SCS CSHB 272(FIN): "An Act relating to municipal taxation of motor vehicles; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 272(FIN)                                                                            
01 "An Act relating to municipal taxation of motor vehicles; and providing for an                                          
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 28.10.431(f) is amended to read:                                                                    
05  (f)  Money received by an organized borough under this section shall be                                               
06 allocated by the borough by ordinance for city, area outside city, and service area                                     
07 purposes within the borough.  If a municipality by ordinance increases the                                             
08 scheduled amount of tax described under (b) of this section, the amount of                                              
09 additional money received under this section by the municipality shall be used to                                       
10 reduce property taxes levied by the municipality at a uniform rate within its                                           
11 entire area.                                                                                                           
12    * Sec. 2.  AS 28.10.431 is amended by adding a new subsection to read:                                               
13  (i)  A municipality that imposes a motor vehicle registration tax as described                                        
14 under (a) of this section may also increase or decrease the scheduled amount of tax                                     
01 described under (b) of this section by passage of an appropriate ordinance.  A                                          
02 municipality that chooses to change the tax imposed under (b) of this section shall file                                
03 a written notice of the change with the department by January 1 of the year preceding                                   
04 the year in which the change in tax is to take effect.  A municipality may not change                                   
05 the amount of the tax imposed under this section more than once every two years.                                        
06 The department may charge a municipality a one-time fee to cover the cost to the                                        
07 department of implementing a change under this subsection.                                                              
08     * Sec. 3.   This Act takes effect July 1, 1996.