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22nd Legislature(2001-2002)

Bill Text 22nd Legislature


00                       CS FOR SENATE BILL NO. 186(FIN)                                                                   
01 "An Act relating to municipal taxes on oil and gas production and pipeline property;                                    
02 establishing a limit on the general obligation debt that may be authorized and issued by                                
03 home rule and general law municipalities; and providing for an effective date."                                         
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 29.10.200 is amended by adding a new paragraph to read:                                           
06                 (60)  AS 29.47.185 and 29.47.305 (limitations on new or additional                                      
07       general obligation debt).                                                                                         
08    * Sec. 2.  AS 29.45.080 is amended by adding a new subsection to read:                                             
09            (f)  A municipality may not levy and collect taxes on property taxable under                                 
10       AS 43.56 in excess of 1.9 percent of the assessed value of the property.  This                                    
11       subsection only applies to a municipality if the assessed value of all taxable property                           
12       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
13       in the municipality.                                                                                              
14    * Sec. 3.  AS 29.45.080(f) is amended to read:                                                                     
01            (f)  A municipality may not levy and collect taxes on property taxable under                                 
02       AS 43.56 in excess of 1.8 [1.9] percent of the assessed value of the property.  This                          
03       subsection only applies to a municipality if the assessed value of all taxable property                           
04       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
05       in the municipality.                                                                                              
06    * Sec. 4.  AS 29.45.080(f) is amended to read:                                                                     
07            (f)  A municipality may not levy and collect taxes on property taxable under                                 
08       AS 43.56 in excess of 1.7 [1.8] percent of the assessed value of the property.  This                          
09       subsection only applies to a municipality if the assessed value of all taxable property                           
10       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
11       in the municipality.                                                                                              
12    * Sec. 5.  AS 29.45.080(f) is amended to read:                                                                     
13            (f)  A municipality may not levy and collect taxes on property taxable under                                 
14       AS 43.56 in excess of 1.6 [1.7] percent of the assessed value of the property.  This                          
15       subsection only applies to a municipality if the assessed value of all taxable property                           
16       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
17       in the municipality.                                                                                              
18    * Sec. 6.  AS 29.45.080(f) is amended to read:                                                                     
19            (f)  A municipality may not levy and collect taxes on property taxable under                                 
20       AS 43.56 in excess of 1.5 [1.6] percent of the assessed value of the property.  This                          
21       subsection only applies to a municipality if the assessed value of all taxable property                           
22       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
23       in the municipality.                                                                                              
24    * Sec. 7.  AS 29.45.080(f) is amended to read:                                                                     
25            (f)  A municipality may not levy and collect taxes on property taxable under                                 
26       AS 43.56 in excess of 1.4 [1.5] percent of the assessed value of the property.  This                          
27       subsection only applies to a municipality if the assessed value of all taxable property                           
28       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
29       in the municipality.                                                                                              
30    * Sec. 8.  AS 29.45.080(f) is amended to read:                                                                     
31            (f)  A municipality may not levy and collect taxes on property taxable under                                 
01       AS 43.56 in excess of 1.3 [1.4] percent of the assessed value of the property.  This                          
02       subsection only applies to a municipality if the assessed value of all taxable property                           
03       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
04       in the municipality.                                                                                              
05    * Sec. 9.  AS 29.45.080(f) is amended to read:                                                                     
06            (f)  A municipality may not levy and collect taxes on property taxable under                                 
07       AS 43.56 in excess of 1.2 [1.3] percent of the assessed value of the property.  This                          
08       subsection only applies to a municipality if the assessed value of all taxable property                           
09       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
10       in the municipality.                                                                                              
11    * Sec. 10.  AS 29.45.080(f) is amended to read:                                                                    
12            (f)  A municipality may not levy and collect taxes on property taxable under                                 
13       AS 43.56 in excess of 1.1 [1.2] percent of the assessed value of the property.  This                          
14       subsection only applies to a municipality if the assessed value of all taxable property                           
15       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
16       in the municipality.                                                                                              
17    * Sec. 11.  AS 29.45.080(f) is amended to read:                                                                    
18            (f)  A municipality may not levy and collect taxes on property taxable under                                 
19       AS 43.56 in excess of one [1.1] percent of the assessed value of the property.  This                          
20       subsection only applies to a municipality if the assessed value of all taxable property                           
21       in the municipality equals or exceeds $500,000 multiplied by the number of residents                              
22       in the municipality.                                                                                              
23    * Sec. 12.  AS 29.45.090(a) is amended to read:                                                                    
24            (a)  A municipality may not, during a year, levy an ad valorem tax for any                                   
25       purpose in excess of three percent of the assessed value of property in the                                       
26       municipality.  Except for property that is subject to the limitation provided for in                          
27       AS 29.45.080(f), all [ALL] property on which an ad valorem tax is levied shall be                             
28       taxed at the same rate during the year.                                                                           
29    * Sec. 13.  AS 29.45.100 is amended to read:                                                                       
30            Sec. 29.45.100.  Application of [NO] limitations on taxes to pay bonds.                                  
31       Except as provided in (b) of this section, the [THE] limitations provided for in                              
01       AS 29.45.080  - 29.45.090 do not apply to taxes levied or pledged to pay or secure the                            
02       payment of the principal and interest on bonds.  Taxes to pay or secure the payment of                            
03       principal and interest on bonds may be levied without limitation as to rate or amount,                            
04       regardless of whether the bonds are in default or in danger of default.                                           
05    * Sec. 14.  AS 29.45.100 is amended by adding a new subsection to read                                             
06            (b)  The limitation provided for in AS 29.45.080(f) applies to ad valorem taxes                              
07       levied or pledged to pay or secure the payment of the principal or interest on bonds                              
08       issued on or after January 1, 2002, regardless of whether the bonds are in default or in                          
09       danger of being in default.                                                                                       
10    * Sec. 15.  AS 29.47 is amended by adding a new section to read:                                                   
11            Sec. 29.47.185.  Limitations on new or additional general obligation bonds.                              
12       (a)  Except as provided in (b) of this section, a municipality may not incur new or                               
13       additional general obligation bond debt for a purpose described in AS 29.47.180 or for                            
14       another purpose for which a municipality may authorize and issue its general                                      
15       obligation bonds if the proposed new or additional general obligation bond debt, when                             
16       added to the current total general obligation bonded indebtedness of the municipality,                            
17       including the authorized but unsold bonds of the municipality, would cause the total                              
18       general obligation bonded indebtedness of the municipality to exceed $15,000 per                                  
19       capita based on the number of residents of the municipality.                                                      
20            (b)  If a municipality has a total general obligation bonded indebtedness that,                              
21       on July 1, 2001, exceeds $15,000 per capita based on the number of residents of the                               
22       municipality, the municipality may only incur additional general obligation debt                                  
23       during each state fiscal year thereafter in an amount that does not exceed $1,000 per                             
24       capita based on the number of residents of the municipality on the first day of the                               
25       fiscal year during which the indebtedness is incurred.  This subsection no longer                                 
26       applies to a municipality when the total general obligation bonded indebtedness of the                            
27       municipality reaches an amount that does not exceed $15,000 per capita based on the                               
28       number of residents of the municipality.                                                                          
29            (c)  For purposes of (a) and (b) of this section, the population of the                                      
30       municipality shall be determined under AS 29.45.080(e) and 29.45.090(d).                                          
31            (d)  The limitations of (a) and (b) of this section apply to the entire general                              
01       obligation bonded indebtedness of a unified municipality or borough, whether incurred                             
02       as areawide debt, nonareawide debt, or debt involving a service area.                                           
03    * Sec. 16.  AS 29.47 is amended by adding a new section to read:                                                   
04            Sec. 29.47.305.  Limitations on new or additional bonds to refund general                                
05       obligation bonds of the municipality.  (a)  A municipality with a total general                                 
06       obligation bonded indebtedness that exceeds $15,000 per capita based on the number                                
07       of residents of the municipality may only issue general obligation refunding bonds if                             
08       the principal and interest on the refunding bonds must be entirely repaid on or before                            
09       the date the final payment would have been due on the bonds being refunded.                                       
10            (b)  For purposes of (a) of this section, the population of the municipality shall                           
11       be determined under AS 29.45.080(e) and 29.45.090(d).                                                             
12            (c)  The limitation of (a) of this section applies to the entire general obligation                          
13       bonded indebtedness of a unified municipality or borough, whether incurred as                                     
14       areawide debt, nonareawide debt, or debt involving a service area.                                                
15    * Sec. 17.  Sections 1, 15, and 16 of this Act take effect immediately under                                       
16 AS 01.10.070(c).                                                                                                        
17    * Sec. 18.  Sections 2 and 12 - 14 of this Act take effect January 1, 2002.                                        
18    * Sec. 19.  Section 3 of this Act takes effect January 1, 2003.                                                    
19    * Sec. 20.  Section 4 of this Act takes effect January 1, 2004.                                                    
20    * Sec. 21.  Section 5 of this Act takes effect January 1, 2005.                                                    
21    * Sec. 22.  Section 6 of this Act takes effect January 1, 2006.                                                    
22    * Sec. 23.  Section 7 of this Act takes effect January 1, 2007.                                                    
23    * Sec. 24.  Section 8 of this Act takes effect January 1, 2008.                                                    
24    * Sec. 25.  Section 9 of this Act takes effect January 1, 2009.                                                    
25    * Sec. 26.  Section 10 of this Act takes effect January 1, 2010.                                                   
26    * Sec. 27.  Section 11 of this Act takes effect January 1, 2011.                                                   
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