SB 106-MUNI TAX EXEMPTION: ECON DEVEL PROPERTY  3:44:52 PM CHAIR BISHOP announced the consideration of SB 106, sponsored by Senator John Coghill. 3:45:15 PM RYNNIEVA MOSS, staff to Senator John Coghill, Alaska State Legislature, Juneau, Alaska, provided an overview of SB 106 for the sponsor. It allows municipalities to provide partial or a total exemption for a time period to determine property tax exemptions or deferrals for economic development projects. She said this bill has a committee substitute (CS) [CSSB 106 ( ), version 30-LS0797\D] that corrects the earlier bill's format. 3:46:19 PM MS. MOSS provided a sectional analysis. Sec 1. Removes the five year limitation on economic development property exemptions and deferrals. Removes renewals provision and the limit on property tax exemptions for renewals. (m)(1) Eligibility for economic development property exemption is based on one qualifier instead of multiple qualifiers. Adds a qualifier for property development that "enables a significant capital investment in physical infrastructure that: 1. Expands the tax base of the municipality; and 2. Will generate property tax revenue after the exemption expires. For example, the MatSu assessor has provided information on the sports center that was built. The land had an assessed value prior to construction of $294,000. Today that land with the building is assessed at $6,998,300. The approximate tax bill on the land prior to the exemption was $4,900. The average tax bill on the land and building today is $102,500. The total taxes generated on this land since the exemption is $615,100. Had the improvements not been made, that would have been about $5,200 and a total of $31,500. So, it's a significant advantage and a tool for municipalities to use to generate revenues in times when they are losing state funds. 3:48:20 PM Sec. 3. Makes optional what is now a mandated 2 percent tax exemption for a fire protection systems, and sec. 4 repeals the language that mandates that exemption. 3:49:37 PM SENATOR GARDNER said she is familiar with the context of the bill and it is a priority for her community. 3:50:04 PM At ease. 3:50:59 PM CHAIR BISHOP called the committee back to order. SENATOR STEDMAN moved to adopt the CSSB 106, version 30- LS0797\D, as the working document. 3:51:08 PM CHAIR BISHOP objected for discussion purposes. He asked Ms. Moss if the repealer in sec. 3 talks about a percentage decrease for sprinklers. MS. MOSS answered that is correct. 3:51:51 PM SENATOR GARDNER asked if the repealer of the mandated 2 percent is still in the bill. MS. MOSS answered yes, and Sec. 2 makes it optional. 3:52:17 PM CHAIR BISHOP said the next committee of referral is State Affairs. MS. MOSS said that was correct. 3:52:27 PM CHAIR BISHOP removed his objection and version D was adopted. 3:52:33 PM SENATOR STEDMAN moved to report the [CS for] SB 106 from committee with individual recommendations and attached fiscal note(s). CHAIR BISHOP announced that without objection, CSSB 106(CRA) moved from the Senate Community and Regional Affairs Standing Committee.