CS FOR HOUSE BILL NO. 121(FIN) "An Act relating to and authorizing certain municipalities to provide a property tax credit for an improvement that aids in improving air quality." 9:46:27 AM Co-Chair Hoffman MOVED to adopt Work Draft 26-LS0540\T, Cook, 4/14/09. Co-Chair Stedman OBJECTED for discussion. DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, explained that the CS adds one section to the bill, section 2. The section provides a municipal tax exemption for non-profit universities. The municipality must enact the exemption by ordinance. The provision would put the Alaska Pacific University on the same property tax footing as the University of Alaska in the municipality of Anchorage. He referred to a letter endorsing the legislation from former municipal mayor Mark Begich (Copy on File). In addition, the Anchorage municipal assembly enacted a resolution endorsing the measure (Copy on File). University of Alaska president Mark Hamilton also wrote in support (Copy on File). He did not think there was opposition. Senator Thomas asked for more information regarding lines 23 to 25 in the CS. STEVE VANSANT, STATE ASSESSOR, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT (testified via teleconference), replied that he had not seen the amendment, although he assumed the language was the same as the language in HB 10. The language would allow municipal taxation on lands that the universities may lease to private industry for private business. He gave an example of how the provision could work. 9:50:29 AM Senator Huggins asked if Alaska Pacific University falls in the category of property of a private, nonprofit four-year college. Mr. VanSant replied in the affirmative. 9:51:00 AM AT EASE 9:51:13 AM RECONVENED Co-Chair Stedman removed his OBJECTION to the adoption of the CS. There being NO further OBJECTION, it was so ordered. Co-Chair Hoffman MOVED that the committee request a title change resolution as a title change would be needed. There being NO OBJECTION, it was so ordered. KAREN LIDSTER, STAFF, REPRESENTATIVE JOHN COGHILL, SPONSOR, explained that the CS includes the municipal tax; when the bill became HB 121, it was a request by the municipality of Fairbanks and an attempt to deal with issues of non- attainment, or specifically air quality called 2.5PM. The bill would allow the municipalities to adopt an ordinance and provide a tax credit to individuals that made improvements in heating mechanisms to help with air quality. The bill deals only with municipalities that have within their boundaries areas that fail to meet federal or state quality standards for fine particulates known as 2.5PM. Co-Chair Stedman asked which municipalities qualify. Ms. Lidster answered that at this time the municipalities of Fairbanks and Juneau qualify. 9:54:10 AM MARTY MCGEE, ASSESSOR, MUNICIPALITY OF ANCHORAGE (testified via teleconference), stated that he was surprised by the amendment which appears to carry the language from HB 10. He reported that the municipality had worked with the committee and the sponsor to modify the language in HB 10. To the extent that the language is the same, the municipality does not object to the proposal. SHARON WEDDELTON, CHIEF FISCAL OFFICER, MUNICIPALITY OF ANCHORAGE (testified via teleconference), echoed surprise that the municipality was not notified about the amendment. She stated disappointment. She had no additional comments. Co-Chair Stedman explained that things can, on occasion, move quickly late in the session. CS HB 121(FIN) was HEARD and HELD in Committee for further consideration.