SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE March 3, 1999 1:44 p.m. MEMBERS PRESENT Senator Tim Kelly, Chair Senator Jerry Mackie, Vice Chair Senator Jerry Ward Senator Randy Phillips Senator Lyman Hoffman MEMBERS ABSENT None COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 22(CRA) "An Act relating to investigations of property by a municipal assessor or the assessor's agent; and providing for an effective date." -MOVED CSHB 22(CRA) OUT OF COMMITTEE SENATE BILL NO. 80 "An Act relating to contracts for the provision of state public assistance to certain recipients in the state; providing for regional public assistance plans and programs in the state; relating to grants for Alaska tribal family assistance programs; and providing for an effective date." -POSTPONED PREVIOUS SENATE COMMITTEE ACTION HB 22 - No previous Senate action. WITNESS REGISTER Kim Metcalfe-Helmar Special Assistant Department of Community and Regional Affairs PO Box 112100 Juneau, AK 99811-2100 POSITION STATEMENT: Supports CSHB 22(CRA) ACTION NARRATIVE TAPE 99-3, SIDE A Number 001 CHAIRMAN TIM KELLY called the Senate Community & Regional Affairs Committee meeting to order at 1:44 p.m. Present were Senators Mackie, Phillips, Hoffman, and Chairman Kelly. The first order of business to come before the committee was CSHB 22(CRA). CSHB 22(CRA) - INVESTIGATIONS BY MUNICIPAL ASSESSOR REPRESENTATIVE SCOTT OGAN, sponsor of the measure, explained he introduced HB 22 in response to a constituent's complaint that the borough tax assessor had entered the constituent's home without permission. After reviewing the existing statute, Representative Ogan determined it is unclear whether a tax assessor must obtain permission to enter private property. CSHB 22(CRA) allows a tax assessor to enter a private building if one of the following three conditions is met: the building is under construction and not yet occupied; the person in actual possession of the structure (a renter or owner) has given permission; or a court has issued an order to compel entry and inspection. CHAIRMAN KELLY asked Representative Ogan if he was aware of any opposition to the bill. REPRESENTATIVE OGAN said he was not aware of any opposition. Furthermore, the state and borough tax assessors say this bill reflects their unwritten policies and the provision allowing tax assessors to enter buildings under construction was included at their request. He added the House voted unanimously to enact the bill. Number 083 SENATOR MACKIE questioned how a court order would be obtained. REPRESENTATIVE OGAN was unsure, but said that provision is in existing statute. He guessed that if a person does not allow the assessor access to the premises, the assessor may overestimate the value of the property, and the taxpayer has the right to appeal. SENATOR MACKIE asked if the purpose of the bill is to compel the assessor to get permission so that a homeowner does not find an assessor wandering around in his/her home. REPRESENTATIVE OGAN remarked the bill is in the best interest of the tax assessor and it is also a civil liberty protection. SENATOR MACKIE asked if the Department of Community and Regional Affairs supports the bill. REPRESENTATIVE OGAN said the Department does not object to CSHB 22(CRA). Number 125 SENATOR PHILLIPS asked if boroughs have an internal policy to deal with homeowners who deny tax assessors permission to enter their homes. REPRESENTATIVE OGAN admitted he denied an assessor entry to his home, and his assessment remained the same as the previous year. CHAIRMAN KELLY thought the person who forced an assessor to get a court order would pay a price in the form of a higher appraisal, therefore people would not abuse the right to force an assessor to get a court order. SENATOR WARD asked if a list of personal property items that can be taxed exists. REPRESENTATIVE OGAN replied the Mat-Su Borough no longer taxes personal property. SENATOR MACKIE clarified some boroughs assess taxes on personal property, some do not. CHAIRMAN KELLY thought such a list would include items like snowmachines and trailers. REPRESENTATIVE OGAN clarified the legislation allows a tax assessor to enter private property to visually inspect structures and personal property, but the assessor cannot enter dwellings without permission. He noted the legislation might need to be expanded to include RVs, workshops, and other structures. CHAIRMAN KELLY said he interprets the legislation to allow an assessor to enter a workshop. REPRESENTATIVE OGAN agreed. KIM METCALFE-HELMAR, Special Assistant to the Commissioner of the Department of Community and Regional Affairs, indicated the state assessor supports this legislation. SENATOR PHILLIPS moved CSHB 22(CRA) out of committee with individual recommendations. There being no objection, the motion carried. CHAIRMAN KELLY adjourned the meeting at 1:55 p.m. and announced the committee will meet next Monday, March 8.