Alaska 33rd Legislature (2023-2024) Status: Enacted Bipartisan · 4 R · 2 D cosponsors

SB 179 — An Act relating to municipal property tax; relating to assessment of property, boards of equalization, and certification of assessors; prohibiting municipalities from levying a tax on the transfer of real property; prohibiting the state from levying a tax on the transfer of real property; relating to municipal taxation of mobile telecommunications services; and providing for an effective date.

Last action — (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

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

This bill has been enacted into law. Introduced January 16, 2024. Enacted.

Signed by Governor Mike Dunleavy (Republican) on October 09, 2024.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 82% · high confidence

  • Enacted

    Current position in the legislative process.

  • 6 sponsors

    1 primary, 5 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (4 R · 2 D) — cross-party backing.

  • Mixed recorded votes

    8 passed, 5 failed in recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

248 added · 47 removed

Plain-language change summary

The latest version of Bill SB 179 includes added provisions that specifically prohibit municipalities and the state from levying taxes on the transfer of real property, which was not clearly stated in the earlier draft. This change is significant because it clarifies that both local and state governments cannot impose taxes when property changes hands, potentially making real estate transactions more affordable for buyers. Additionally, the bill maintains regulations regarding the taxation of mobile telecommunications services, ensuring that local governments can still tax those services.

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Latest
33-LS1093\A SENATE BILL NO.
LAWS OF ALASKA Source Chapter No.
179 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY SENATORS BJORKMAN, Gray-Jackson Introduced:
HCS CSSB 179(RLS) _______ AN ACT Relating to municipal property tax;
1/16/24 Referred:
relating to assessment of property, boards of equalization, and certification of assessors;
Community and Regional Affairs A BILL FOR AN ACT ENTITLED "An Act prohibiting municipalities from levying a tax on the transfer of real property;
prohibiting municipalities from levying a tax on the transfer of real property;
and relating to municipal taxation of mobile telecommunications services." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
relating to municipal taxation of mobile telecommunications services;
* Section 1.
and providing for an effective date.
_______________ BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1 Enrolled SB 179 AN ACT Relating to municipal property tax;
relating to assessment of property, boards of equalization, and certification of assessors;
prohibiting municipalities from levying a tax on the transfer of real property;
prohibiting the state from levying a tax on the transfer of real property;
relating to municipal taxation of mobile telecommunications services;
and providing for an effective date.
_______________ * Section 1.
AS 29.45.050(m) is amended to read:
(m) A municipality may by ordinance partially or totally exempt all or some types of economic development property from taxation for a designated period.
[EXCEPT AS OTHERWISE PROVIDED BY AN ORDINANCE ENACTED BY -1- Enrolled SB 179 THE MUNICIPALITY BEFORE JANUARY 1, 2017, A MUNICIPALITY THAT IS A SCHOOL DISTRICT MAY ONLY EXEMPT ALL OR A PORTION OF THE AMOUNT OF TAXES THAT EXCEEDS THE AMOUNT LEVIED ON OTHER PROPERTY FOR THE SCHOOL DISTRICT'S REQUIRED LOCAL CONTRIBUTION UNDER AS 14.17.410(b)(2).] A municipality may by ordinance permit deferral of payment of taxes on all or some types of economic development property for a designated period.
A municipality may 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 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.
A municipality may adopt an ordinance under this subsection only if, before it is adopted, copies of the proposed ordinance made available at a public hearing on it contain written notice that the ordinance, if adopted, may be repealed by the voters through referendum.
An ordinance adopted under this subsection must include specific eligibility requirements and require a written application for each exemption or deferral.
* Sec.
4.
AS 29.45.050(t) is amended to read:
(t) A municipality may by ordinance [APPROVED BY THE VOTERS] partially or totally exempt from taxation farm land and farm structures [A FARM STRUCTURE] used exclusively for farming activity, or purposes directly related to farming activity, if the farm land or farm structure meets the criteria set out in this subsection.
The farm land or farm structure must be [IS] owned or leased by a person that is actively engaged in farming, and the owner or lessee must sell at least $2,500 of agricultural products produced from the land during the tax year and file an Internal Revenue Service Schedule F (Form 1040) with the United States Internal Revenue Service.
The farm land or farm [THAT DERIVES AT LEAST 10 PERCENT OF THE PERSON'S YEARLY GROSS INCOME FROM FARMING ACTIVITY, AND THE] structure must be [IS] used for (1) the growing, storage, or processing of grains, fruits, vegetables, aquatic farm products as defined in AS 16.40.199, or other crops specified by Enrolled SB 179 -2- ordinance [INTENDED FOR HUMAN CONSUMPTION] and produced by the owner's or lessee's farming activity;
(2) the storage or processing of (A) feed for livestock;
(B) livestock, poultry, or other animals used in the owner's or lessee's farming activity;
(C) [(B)] milk or milk products produced by the owner's or lessee's farming activity;
or (3) sheltering, stabling, or milking the owner's or lessee's dairy animals, poultry, or livestock.
* Sec.
5.
AS 29.45.050(y) is amended to read:
(y) In this section, "farming activity" means raising and harvesting crops;
feeding, breeding, and managing livestock;
dairying;
propagating, farming, or cultivating an aquatic farm product as defined in AS 16.40.199;
or any combination of those activities.
* Sec.
6.
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AS 29.45.050 is amended by adding a new subsection to read:
(z) In the event that an owner or lessee of farm use land does not sell $2,500 of agricultural products produced from the land during a tax year because of circumstances beyond the control of the owner or lessee, the owner may secure the exemption under (t) of this section if the farm use land qualified for the exemption under (t) of this section for the three preceding tax years.
In this subsection, "circumstances beyond the control of the owner or lessee" includes crop failure or physical injury that prevents the owner or lessee from conducting farming activity.
* Sec.
7.
AS 29.45.060(a) is amended to read:
(a) Farm use land, and structures on farm use land that are used for farm operations, included in a farm unit and not dedicated or being used for nonfarm purposes shall be assessed on the basis of full and true value for farm use and may not be assessed as if subdivided or used for some other nonfarm purpose.
The assessor shall maintain records valuing the land for both full and true value and farm use value.
If the land is sold, leased, or otherwise disposed of for uses incompatible with farm use or converted to a use incompatible with farm use by the owner, the owner is liable -3- Enrolled SB 179 to pay an amount equal to the additional tax at the current mill levy together with eight percent interest for the preceding seven years, as though the land had not been assessed for farm use purposes.
Payment by the owner shall be made to the state to the extent of its reimbursement for revenue loss under (d) of this section for the preceding seven years.
The balance of the payment shall be made to the municipality.
* Sec.
8.
AS 29.45.060(b) is amended to read:
(b) An owner of farm use land shall, to secure the assessment under this section, apply to the assessor on or before May 15 of each year in which the assessment is desired.
The application shall be made on [UPON] forms prescribed by the state assessor for the use of the local assessor, and must include information that may reasonably be required to determine the entitlement of the applicant.
If the land is leased for farm use purposes, the applicant shall furnish to the assessor a copy of the lease bearing the signatures of both lessee and lessor along with the completed application.
The applicant shall furnish the assessor a copy of the lease covering the period for which the exemption is requested.
This subsection does not apply to a person with an interest in land that is classified by the state for agricultural use or that is restricted by the state for agricultural purposes.
* Sec.
9.
AS 29.45.060(c) is amended to read:
(c) In the event that an owner or lessee of farm use land does not sell $2,500 of agricultural products produced from the land during a tax year because of circumstances beyond the control of the owner or lessee, the owner may secure the assessment under this section if the farm use land qualified for the assessment under this section for the three preceding tax years.
In this subsection, "circumstances beyond the control of the owner or lessee" includes [OF A] crop failure or physical injury that prevents the owner or lessee from conducting farming activity [BY AN ACT OF GOD THE PREVIOUS YEAR, THE OWNER OR LESSEE MAY SUBMIT AN AFFIDAVIT AFFIRMING THAT 10 PERCENT OF GROSS INCOME FOR THE PAST THREE YEARS WAS FROM FARMING].
* Sec.
10.
AS 29.45.060(f) is amended to read:
(f) This section does not apply to land for which the owner has granted, and Enrolled SB 179 -4- has outstanding, a lease or option to buy the surface rights.
A property owner wishing to file for farm use classification having no history of farm-related income may submit a declaration of intent at the time of filing the application with the assessor setting out the intended use of the land and certifying that the property owner intends to file an Internal Revenue Service Schedule F (Form 1040) with the United States Internal Revenue Service for the current tax year [THE ANTICIPATED PERCENTAGE OF INCOME].
An applicant using this procedure shall file with the assessor on or before April 15 [FEBRUARY 1] of the following year a copy of the Schedule F (Form 1040) the applicant files with the Internal Revenue Service [NOTARIZED STATEMENT OF THE PERCENTAGE OF GROSS INCOME ATTRIBUTABLE TO THE LAND].
Failure to make a [THE] filing required in this subsection forfeits the exemption.
* Sec.
11.
AS 29.45.060(g) is amended to read:
(g) In this section, (1) "farm use" means the use of land for the production of crops, fruits, or other agricultural products for human or animal consumption or for the sustenance or grazing of livestock if the owner or lessee sells at least $2,500 of agricultural products produced from the land during the tax year and files an Internal Revenue Service Schedule F (Form 1040) with the United States Internal Revenue Service;
(2) "livestock" includes cattle, hogs, sheep, goats, chickens, turkeys, pigeons, and other poultry raised to provide meat or other products for human consumption [PROFIT FOR RAISING AND HARVESTING CROPS, FOR THE FEEDING, BREEDING, AND MANAGEMENT OF LIVESTOCK, FOR DAIRYING, OR ANOTHER AGRICULTURAL USE, OR ANY COMBINATION OF THESE.
TO BE FARM USE LAND, THE OWNER OR LESSEE MUST BE ACTIVELY ENGAGED IN FARMING THE LAND, AND DERIVE AT LEAST 10 PERCENT OF YEARLY GROSS INCOME FROM THE LAND].
* Sec.
12.
AS 29.45.110(a) is amended to read:
(a) The assessor shall assess property at its full and true value as of January 1 of the assessment year, except as provided in this section, AS 29.45.060, and -5- Enrolled SB 179 29.45.230.
The full and true value is the estimated price that the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer both conversant with the property and with prevailing general price levels.
The assessor shall determine the full and true value as provided in standards adopted by the department under (e) of this section or another set of standards provided by ordinance.
* Sec.
13.
AS 29.45.110 is amended by adding a new subsection to read:
(e) The department shall adopt standards for assessing the full and true value of property under (a) of this section that are not inconsistent with standards adopted by the International Association of Assessing Officers and update the standards when necessary.
* Sec.
14.
AS 29.45 is amended by adding a new section to read:
Sec.
29.45.115.
Assessor certification.
A municipality may not employ an assessor, including a private contractor, unless the assessor has a level 3 certification from the Alaska Association of Assessing Officers or works under the supervision of an individual with a level 3 certification from the Alaska Association of Assessing Officers.
* Sec.
15.
AS 29.45.180(a) is amended to read:
(a) A person receiving an assessment notice shall advise the assessor of errors or omissions in the assessment of the person's property.
If requested by the person, the assessor or a person designated by the assessor shall meet with the person and answer reasonable questions relating to the methods used to assess the person's property.
The meeting required under this subsection may be virtual or telephonic.
The assessor may correct errors or omissions in the roll before the board of equalization hearing.
* Sec.
16.
AS 29.45.200(a) is amended to read:
(a) The governing body shall appoint one or more boards [SITS AS A BOARD] of equalization for the purpose of hearing an appeal from a determination of the assessor [, OR IT MAY DELEGATE THIS AUTHORITY TO ONE OR MORE BOARDS APPOINTED BY IT].
An appointed board shall [MAY] be composed of not less than three persons, who shall be members of the governing body, municipal Enrolled SB 179 -6- residents, or a combination of members of the governing body and residents.
The governing body shall by ordinance establish the qualifications for membership.
The governing body may by ordinance appoint itself to sit as a board of equalization.
* Sec.
17.
AS 29.45.210(b) is amended to read:
(b) The appellant bears the burden of proof.
The only grounds for adjustment of assessment are proof of unequal, excessive, improper, or under valuation based on facts that are stated in a valid written appeal or proven at the appeal hearing.
The [IF A VALUATION IS FOUND TO BE TOO LOW, THE] board of equalization may not raise the assessment in the current year unless requested to do so by the appellant.
If the appellant provides a long form fee appraisal to support the appellant's valuation and the board of equalization does not find in favor of the appellant, the board shall make specific findings on the record to support its decision.
* Sec.
18.
Notwithstanding other statutes, exemptions may be granted SB0179A -1- SB 179 New Text Underlined [DELETED TEXT BRACKETED] 33-LS1093\A by ordinance.
Notwithstanding other statutes, exemptions may be granted by ordinance.
4.
19.
In this subsection, "transfer" has the meaning given in AS 34.70.200.
5.
20.
6.
21.
(h) A city may not levy or collect a sales or use tax on theratnsfer of real property.
(h) A city may not levy or collect a sales or use tax on theratnsfer of real -7- Enrolled SB 179 property.
In this subsection, "transfer" has the meaning given in AS 34.70.200.
7.
22.
In this section, "transfer" has the meaning given in AS 34.70.200.
8.
23.
SB 179 -2- SB0179A New Text Underlined [DELETED TEXT BRACKETED]
* Sec.
24.
The uncodified law of the State of Alaska is amended by adding a new section to read:
APPLICABILITY.
AS 29.45.650(l), enacted by sec.
19 of this Act, and AS 29.45.700(h), enacted by sec.
21 of this Act, do not apply to an ordinance that establishes a sales or use tax on the transfer of real property adopted by a municipality before the effective date of secs.
19 and 21 of this Act.
* Sec.
25.
The uncodified law of the State of Alaska is amended by adding a new section to read:
TRANSITION:
REGULATIONS.
The Department of Commerce, Community, and Economic Development may adopt regulations necessary to implement the changes made by secs.
12 - 17 of this Act.
The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the law implemented by the regulation.
* Sec.
26.
Sections 12, 13, and 15 - 17 of this Act take effect January 1, 2025.
* Sec.
27.
Section 14 of this Act takes effect January 1, 2026.
* Sec.
28.
Sections 3 - 11 and 25 of this Act take effect immediately under AS 01.10.070(c).
Enrolled SB 179 -8-
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Action History

  1. (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

  2. (S) Signed into law 8/13 CHAPTER 28 SLA 24

  3. (S) 10:45 A.M. 7/22/24 Transmitted to Governor

  4. (S) MANIFEST ERROR(S)

  5. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

  6. (S) CONCUR AM OF (H) Y20 N-

  7. (S) CONCUR MESSAGE READ AND TAKEN UP

  8. (H) VERSION: HCS CSSB 179(RLS)

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

  10. (H) CROSS SPONSOR(S): SADDLER, JOSEPHSON

  11. (H) EFFECTIVE DATE(S) SAME AS PASSAGE

  12. (H) PASSED Y39 N1

  13. (H) READ THE THIRD TIME HCS CSSB 179(RLS)

  14. (H) ADVANCED TO THIRD READING SAME DAY Y39 N1

  15. (H) AM NO 1 FAILED Y18 N22

  16. (H) CALL FOR THE QUESTION WITHDRAWN

  17. (H) RESCIND ACTION (ADOPTING) AM 1 PASSED Y22 N18

  18. (H) MOTION TO ADVANCE TO THIRD SAME DAY WITHDRAWN Y24 N16

  19. (H) AM NOS 5 AND 6 NOT OFFERED

  20. (H) AM NO 4 WITHDRAWN

  21. (H) BEFORE HOUSE IN SECOND READING

  22. (H) AM 1 TO AM 4 FAILED Y17 N22 A1

  23. (H) AM NO 4 OFFERED AND PENDING

  24. (H) AM NO 3 FAILED Y1 N38 A1

  25. (H) AM NO 2 FAILED Y19 N20 A1

  26. (H) AM NO 1 ADOPTED Y24 N15 A1

  27. (H) AM 1 TO AM 1 FAILED Y16 N22 A2

  28. (H) AM NO 1 OFFERED

  29. (H) TITLE CHANGE: HCR 24

  30. (H) RLS HCS ADOPTED Y37 N1 A2

  31. (H) READ THE SECOND TIME

  32. (H) MOVED TO BOTTOM OF CALENDAR

  33. (H) RULES TO CALENDAR 5/14/2024

  34. (H) FN3: ZERO(CED)

  35. (H) FN1: ZERO(REV)

  36. (H) DP: FIELDS, SUMNER, SHAW, SCHRAGE, ALLARD, TILTON, C.JOHNSON

  37. (H) TITLE CHANGE: HCR 24

  38. (H) RLS RPT HCS(RLS) NEW TITLE 7DP

  39. (H) Minutes (HRLS)

  40. (H) Moved HCS CSSB 179(RLS) Out of Committee -- Delayed to 12:30 PM --

  41. (H) RULES at 09:00 AM GRUENBERG 120

  42. (H) CROSS SPONSOR(S): VANCE

  43. (H) FN2: ZERO(CED)

  44. (H) FN1: ZERO(REV)

  45. (H) NR: MEARS, HIMSCHOOT, MCKAY, BAKER, MCCORMICK

  46. (H) DNP: MCCABE

  47. (H) DP: RUFFRIDGE

  48. (H) CRA RPT HCS(CRA) 1DP 1DNP 5NR

  49. (H) Minutes (HCRA)

  50. (H) Moved HCS CSSB 179(CRA) Out of Committee

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

  52. (H) CROSS SPONSOR(S): COULOMBE

  53. (H) CRA

  54. (H) READ THE FIRST TIME - REFERRALS

  55. (S) VERSION: CSSB 179(CRA)

  56. (S) TRANSMITTED TO (H)

  57. (S) PASSED Y16 N3 E1

  58. (S) READ THE THIRD TIME CSSB 179(CRA)

  59. (S) ADVANCED TO THIRD READING 4/3 CAL

  60. (S) CRA CS ADOPTED UC

  61. (S) READ THE SECOND TIME

  62. (S) RULES TO CALENDAR 4/2/2024

  63. (S) FN1: ZERO(REV)

  64. (S) DP: DUNBAR, GRAY-JACKSON, GIESSEL, BJORKMAN

  65. (S) CRA RPT CS 4DP SAME TITLE

  66. (S) Minutes (SCRA)

  67. (S) Moved CSSB 179(CRA) Out of Committee

  68. (S) COMMUNITY & REGIONAL AFFAIRS at 01:30 PM BELTZ 105 (TSBldg)

  69. (S) Minutes (SCRA)

  70. (S) Heard & Held

  71. (S) COMMUNITY & REGIONAL AFFAIRS at 01:30 PM BELTZ 105 (TSBldg)

  72. (S) COSPONSOR(S): GRAY-JACKSON

  73. (S) CRA

  74. (S) READ THE FIRST TIME - REFERRALS

  75. (S) Prefile released 1/12/24

Sponsors

Sponsorship breakdown

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1 sponsors · 5 co-sponsors · 59 not signed on

Sponsors (1)

Co-sponsors (5)

Not signed on (59)

59 members have not signed on to this bill.

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"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.

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Frequently asked questions

Who sponsors SB 179?
SB 179 is sponsored by Andy Josephson (D), Dan Saddler (R), Sarah Vance (R), Julie Coulombe (R), Elvi Gray-Jackson (D), and Jesse Bjorkman (R).
What is the current status of SB 179?
This bill has been enacted into law. Introduced January 16, 2024. Enacted.
Where can I track SB 179?
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