Enrolled HB 146: Relating to the optional exemption from and deferral of payment of municipal taxes on deteriorated property; and relating to a municipal tax exemption for certain subdivided property.
00Enrolled HB 146 01 Relating to the optional exemption from and deferral of payment of municipal taxes on 02 deteriorated property; and relating to a municipal tax exemption for certain subdivided 03 property. 04 _______________ 05 * Section 1. AS 29.45.050(o) is amended to read: 06 (o) A municipality may by ordinance partially or totally exempt all or some 07 types of deteriorated property from taxation for up to 10 years beginning on or any 08 time after the day substantial rehabilitation, renovation, demolition, removal, or 09 replacement of any structure on the property begins. A municipality may by ordinance 10 permit deferral of payment of taxes on all or some types of deteriorated property for 11 up to five years beginning on or any time after the day substantial rehabilitation, 12 renovation, demolition, removal, or replacement of any structure on the property 13 begins. However, if the entire ownership of property for which a deferral has been 14 granted is transferred, all tax payments deferred under this subsection are immediately
01 due, and the deferral ends. Otherwise, deferred tax payments become due as specified 02 by the municipality at the time the deferral is granted. The amount deferred each year 03 is a lien on that property for that year. Only one exemption and only one deferral may 04 be granted to the same property under this subsection, and, if an exemption and a 05 deferral are granted to the same property, both may not be in effect on the same 06 portion of the property during the same time. An ordinance adopted under this 07 subsection must include specific eligibility requirements and require a written 08 application for each exemption or deferral. An application for a deferral must specify 09 when payment of taxes for each year of deferral will become due, together with an 10 explanation of the reasons for each proposed date for consideration by the 11 municipality. In this subsection, "deteriorated property" means real property that, 12 either at the time of application for exemption or deferral or at the time of 13 completion of the project for which an exemption or deferral is requested, is 14 (1) residential property located in a deteriorating or deteriorated 15 area with boundaries that have been determined by the municipality, if the 16 property is owned by an entity that owns at least two residential properties and 17 eight or more residential units among those properties in that deteriorating or 18 deteriorated area; or 19 (2) commercial property not used for residential purposes or that is 20 multi-unit residential property with at least eight residential units, and that meets one 21 of the following requirements: 22 (A) [(1)] within the last five years, has been the subject of an 23 order by a government agency requiring environmental remediation of the 24 property or requiring the property to be vacated, condemned, or demolished by 25 reason of noncompliance with laws, ordinances, or regulations; 26 (B) [(2)] has a structure on it not less than 15 years of age that 27 has not undergone substantial rehabilitation, renovation, demolition, removal, 28 or replacement, subject to any conditions prescribed in the ordinance; or 29 (C) [(3)] is located in a deteriorating or deteriorated area with 30 boundaries that have been determined by the municipality. 31 * Sec. 2. AS 29.45.050 is amended by adding a new subsection to read:
01 (x) A municipality may by ordinance partially or wholly exempt from taxation 02 all or a portion of the increase in assessed value directly attributable to the subdivision 03 of a single parcel of property into three or more parcels and any improvements made 04 to the property necessitated by its subdivision. An ordinance adopted under this 05 subsection may not provide for an exemption that exceeds five years in duration. A 06 municipality may also by ordinance provide that 07 (1) the exemption is terminated when 08 (A) a lot in the subdivision is sold; or 09 (B) a residential or commercial use is established on a lot in the 10 subdivision; or 11 (2) the exemption continues for the unsold lots in the subdivision after 12 (A) a lot in the subdivision is sold; or 13 (B) a residential or commercial use is established on a lot in the 14 subdivision.