Alaska 32nd Legislature (2021-2022) Status: Enacted

HB 411 — An Act relating to municipal economic development; increasing the residential property tax exemption; relating to municipal tax exemptions and deferrals on economic development property; relating to economic development; and relating to a municipal tax exemption for certain farm structures.

Last action — (H) EFFECTIVE DATE(S) OF LAW 10/9/22

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced April 04, 2022. Enacted.

Prognosis

Advancing 54% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Mixed recorded votes

    6 passed, 1 failed in recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

96 added · 58 removed

Plain-language change summary

In the latest version of HB 411, the requirement that boroughs use revenue collected on either an area-wide or non-area-wide basis for economic development agreements has been removed. This change allows boroughs more flexibility in using various tax revenues or other funding sources to support local economic development projects. This is significant because it could enable better collaboration between municipalities, potentially fostering economic growth and development in communities throughout Alaska.

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32-LS1646\A HOUSE BILL NO.
LAWS OF ALASKA Source Chapter No.
411 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-SECOND LEGISLATURE - SECOND SESSION BY THE HOUSE COMMUNITY AND REGIONAL AFFAIRS COMMITTEE Introduced:
SCS CSHB 411(CRA) am S _______ AN ACT Relating to municipal economic development;
4/4/22 Referred:
increasing the residential property tax exemption;
Community and Regional Affairs A BILL FOR AN ACT ENTITLED "An Act relating to municipal tax exemptions and deferrals on economic development property." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
relating to municipal tax exemptions and deferrals on economic development property;
* Section 1.
relating to economic development;
and relating to a municipal tax exemption for certain farm structures.
_______________ BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1 Enrolled HB 411 AN ACT Relating to municipal economic development;
increasing the residential property tax exemption;
relating to municipal tax exemptions and deferrals on economic development property;
relating to economic development;
and relating to a municipal tax exemption for certain farm structures.
_______________ * Section 1.
AS 29.35.110(c) is amended to read:
(c) Notwithstanding (a) of this section, a borough that has entered into an agreement with a city located in the borough to cooperatively or jointly provide for economic development may use borough revenue from taxes or funding from other sources [, WHETHER COLLECTED ON AN AREAWIDE OR NONAREAWIDE BASIS,] to carry out the terms of the agreement.
* Sec.
2.
AS 29.45.050(a) is amended to read:
(a) A municipality may exclude or exempt or partially exempt residential property from taxation by ordinance ratified by the voters at an election.
An exclusion -1- Enrolled HB 411 or exemption authorized by this subsection may be applied with respect to taxes levied in a service area to fund the special services.
An exclusion or exemption authorized by this subsection may not exceed the assessed value of $75,000 [$50,000] for any one residence except that a municipality may, by ordinance, annually adjust the municipality's [THEIR] voter-authorized exemption by the amount calculated by the State Assessor to reflect the increase, if any, in the annual average cost of living, using the United States [U.S.] Department of Labor Consumer Price Index for Urban Alaska [CPI-U FOR ANCHORAGE].
* Sec.
3.
A municipality may [NOT] apply an exemption or deferral under this subsection to taxes levied for special services in a service area that is supervised by a service area board under AS 29.35.460 unless the HB0411a -1- HB 411 New Text Underlined [DELETED TEXT BRACKETED] 32-LS1646\A board objects to the exemption or deferral by resolution adopted not later than 30 days after the effective date of the municipal ordinance enacting the tax exemption or deferral.
A municipality may [NOT] apply an exemption or deferral under this subsection to taxes levied for special services in a service area that is supervised by an elected service area [A] board under AS 29.35.460 unless the elected service area board objects to the exemption or deferral by resolution adopted not later than 60 days after the effective date of the municipal ordinance enacting the tax exemption or deferral.
In this subsection, "economic development property" means real or personal property, including developed property conveyed under 43 U.S.C.
[IN THIS SUBSECTION, "ECONOMIC DEVELOPMENT PROPERTY" MEANS REAL OR PERSONAL PROPERTY, INCLUDING DEVELOPED PROPERTY CONVEYED UNDER 43 U.S.C.
1601 et seq.
1601 ET SEQ.
(Alaska Native Claims Settlement Act), (1) to which one or more of the following apply:
(ALASKA NATIVE CLAIMS SETTLEMENT ACT), Enrolled HB 411 -2- (1) TO WHICH ONE OR MORE OF THE FOLLOWING APPLY:
(A) the property has not previously been taxed as real or personal property by the municipality;
(A) THE PROPERTY HAS NOT PREVIOUSLY BEEN TAXED AS REAL OR PERSONAL PROPERTY BY THE MUNICIPALITY;
(B) the property is used in a trade or business in a way that (i) creates employment in the municipality;
(B) THE PROPERTY IS USED IN A TRADE OR BUSINESS IN A WAY THAT (i) CREATES EMPLOYMENT IN THE MUNICIPALITY;
(ii) generates sales outside of the municipality of goods or services produced in the municipality;
(ii) GENERATES SALES OUTSIDE OF THE MUNICIPALITY OF GOODS OR SERVICES PRODUCED IN THE MUNICIPALITY;
or (iii) materially reduces the importation of goods or services from outside the municipality;
OR (iii) MATERIALLY REDUCES THE IMPORTATION OF GOODS OR SERVICES FROM OUTSIDE THE MUNICIPALITY;
(C) an exemption or deferral on the property enables a significant capital investment in physical infrastructure that (i) expands the tax base of the municipality;
(C) AN EXEMPTION OR DEFERRAL ON THE PROPERTY ENABLES A SIGNIFICANT CAPITAL INVESTMENT IN PHYSICAL INFRASTRUCTURE THAT (i) EXPANDS THE TAX BASE OF THE MUNICIPALITY;
and (ii) will generate property tax revenue after the exemption expires;
AND (ii) WILL GENERATE PROPERTY TAX REVENUE AFTER THE EXEMPTION EXPIRES;
or (2) that has not been used in the same trade or business in another municipality for at least six months before the application for deferral or exemption is filed;
OR (2) THAT HAS NOT BEEN USED IN THE SAME TRADE OR BUSINESS IN ANOTHER MUNICIPALITY FOR AT LEAST SIX MONTHS BEFORE THE APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED;
this paragraph does not apply if the property was used in the same trade or business in an area that has been annexed to the municipality within six months before the application for deferral or exemption is filed;
THIS PARAGRAPH DOES NOT APPLY IF THE PROPERTY WAS USED IN THE SAME TRADE OR BUSINESS IN AN AREA THAT HAS BEEN ANNEXED TO THE MUNICIPALITY WITHIN SIX MONTHS BEFORE THE APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED;
this paragraph does not apply to inventories.
THIS PARAGRAPH DOES NOT APPLY TO INVENTORIES.] * Sec.
HB 411 -2- HB0411a New Text Underlined [DELETED TEXT BRACKETED]
4.
AS 29.71.800 is amended by adding a new paragraph to read:
(26) "economic development" means an action intended to result in an outcome that causes an increase in, or avoids a decrease of, economic activity, gross -3- Enrolled HB 411 domestic product, or the tax base.
* Sec.
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5.
Section 2, ch.
66, SLA 2013, is repealed.
Enrolled HB 411 -4-
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Action History

  1. (H) EFFECTIVE DATE(S) OF LAW 10/9/22

  2. (H) LAW W/O GOV SIGNATURE 7/11 CHAPTER 37 SLA 22

  3. (H) 12:10 P.M. 6/17/22 Transmitted to Governor

  4. (H) TITLE CHANGE: SCR 17

  5. (H) CONCUR AM OF (S) Y34 N2 E1 A3

  6. (H) CONCUR TAKEN UP UC

  7. (H) CONCUR READ AND HELD

  8. (S) VERSION: SCS CSHB 411(CRA) AM S

  9. (S) TRANSMITTED TO (H) AS AMENDED

  10. (S) PASSED Y16 N4

  11. (S) AUTOMATICALLY IN THIRD READING

  12. (S) ...CHANGES TITLE OF LEGISLATION

  13. (S) AM NO 2 ADOPTED Y18 N2

  14. (S) AM NO 1 OFFERED AND WITHDRAWN

  15. (S) RETURN TO SECOND FOR AMDS UC

  16. (S) READ THE THIRD TIME SCS CSHB 411(CRA)

  17. (S) ADVANCED TO THIRD READING 5/16 CAL

  18. (S) CRA SCS ADOPTED UC

  19. (S) READ THE SECOND TIME

  20. (S) RULES TO CALENDAR 5/15/2022

  21. (S) FN1: ZERO(CED)

  22. (S) DP: HUGHES, GRAY-JACKSON, MYERS

  23. (S) TITLE CHANGE: SCR 17

  24. (S) CRA RPT SCS(CRA) 3DP NEW TITLE

  25. (S) Minutes (SCRA)

  26. (S) Moved SCS CSHB 411(CRA) Out of Committee **Streamed live on AKL.tv**

  27. (S) COMMUNITY & REGIONAL AFFAIRS at 03:30 PM BELTZ 105 (TSBldg)

  28. (S) CRA

  29. (S) READ THE FIRST TIME - REFERRALS

  30. (H) VERSION: CSHB 411(CRA)

  31. (H) TRANSMITTED TO (S)

  32. (H) PASSED Y37 N1 E1 A1

  33. (H) READ THE THIRD TIME CSHB 411(CRA)

  34. (H) ADVANCED TO THIRD READING 4/29 CALENDAR

  35. (H) SUSTAINED RULING OF CHAIR Y37 N2 E1

  36. (H) AM NO 2 OFFERED AND RULED OUT OF ORDER

  37. (H) AM NO 1 FAILED Y3 N36 E1

  38. (H) CRA CS ADOPTED Y34 N4 E1 A1

  39. (H) READ THE SECOND TIME

  40. (H) RULES TO CALENDAR 4/27/2022

  41. (H) L&C REFERRAL REMOVED

  42. (H) FN1: ZERO(CED)

  43. (H) NR: MCCARTY, PRAX

  44. (H) DP: MCCABE, HANNAN, SCHRAGE

  45. (H) CRA RPT CS(CRA) NEW TITLE 3DP 2NR

  46. (H) Moved CSHB 411(CRA) Out of Committee

  47. (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  48. (H) Minutes (HCRA)

  49. (H) Heard & Held

  50. (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  51. (H) Minutes (HCRA)

  52. (H) Heard & Held

  53. (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  54. (H) -- Invited & Public Testimony -- -- MEETING CANCELED --

  55. (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  56. (H) -- MEETING CANCELED --

  57. (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  58. (H) CRA, L&C

  59. (H) READ THE FIRST TIME - REFERRALS

Sponsors

  • HOUSE COMMUNITY & REGIONAL AFFAIRS · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 64 not signed on

Sponsors (1)

  • HOUSE COMMUNITY & REGIONAL AFFAIRS

Co-sponsors (0)

None.

Not signed on (64)

64 members have not signed on to this bill.

Show all 64 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Subjects

taxation housing agriculture
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Frequently asked questions

Who sponsors HB 411?
HB 411 is sponsored by HOUSE COMMUNITY & REGIONAL AFFAIRS.
What is the current status of HB 411?
This bill has been enacted into law. Introduced April 04, 2022. Enacted.
Where can I track HB 411?
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