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HB291 • 2026

MUNICIPAL PROPERTY TAX EXEMPTIONS

An Act relating to municipal exemptions from fees for landfills or dumping areas; and relating to optional municipal property tax exemptions.

Elections Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
REPRESENTATIVES COULOMBE, G.Nelson, Bynum
Last action
2026-04-23
Official status
(H) CRA
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details regarding environmental remediation requirements for commercial properties or boundaries of deteriorating areas.

Municipal Property Tax Exemptions

This act allows municipalities to exempt certain properties from property taxes and landfill fees under specific conditions.

What This Bill Does

  • Allows a municipality to create an ordinance that partially or totally exempts waste disposal fees for the rehabilitation, renovation, demolition, removal, or replacement of deteriorated property.
  • Defines 'deteriorated property' as residential properties in certain areas and commercial properties meeting specific criteria.
  • Permits municipalities to classify real property from taxation by ordinance without requiring voter approval if the exemption does not exceed $75,000 for a single property.
  • Allows municipalities to exempt from taxes the assessed value of real property over $150,000 owned and occupied by residents aged 65 or older.
  • Permits municipalities to classify personal property types and levy flat taxes on them.

Who It Names or Affects

  • Municipalities that own or operate landfills or dumping areas
  • Property owners in deteriorated areas who meet specific criteria for rehabilitation, renovation, demolition, removal, or replacement of structures.
  • Residents aged 65 or older who own and occupy real property valued over $150,000.

Terms To Know

deteriorated property
Real property that is residential in a deteriorating area owned by an entity with at least two properties and eight or more units, or commercial property meeting certain environmental remediation requirements.
flat tax
A fixed amount of tax levied on personal property types classified by the municipality.

Limits and Unknowns

  • The bill does not specify how municipalities will determine boundaries for deteriorating or deteriorated areas.
  • It is unclear what specific environmental remediation requirements apply to commercial properties.

Bill History

  1. 2026-04-23 Text

    (H) Heard & Held

  2. 2026-04-23 Text

    (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  3. 2026-03-24 Text

    (H) Heard & Held

  4. 2026-03-24 Text

    (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  5. 2026-02-25 1739

    (H) COSPONSOR(S): BYNUM

  6. 2026-02-24 Text

    (H) Heard & Held

  7. 2026-02-24 Text

    (H) COMMUNITY & REGIONAL AFFAIRS at 08:00 AM BARNES 124

  8. 2026-02-20 1669

    (H) COSPONSOR(S): G.NELSON

  9. 2026-02-04 1557

    (H) REFERRED TO COMMUNITY & REGIONAL AFFAIRS

  10. 2026-02-04 1557

    (H) CRA, FIN

  11. 2026-02-04 1557

    (H) READ THE FIRST TIME - REFERRALS

Official Summary Text

MUNICIPAL PROPERTY TAX EXEMPTIONS
An Act relating to municipal exemptions from fees for landfills or dumping areas; and relating to optional municipal property tax exemptions.

Current Bill Text

Read the full stored bill text
HB0291a -1- HB 291
New Text Underlined [DELETED TEXT BRACKETED]

34-LS1052\N

HOUSE BILL NO. 291

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY REPRESENTATIVES COULOMBE, G.Nelson, Bynum

Introduced: 2/4/26
Referred: Community and Regional Affairs, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to municipal exemptions from fees for landfills or dumping areas; and 1
relating to optional municipal property tax exemptions." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 29.35.050(d) is amended to read: 4
(d) A municipality that owns or operates a landfill or dumping area for the 5
disposal of waste material may, by ordinance, partially or totally exempt from a fee for 6
the use of the landfill or dumping area the disposal of waste material generated from 7
the substantial rehabilitation, renovation, demolition, removal, or replacement of a 8
structure on deteriorated property. The exemption may apply to some or all types of 9
deteriorated property, as provided in the ordinance. An ordinance adopted under this 10
subsection must include specific eligibility requirements and require a written 11
application for the fee exemption. In this subsection, "deteriorated property" means 12
real property that is 13
(1) residential property located in a deteriorating or deteriorated 14
34-LS1052\N
HB 291 -2- HB0291a
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area with boundaries that have been determined by the municipality, if the 1
property is owned by an entity that owns at least two residential properties and 2
eight or more residential units among those properties in that deteriorating or 3
deteriorated area; or 4
(2) commercial property not used for residential purposes or that 5
is multi-unit residential property with at least eight residential units, and that 6
meets one of the following requirements: 7
(A) within the last five years, has been the subject of an 8
order by a government agency requiring environmental remediation of 9
the property or requiring the property to be vacated, condemned, or 10
demolished by reason of noncompliance with laws, ordinances, or 11
regulations; 12
(B) has a structure on the property that is not less than 15 13
years old and that has not undergone substantial rehabilitation, 14
renovation, demolition, removal, or replacement, subject to any conditions 15
prescribed in the ordinance; or 16
(C) is located in a deteriorating or deteriorated area with 17
boundaries that have been determined by the municipality [HAS THE 18
MEANING GIVEN IN AS 29.45.050]. 19
* Sec. 2. AS 29.45.050(a) is amended to read: 20
(a) A municipality may classify and exclude or exempt or partially exempt 21
real [RESIDENTIAL] property from taxation by ordinance [RATIFIED BY THE 22
VOTERS AT AN ELECTION]. An exclusion or exemption authorized by this 23
subsection 24
(1) may be applied with respect to taxes levied in a service area to fund 25
the special services; 26
(2) must be approved by the voters if the exclusion or exemption 27
exceeds $75,000 for a property. [AN EXCLUSION OR EXEMPTION 28
AUTHORIZED BY THIS SUBSECTION MAY NOT EXCEED THE ASSESSED 29
VALUE OF $75,000 FOR ANY ONE RESIDENCE EXCEPT THAT A 30
MUNICIPALITY MAY, BY ORDINANCE, ANNUALLY ADJUST THE 31
34-LS1052\N
HB0291a -3- HB 291
New Text Underlined [DELETED TEXT BRACKETED]

MUNICIPALITY'S VOTER-AUTHORIZED EXEMPTION BY THE AMOUNT 1
CALCULATED BY THE STATE ASSESSOR TO REFLECT THE INCREASE, IF 2
ANY, IN THE ANNUAL AVERAGE COST OF LIVING, USING THE UNITED 3
STATES DEPARTMENT OF LABOR CONSUMER PRICE INDEX FOR URBAN 4
ALASKA.] 5
* Sec. 3. AS 29.45.050(i) is amended to read: 6
(i) A municipality may by ordinance approved by the voters exempt from 7
taxation the assessed value that exceeds $150,000 of real property owned and 8
occupied as a permanent place of abode by a resident who is 9
[(1)] 65 years of age or older [; 10
(2) A DISABLED VETERAN, INCLUDING A PERSON WHO WAS 11
DISABLED IN THE LINE OF DUTY WHILE SERVING IN THE ALASKA 12
TERRITORIAL GUARD; OR 13
(3) AT LEAST 60 YEARS OLD AND A WIDOW OR WIDOWER 14
OF A PERSON WHO QUALIFIED FOR AN EXEMPTION UNDER (1) OR (2) OF 15
THIS SUBSECTION]. 16
* Sec. 4. AS 29.45.055(a) is amended to read: 17
(a) A municipality may by ordinance classify as to type and totally exempt 18
some or all types of personal property from ad valorem taxes and levy a flat tax 19
on the exempted personal property [THAT HAS BEEN TOTALLY EXEMPTED 20
FROM AD VALOREM TAXES UNDER AS 29.45.050(b)]. A municipality that 21
levies a flat tax may classify the property as to type based on any characteristic and tax 22
each item of property of the same type at a specific amount. A flat tax may be levied 23
on all or on only some types of personal property. The flat tax ordinance must include 24
a procedure under which the taxpayer may appeal the determination of ownership or 25
classification of property subject to the tax. The municipality may establish procedures 26
necessary to collect the tax. 27
* Sec. 5. AS 29.45.050(b), 29.45.050(c), 29.45.050(d), 29.45.050(e), 29.45.050(f), 28
29.45.050(g), 29.45.050(h), 29.45.050(j), 29.45.050(k), 29.45.050(l), 29.45.050(m), 29
29.45.050(n), 29.45.050(o), 29.45.050(p), 29.45.050(q), 29.45.050(r), 29.45.050(s), 30
29.45.050(t), 29.45.050(u), 29.45.050(v), 29.45.050(w), 29.45.050(x), 29.45.050(y), and 31
34-LS1052\N
HB 291 -4- HB0291a
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29.45.050(z) are repealed. 1