SB 201: "An Act relating to the municipal property tax exemption on residences of certain seniors and others; and providing for an effective date."

00 SENATE BILL NO. 201 01 "An Act relating to the municipal property tax exemption on residences of certain 02 seniors and others; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.030(e) is amended to read: 05 (e) The real property owned and occupied as the primary residence and 06 permanent place of abode by a resident who is (1) [RESIDENT] 65 years of age or 07 older; (2) a disabled veteran; or (3) [RESIDENT] at least 60 years old who is the 08 widow or widower of a person who qualified for an exemption under (1) or (2) of this 09 subsection, is exempt from taxation on the first $150,000 of the assessed value of the 10 real property. A municipality may, in case of hardship, provide for exemption beyond 11 the first $150,000 of assessed value in accordance with regulations of the department. 12 The amount of the exemption for a tax year may also be increased under (g) of 13 this section. Only one exemption may be granted for the same property and, if two or 14 more persons are eligible for an exemption for the same property, the parties shall

01 decide between or among themselves who is to receive the benefit of the exemption. 02 Real property may not be exempted under this subsection if the assessor determines, 03 after notice and hearing to the parties, that the property was conveyed to the applicant 04 primarily for the purpose of obtaining the exemption. The determination of the 05 assessor may be appealed under AS 44.62.560 - 44.62.570. 06 * Sec. 2. AS 29.45.030(g) is amended to read: 07 (g) The state shall reimburse a borough or city, as appropriate, for the real 08 property tax revenues lost to it by the operation of (e) of this section. However, 09 reimbursement may be made to a municipality for revenue lost to it only to the extent 10 that the loss exceeds an exemption that was granted by the municipality, or that on 11 proper application by an individual would have been granted under AS 29.45.050(a). 12 If appropriations are not sufficient to fully fund reimbursements under this subsection, 13 the amount available shall be distributed pro rata among eligible municipalities. The 14 amount of the exemption under (e) of this section for a tax year shall be the first 15 $200,000 of the assessed value of the real property if, by September 1 of the 16 previous tax year, the commissioner determines that the amount appropriated is 17 sufficient to fully fund reimbursements to all municipalities at this increased 18 exemption amount. 19 * Sec. 3. AS 29.45.050(i) is amended to read: 20 (i) A municipality may by ordinance approved by the voters exempt from 21 taxation the portion of assessed value [THAT EXCEEDS $150,000] of real property 22 that qualifies for an exemption under AS 29.45.030(e) - (i) but is not exempted 23 under those subsections [OWNED AND OCCUPIED AS A PERMANENT PLACE 24 OF ABODE BY A RESIDENT WHO IS 25 (1) 65 YEARS OF AGE OR OLDER; 26 (2) A DISABLED VETERAN, INCLUDING A PERSON WHO WAS 27 DISABLED IN THE LINE OF DUTY WHILE SERVING IN THE ALASKA 28 TERRITORIAL GUARD; OR 29 (3) AT LEAST 60 YEARS OLD AND A WIDOW OR WIDOWER 30 OF A PERSON WHO QUALIFIED FOR AN EXEMPTION UNDER (1) OR (2) OF 31 THIS SUBSECTION].

01 * Sec. 4. This Act takes effect July 1, 2010.