HB 156 — An Act relating to a municipal tax exemption or deferral for economic development property.

1620(d), as 03 amended or under 43 U.S.C.

1636(d), as amended;

or 04 (B) acquired from a municipality in exchange for land that is 05 exempt from taxation under (A) of this paragraph, and is not developed or 06 made subject to a lease;

07 (8) property of a political subdivision, agency, corporation, or other 08 entity of the United States to the extent required by federal law;

except that a private 09 leasehold, contract, or other interest in the property is taxable to the extent of that 10 interest unless the property is located on a military base or installation and the 11 property interest is created under 10 U.S.C.

2871 - 2885 (Military Housing 12 Privatization Initiative), if [PROVIDED THAT] the leaseholder enters into an 13 agreement to make a payment in lieu of taxes to the political subdivision that has 14 taxing authority;

15 (9) natural resources in place including coal, ore bodies, mineral 16 deposits, and other proven and unproven deposits of valuable materials laid down by 17 natural processes, unharvested aquatic plants and animals, and timber;

18 (10) property not exempt under (3) of this subsection that 19 (A) is owned by a private, nonprofit college or university that is 20 accredited by a regional or national accrediting agency recognized by the 21 Council for Higher Education Accreditation or the United States Department 22 of Education, or both;

and 23 (B) was subject to a private leasehold, contract, or other private 24 interest on January 1, 2010, except that a holder of a private leasehold, 25 contract, or other interest in the property shall be taxed to the extent of that 26 interest.

27 * Sec.

2.

0528 (m) A municipality may by ordinance partially or totally exempt all or some 0629 types of economic development property from taxation for a designated periodperiod. [UP 07 TO FIVE YEARS.

THE30 MUNICIPALITYExcept MAYas PROVIDEotherwise FORprovided RENEWALby OFan 08ordinance THEenacted EXEMPTIONby UNDERthe CONDITIONSmunicipality ESTABLISHEDbefore IN31 THEJanuary 091, ORDINANCE.2017 [UP TO FIVE YEARS.

HOWEVER,THE UNDER A RENEWAL, A MUNICIPALITY THAT IS 10 A SCHOOL DISTRICT MAY ONLYPROVIDE EXEMPTFOR ALLRENEWAL OR A PORTION OF THE 11EXEMPTION AMOUNTUNDER OFCONDITIONS TAXESESTABLISHED THAT02 EXCEEDSIN THE AMOUNTORDINANCE. LEVIED ON OTHER 12 PROPERTY FOR THE SCHOOL DISTRICT].

HOWEVER, UNDER A RENEWAL], a municipality that is 03 a school district may byonly ordinanceexempt 13all permitor deferrala portion of paymentthe amount of taxes onthat allexceeds or04 somethe typesamount oflevied economicon developmentother 14 property for athe designatedschool perioddistrict's [UPrequired TOlocal FIVE05 YEARS.contribution under AS 14.17.410(b)(2) [DISTRICT].

THEA MUNICIPALITYmunicipality MAYmay PROVIDEby FOR06 RENEWALordinance OFpermit THEdeferral DEFERRALof UNDERpayment CONDITIONSof 02taxes ESTABLISHEDon INall THEor ORDINANCE].some types of economic 07 development property for a designated period.

A municipality may adoptnot apply an ordinance08 03exemption or deferral under this subsection onlyto if,taxes beforelevied itfor isspecial adopted,services copiesin of09 the proposed ordinance 04 made available at a publicservice hearingarea on it contain written notice that theis ordinance,supervised ifby 05a adopted,board mayunder beAS repealed29.35.460 by[UP theTO votersFIVE through10 referendum.YEARS.

AnTHE ordinanceMUNICIPALITY adoptedMAY 06PROVIDE underFOR thisRENEWAL subsectionOF mustTHE include11 specificDEFERRAL eligibilityUNDER requirementsCONDITIONS andESTABLISHED requireIN aTHE 07ORDINANCE]. written application for each exemption or deferral.

InA 12 municipality may adopt an ordinance under this subsection,subsection "economiconly 08if, developmentbefore property"it meansis real13 oradopted, personalcopies property,of includingthe developedproposed propertyordinance 09made conveyedavailable underat 43a U.S.C.public hearing on it 14 contain written notice that the ordinance, if adopted, may be repealed by the voters 15 through referendum.

An ordinance adopted under this subsection must include specific 16 eligibility requirements and require a written application for each exemption or 17 deferral.

In this subsection, "economic development property" means real or personal 18 property, including developed property conveyed under 43 U.S.C.

19 (Alaska Native Claims Settlement Act) [, 10 THAT] 1120 (1) thatto haswhich notone been used in the same trade or businessmore inof another 12 municipality for at least six months before the applicationfollowing forapplies: deferral or 13 exemption is filed;

this21 paragraph(A) does not apply if the property washas usednot inpreviously thebeen 14taxed sameas tradereal or business22 inpersonal anproperty areaby that has been annexed to the municipalitymunicipality; 15 within six months before the application for deferral or exemption is filed;

this23 16(B) paragraphthe doesproperty not[(2)] applyis toused inventories;in a trade or business in a way 24 that 25 (i) [(A)] creates employment in the municipality;

or26 17(ii) (2)[(B)] togenerates whichsales oneoutside orof morethe municipality of the27 followinggoods applies:or services produced in the municipality;

18or (A)28 the(iii) property[(C)] hasmaterially notreduces previouslythe beenimportation taxedof asgoods real or 1929 personalservices propertyfrom byoutside the municipality;

2030 (B)(C) thean propertyexemption [(2)]or isdeferral usedon inthe property enables a trade31 orsignificant businesscapital investment in aphysical wayinfrastructure 21 that 22 (i) [(A)]expands createsthe employmenttax inbase of the municipality;

23and 02 (ii) [(B)]will generatesgenerate salesproperty outsidetax ofrevenue after the municipality03 ofexemption 24expires; goods or services produced in the municipality;

or 2504 (iii)(2) [(C)]that materially[AND reduces(3)] thehas importationnot ofbeen goodsused in the same trade or 26business servicesin from05 outsideanother municipality for at least six months before the municipality;application for deferral or 06 exemption is filed;

27this (C)paragraph andoes exemptionnot orapply deferralif on the property enableswas aused 28in significantthe capitalsame investment07 trade or business in physicalan infrastructurearea that 29has (i)been expandsannexed to the taxmunicipality basewithin ofsix 08 months before the municipality;application for deferral or exemption is filed;

andthis 30paragraph (ii)does will09 generatenot propertyapply taxto revenueinventories. after the 31 exemption expires [AND (3) HAS NOT BEEN USED IN THE SAME TRADE OR BUSINESS 02 IN ANOTHER MUNICIPALITY FOR AT LEAST SIX MONTHS BEFORE THE 03 APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED;

THIS10 04* PARAGRAPHSec. DOES NOT APPLY IF THE PROPERTY WAS USED IN THE 05 SAME TRADE OR BUSINESS IN AN AREA THAT HAS BEEN ANNEXED TO 06 THE MUNICIPALITY WITHIN SIX MONTHS BEFORE THE APPLICATION 07 FOR DEFERRAL OR EXEMPTION IS FILED;

THIS3. PARAGRAPH DOES NOT 08 APPLY TO INVENTORIES].

The uncodified law of the State of Alaska is amended by adding a new section to 11 read:

12 REVISOR'S INSTRUCTION.

When implementing secs.

2 and 3, ch.

10, SLA 2010, 13 and sec.

2, ch.

71, SLA 2010, the legislature does not intend to retain the amendments to 14 AS 29.45.030(a)(1) made by sec.

1 of this Act, but does intend to retain the amendment to 15 AS 29.45.030(a)(8) made by sec.

1 of this Act.

16 * Sec.

4.

Section 8, ch.

10, SLA 2010, as amended by sec.

4, ch.

61, SLA 2012, is amended 17 to read:

18 Sec.

8.

Section 2, ch.

10, SLA 2010, takes effect November 30, 2027 [2017].

19 * Sec.

5.

Section 10, ch.

71, SLA 2010, as amended by sec.

5, ch.

61, SLA 2012, is 20 amended to read:

21 Sec.

10.

Section 2, ch.

71, SLA 2010, takes effect November 30, 2027 [2017].