he wanted to see every law enforcement officer have the option of the proposal. Representative Croft suggested deleting language on Lines 8- 10. Co-Chair Chenault agreed, however, noted that on Line 6, the taxation may not exceed $150,000 assessed value. He supported one exemption. 3:57:57 PM Vice Chair Stoltze recommended inserting the language: "Only one exemption". 4:00:46 PM Representative Hawker WITHDREW his OBJECTION to Amendment #2. Representative Gruenberg supported the verbiage proposed by Vice Chair Stoltze. 4:01:25 PM Co-Chair Chenault OBJECTED to conceptual Amendment #2 as he foresaw more problems related to marital status and spousal issues. Representative Croft thought that removal of that sentence could allow the municipalities to decide. He did not think it would do much harm. Co-Chair Meyer thought that if it was modeled after the senior exemption, it should be consistent. Representative Gruenberg replied that it was modeled after a different statute, AS 29.45.050, regarding the granting of exemptions for same property. Representative Kelly WITHDREW conceptual Amendment #2. 4:04:59 PM Representative Gruenberg requested that the bill drafter insert the language from conceptual Amendment #1 where it is most appropriate. 4:05:56 PM Representative Foster MOVED to REPORT CS HB 27 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HB 27 (FIN) was reported out of Committee with "individual recommendations" and with zero note #1 by the Department of Commerce, Community & Economic Development.