HB 399 - EXEMPT/DEFERRAL DETERIORATED PROPTY TAX                       
                                                                               
CHAIRMAN TAYLOR recognized the presence of Representative Ryan, the            
prime sponsor of HB 399, which was the next order of business                  
before the committee.                                                          
                                                                               
REPRESENTATIVE JOE RYAN, prime sponsor of HB 399, noted that the               
incorrect committee substitute was placed in the packet passed out             
of the House but it has since been replaced by the correct version.            
Representative Ryan urged the committee to bring forward the Senate            
Judiciary CS, which takes care of many of the concerns regarding               
the renovation that must go forward so that people will not be able            
to speculate.  Representative Ryan noted that another concern was              
that people would let their property deteriorate and take advantage            
of the taxes.  In 1986, the Fairbanks (indisc.) hotel was valued at            
$2,341,555, while its value today is $38,910, and the mill rate on             
the land only was 19.356, and 11.25 on the improvements.                       
Representative  Ryan said that it would take a couple hundred years            
to make up the value in the tax break for the loss of value of                 
property due to its deterioration.                                             
                                                                               
REPRESENTATIVE RYAN explained that HB 399 basically gives the                  
municipality another tool to clean up deteriorated property so that            
it is revitalized and back on the tax rolls where it can earn                  
income for the city and improve the neighborhood.  He emphasized               
that everything in this bill is strictly voluntary.                            
                                                                               
CHAIRMAN TAYLOR pointed out the significant modification in the CS.            
He directed members to page 1, line 7, which adds, "after the day              
substantial rehabilitation and renovation begins."  He noted it                
does the same thing on page 1, line 12, which says, "after the day             
rehabilitation begins."  He said the original bill received did not            
contain a triggering date, and it could have allowed property to               
lie fallow, should the city vote to do so.  He asked whether this              
change would modify the title.                                                 
                                                                               
REPRESENTATIVE RYAN said he would take responsibility for that.                
                                                                               
SENATOR PARNELL made a motion to adopt as a working draft SCS HB               
399(JUD), Version B, Cook, 4/20/98.  There being no objection, it              
was so ordered.                                                                
                                                                               
CHAIRMAN TAYLOR expressed appreciation to Representative Ryan, who             
had to leave for a House floor session.                                        
                                                                               
Number 143                                                                     
                                                                               
MARK MARLOW (ph) came before the committee to testify.  He pointed             
out that the newly adopted work draft was unanimously endorsed by              
the Anchorage Assembly.                                                        
                                                                               
CHAIRMAN TAYLOR expressed hope that this legislation will provide              
cities an opportunity to enhance and improve some derelict property            
and get it on the tax roll.  He asked if anyone else wished to                 
testify; there was no response.                                                
                                                                               
Number 150                                                                     
                                                                               
SENATOR PARNELL made a motion to move SCS HB 399(JUD) from the                 
committee with individual recommendations.  There being no                     
objection, SCS HB 399(JUD) moved from the Senate Judiciary                     
Committee.