SCS CSHB 370(CRA): "An Act relating to military facility zones; and relating to a municipal tax exemption or deferral for economic development property."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 370(CRA) 01 "An Act relating to military facility zones; and relating to a municipal tax exemption or 02 deferral for economic development property." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 26.30.020(c) is amended to read: 05 (c) The adjutant general shall consider the following factors before 06 designating an area as a military facility zone: 07 (1) whether the proposed military facility zone designation is 08 consistent with the comprehensive plan of the municipality or local zoning 09 ordinances; 10 (2) whether it is feasible to develop sites within the proposed zone for 11 purposes of industrial or economic development, residential use, and workforce 12 training or education beneficial to the facility; 13 (3) whether the municipality has targeted the area for revitalization in a 14 plan or ordinance;
01 (4) the relationship between the area and a military facility subject to 02 realignment or closure under 10 U.S.C. 2687, as amended, or a successor statute or the 03 effect of the realignment or closure on the area; 04 (5) the availability, cost, and condition of existing business and 05 educational facilities to support the military facility or facility of a civilian agency; 06 (6) the difference between the median annual income of residents of 07 the area and the median annual income of residents of the state and region, and the 08 number of residents who receive public assistance; 09 (7) the number of residents of the area who receive unemployment, 10 and the ability of the municipality to improve social and economic conditions of the 11 area; 12 (8) the need for financing for small businesses that would improve 13 social and economic conditions in the area; 14 (9) any plans or financial commitments of municipalities to improve 15 the area; 16 (10) any plans or financial commitments of private entities to improve 17 the area; 18 (11) the municipality's participation in economic development 19 activities, including proposals for public or private development; 20 (12) support from community or business organizations in the area; 21 (13) the availability of workforce readiness programs, including 22 workforce recruiting and training support or educational research and curriculum 23 support in the area; 24 (14) the availability or plans for the creation of workforce housing 25 options for residents of the area; and 26 (15) the fiscal effect on the state if the area were to be designated a 27 military facility zone. 28 * Sec. 2. AS 29.45.050(m) is amended to read: 29 (m) A municipality may by ordinance partially or totally exempt all or some 30 types of economic development property from taxation for up to 30 [FIVE] years. 31 [THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE EXEMPTION
01 UNDER CONDITIONS ESTABLISHED IN THE ORDINANCE. HOWEVER, 02 UNDER A RENEWAL, A MUNICIPALITY THAT IS A SCHOOL DISTRICT 03 MAY ONLY EXEMPT ALL OR A PORTION OF THE AMOUNT OF TAXES 04 THAT EXCEEDS THE AMOUNT LEVIED ON OTHER PROPERTY FOR THE 05 SCHOOL DISTRICT.] A municipality may by ordinance permit deferral of payment 06 of taxes on all or some types of economic development property for up to 30 [FIVE] 07 years. An exemption or deferral authorized by this subsection may not be applied 08 to reduce the taxes levied in a service area to fund the special services unless the 09 service area board or, if the service area does not have a service area board with 10 at least two sitting members, the assembly, evaluates the potential effects on the 11 special services of the service area and, by a majority vote, applies the exemption 12 or deferral. [THE MUNICIPALITY MAY PROVIDE FOR RENEWAL OF THE 13 DEFERRAL UNDER CONDITIONS ESTABLISHED IN THE ORDINANCE.] A 14 municipality may adopt an ordinance under this subsection only if, before it is 15 adopted, copies of the proposed ordinance made available at a public hearing on it 16 contain written notice that the ordinance, if adopted, may be repealed by the voters 17 through referendum. An ordinance adopted under this subsection must include specific 18 eligibility requirements and require a written application for each exemption or 19 deferral. In this subsection, "economic development property" means real or personal 20 property, including developed property conveyed under 43 U.S.C. 1601 et seq. 21 (Alaska Native Claims Settlement Act), [THAT] 22 (1) that has not been used in the same trade or business in another 23 municipality for at least six months before the application for deferral or 24 exemption is filed; this paragraph does not apply if the property was used in the 25 same trade or business in an area that has been annexed to the municipality 26 within six months before the application for deferral or exemption is filed; this 27 paragraph does not apply to inventories; or 28 (2) to which one or more of the following applies: 29 (A) the property has not previously been taxed as real or 30 personal property by the municipality; 31 (B) the property [(2)] is used in a trade or business in a way
01 that 02 (i) [(A)] creates employment in the municipality; 03 (ii) [(B)] generates sales outside of the municipality of 04 goods or services produced in the municipality; or 05 (iii) [(C)] materially reduces the importation of goods or 06 services from outside the municipality; 07 (C) an exemption or deferral on the property enables a 08 significant capital investment in physical infrastructure that 09 (i) expands the tax base of the municipality; and 10 (ii) will generate property tax revenue after the 11 exemption expires [AND 12 (3) HAS NOT BEEN USED IN THE SAME TRADE OR BUSINESS 13 IN ANOTHER MUNICIPALITY FOR AT LEAST SIX MONTHS BEFORE THE 14 APPLICATION FOR DEFERRAL OR EXEMPTION IS FILED; THIS 15 PARAGRAPH DOES NOT APPLY IF THE PROPERTY WAS USED IN THE 16 SAME TRADE OR BUSINESS IN AN AREA THAT HAS BEEN ANNEXED TO 17 THE MUNICIPALITY WITHIN SIX MONTHS BEFORE THE APPLICATION 18 FOR DEFERRAL OR EXEMPTION IS FILED; THIS PARAGRAPH DOES NOT 19 APPLY TO INVENTORIES].