HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE January 31, 1995 1:02 p.m. MEMBERS PRESENT Representative Ivan Ivan, Co-Chair Representative Alan Austerman, Co-Chair Representative Jerry Mackie Representative Kim Elton Representative Al Vezey Representative Pete Kott Representative Irene Nicholia MEMBERS ABSENT None OTHER LEGISLATORS PRESENT Representative Mark Hanley COMMITTEE CALENDAR * HB 86: "An Act relating to municipal property taxes." PASSED OUT OF COMMITTEE * HB 80: "An Act relating to the approval, change or vacation of subdivision plats in areas outside boroughs, in the unorganized borough outside of cities, and in the third class boroughs, and relating to the definitions of 'street' and 'subdivision'." HEARD AND HELD WITNESS REGISTER MARK HANLEY, House Representative Alaska State Legislature State Capitol Building Rm. 507 Juneau, AK 99801 Telephone: (907) 465-4939 POSITION STATEMENT: Introduced HB 86 as bill sponsor STEVE VAN SANT, State Assessor Department of Community and Regional Affairs Anchorage Legislative Office 716 W 4th Ave. Ste. 200 Anchorage, AK 99501-2133 Telephone: (907) 269-4605 POSITION STATEMENT: Commented on HB 86 CHARLES DEVILLE P.O. Box 362 Cordova, Alaska 99574 Telephone: (907) 424-3310 BARBARA LACHER, Mayor Mat-su 350 E. Dahlia Palmer, AK 99645 Telephone: (907) 745-4801 JEANNETTE JAMES, House Representative Alaska State Legislature State Capitol Building Rm. 102 Juneau, AK 99801 Telephone: (907) 465-3743 POSITION STATEMENT: Introduced HB 80 IKE WAITS, Chief Planner Division of Municipal & Regional Assistance Department of Community and Regional Affairs 333 W 4th Ave. Ste 319 Anchorage, AK 99501 Telephone: (907) 269-4500 POSITION STATEMENT: Supported comments made by Mr. Elliot RICK ELLIOT, Municipal Lands Trustee Community and Regional Affairs 333 W 4th Ave. Ste. 319 Anchorage, AK 99501 Telephone: (907) 269-4500 POSITION STATEMENT: Answered questions concerning HB 80. PATRICK KALEN, Surveyor American Congress on Surveying and Mapping 5410 Grosbenor Lane Bethesda, MD 20814 POSITION STATEMENT: Supported HB 80 RON SWANSON, Director Division of Land Department of Community and Regional Affairs 3601 C St., Ste. 1122 Anchorage, AK 99503-5947 Telephone: (907) 762-2692 POSITION STATEMENT: Answered questions pertaining to HB 80. MO AO MENZIES, Surveyor R & II Engring Box 34278 Juneau, AK 99801 Telephone: (907) 780-6060 POSITION STATEMENT: Commented on HB 80 PREVIOUS ACTION BILL: HB 86 SHORT TITLE: MUNICIPAL PERSONAL PROPERTY TAXATION SPONSOR(S): REPRESENTATIVE(S) HANLEY, Kohring, Bunde CURRENT STATUS: (H) RLS STATUS DATE: 02/01/95 TITLE: "An Act relating to municipal property taxes." JRN-DATE JRN-PG ACTION 01/17/95 50 (H) READ THE FIRST TIME - REFERRAL(S) 01/17/95 51 (H) COMMUNITY & REGIONAL AFFAIRS 01/18/95 75 (H) COSPONSOR(S): KOHRING 01/26/95 148 (H) COSPONSOR(S): KOHRING-1ST COSPONSOR 01/31/95 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 80 SHORT TITLE: DNR APPROVAL OF PLATS IN UNORG BOROUGH SPONSOR(S): REPRESENTATIVE(S) JAMES CURRENT STATUS: (H) FIN STATUS DATE: 02/27/95 THEN RLS JRN-DATE JRN-PG ACTION 01/13/95 41 (H) PREFILE RELEASED 01/16/95 41 (H) READ THE FIRST TIME - REFERRAL(S) 01/16/95 41 (H) COMMUNITY & REGIONAL AFFAIRS, RESOURCES 01/31/95 (H) CRA AT 01:00 PM CAPITOL 124 ACTION NARRATIVE MINUTES FOR THIS MEETING WERE PREPARED USING LOG NOTES AS TAPES WERE LOST. Number 000 CO-CHAIR IVAN IVAN opened the meeting at 1:02 p.m. and proceeded to review the committee agenda. HCRA - 01/31/95 MINUTES FOR THIS MEETING WERE PREPARED USING LOG NOTES AS TAPES WERE LOST. HB 86 - MUNICIPAL PERSONAL PROPERTY TAXATION Number 041 CO-CHAIR IVAN invited Representative Hanley to come forward and introduce HB 86. REPRESENTATIVE MARK HANLEY came forward to read the sponsor statement as well as offered explanations for the bill. Number 132 CO-CHAIR IVAN recognized the attendance by Representatives Mackie and Nicholia. Number 143 REPRESENTATIVE AL VEZEY posed a question of Representative Hanley to which Representative Hanley answered. Number 187 CO-CHAIR IVAN asked if this was considered last year. Number 195 REPRESENTATIVE HANLEY responded by saying that there had been committee hearings concerning this issue making everyone aware of what was going on. Number 206 CO-CHAIR IVAN asked if the option was available for municipalities to look at the revenue. Number 213 REPRESENTATIVE MACKIE asked a question. Number 220 REPRESENTATIVE HANLEY gave an explanation of the property tax in that they had created a new heading under which such items such as camper shells and snow machines would fall. He also talked about municipalities getting the right to set their own flat fee on property. Number 237 REPRESENTATIVE MACKIE wanted to know what other kinds of things would be exempted under this bill. Number 241 REPRESENTATIVE HANLEY answered that all types of personal property could be exempted. Number 263 REPRESENTATIVE MACKIE asked what properties have been exempted. Number 271 REPRESENTATIVE HANLEY replied what the process was exactly. Number 273 REPRESENTATIVE MACKIE asked another question. Number 275 REPRESENTATIVE HANLEY answered. Number 277 REPRESENTATIVE VEZEY questioned leased property. Number 280 REPRESENTATIVE HANLEY answered that currently leased property is eligible to be taxed. Number 292 REPRESENTATIVE VEZEY noted that he felt Section 4 to be poorly worded. Number 299 REPRESENTATIVE HANLEY said it would be up to the local community to decide upon whether to tax leased property or not. Number 313 REPRESENTATIVE VEZEY wanted to know why the wording would be changed because it states the same thing now. Number 320 REPRESENTATIVE HANLEY asked Representative Vezey if he didn't even want Section 4. Number 324 to Number 354 Indisc. Number 361 REPRESENTATIVE HANLEY said that airplanes would under this bill be taxed a flat fee rather than based upon a stated assessed value. Number 370-382 Indisc. Number 384 REPRESENTATIVE ELTON questioned that nothing in the bill would affect the state assessors job. If a flat fee would be generated by the local community, then the need for an assessor would diminish. Number 395 REPRESENTATIVE HANLEY responded that Representative Elton would need to ask the state assessor himself. Number 398 REPRESENTATIVE MACKIE moved to accept the proposed amendments. Number 402 CO-CHAIR IVAN heard no objections and it was so ordered. Number 404 REPRESENTATIVE MACKIE asked Representative Hanley a question. Number 413 REPRESENTATIVE HANLEY answered and gave an explanation. Number 426 CO-CHAIR IVAN invited Steve Van Sant from Anchorage to come on line and offer his testimony. Number 429 STEVE VAN SANT, the state assessor, mentioned that he would like to remove Section 4. He put forth comments from his end regarding HB 86. Number 450 CO-CHAIR IVAN welcomed any questions or comments from the committee. Also at this point, Representative Vezey left. Number 455 CHARLES DEVILLE from Cordova stated that he was a boat owner and had five vessels, and he wanted to know the standing on taxing documented or undocumented vessels. Number 468 REPRESENTATIVE HANLEY replied that boats would just fall under the category of adhering to a flat tax. Number 485 MR. DEVILLE stated he appreciated the time given to him by the committee to testify. Number 488 CO-CHAIR IVAN welcomed the comments of Patricia Fisher from Cordova. Number 489 PATRICIA FISHER testified in support of HB 86. Number 494 CO-CHAIR IVAN welcomed the testimony of Scott Novak from Cordova. Number 496 SCOTT NOVAK supported HB 86 and with the amendment he felt it was a better bill. Number 519 CO-CHAIR IVAN asked committee member if they had any further comments or questions concerning HB 86. Number 525 REPRESENTATIVE MACKIE moved to pass the committee substitute for HB 86 out of the committee with committee recommendations. Number 533 BARBARA LACHER broke in from Mat-su to say they did support HB 86. Number 543 Indisc. Number 546 CO-CHAIR IVAN heard no objections and was so ordered. HCRA - 01/31/95 MINUTES FOR THIS MEETING WERE PREPARED USING LOG NOTES AS TAPES WERE LOST. HB 80 - DNR APPROVAL OF PLATS IN UNORG BOROUGH CO-CHAIR IVAN then went on to invite Representative Jeannette James to come forward to introduce HB 80 as the bill sponsor. Number 567 REPRESENTATIVE JEANNETTE JAMES came forward and read the sponsor statement for HB 80 and explained the purpose behind HB 80. One problem she felt the bill had was in trying to define the word 'subdivision' such the Department of Transportation couldn't come and ask for certain things to be exempted. She mentioned that this bill was around during the last legislative session and she hoped that this issued could be resolved during this session. Number 614 CO-CHAIR IVAN recognized the attendance of Representative Davies. Number 618 REPRESENTATIVE MACKIE asked a question of Representative James concerning HB 80 to which she answered. Number 626 CO-CHAIR IVAN invited other committee members to come forth with their questions and comments. He then went on to recognize Ike Waits on teleconference from Anchorage. Number 633 IKE WAITS stated that he wanted Rick Elliot to proceed with is testimony first and that he was just there to offer backup and support. Number 638 CO-CHAIR IVAN invited Rick Elliot to come forward to testify. Number 639 RICK ELLIOT listed points of importance concerning HB 80. The first being that the language should be clarified more with all the exemptions listed in one paragraph. The second point he mentioned was the exception of leasing as a municipal trust land and to include as exempted, subdivision. His third point was to specify the limited amendment to the statement and make it simple. Number 688 CO-CHAIR IVAN asked for questions or comments from the committee. Number 689 REPRESENTATIVE JAMES stated that she would look at the changes proposed for HB 80. Number 693 Indisc. Number 701 RICK ELLIOT spoke on teleconference from Anchorage to say that he was open to questions or comments concerning HB 80. Number 000 CO-CHAIR IVAN also invited comments and then recognized Pat Kalen in Fairbanks and asked him to give his testimony. Number 014 PATRICK KALEN stated that he commended Representative James for her work with HB 80. He mentioned some concerns that he had regarding this bill including subdivisions and existing write-ups. He also was concerned over the attempts by the Department of Transportation to request that they be exempted from certain taxes. He has worked and followed this bill since it was a Senate Bill in the 17th Legislature. Number 130 CO-CHAIR IVAN introduced Ron Swanson on teleconference from Anchorage. Number 135 RON SWANSON, made several comments regarding HB 80. Number 189 CO-CHAIR IVAN recognized Representative Mackie. Number 191 REPRESENTATIVE MACKIE asked Mr. Swanson a question regarding plats. Number 211 MR. SWANSON answered the question concerning plats. Number 227 REPRESENTATIVE MACKIE wanted to know if everyone had been looking at this realistically and at the present ability to be able to handle this platting situation. Number 239 MR. SWANSON stated that it was not his intent to lower the number of surveyors in the state of Alaska. Number 249 REPRESENTATIVE JAMES stated that she was still concerned over Section 4. Number 263 REPRESENTATIVE MACKIE questioned the program receipts. Number 291 REPRESENTATIVE JAMES asked if they were going to continue as it were. Number 304 CO-CHAIR IVAN put forth his own comments on the issue. Number 319-340, Indisc. Number 342 MO AO MENZIES testified in support of HB 80. Number 392 CO-CHAIR IVAN invited question and comments from anyone. Number 394 REPRESENTATIVE MACKIE had a question to which Mr. Menzies answered. Number 406 CO-CHAIR IVAN again welcomed any comments or questions. Number 409 REPRESENTATIVE VEZEY posed a question concerning unorganized boroughs. Number 416 MR. MENZIES stated that it was not all on a rectangular system. Number 425 REPRESENTATIVE VEZEY inquired about the Department of Transportation and the disregard for existing monuments. Number 431 MR. MENZIES asked that the monumentations be completed. Number 445 REPRESENTATIVE VEZEY expressed his appreciation for having his questions answered. Number 447 CO-CHAIR IVAN wanted to know if there was anyone else wishing to testify on HB 80. Number 454 REPRESENTATIVE MACKIE suggested that the bill be held for two days to be reviewed more extensively and then be brought back before the committee meeting on Thursday. He stated that he did support the bill, but that he felt certain areas needed working on. Number 464 CO-CHAIR IVAN asked Representative James to work on the bill with Tom, the C&RA committee aide and agreed to having the bill brought before the committee again. Number 473 REPRESENTATIVE JAMES stated that she wished the copies of the changes be given to Ron Swanson in Anchorage. Number 478 CO-CHAIR IVAN read the proposed agenda for the next meeting and adjourned the meeting at 2:09 p.m.