HB291 MUNICIPAL PROPERTY TAX EXEMPTIONS | Alaska Bill

Plain English Breakdown

The effective date is not provided in the source material.

Municipal Property Tax and Landfill Fee Exemptions

This bill allows Alaska municipalities to create rules that lower or remove landfill fees for waste from fixing old properties and lets them offer property tax breaks without needing a voter vote if the amount is $75,000 or less.

What This Bill Does

Allows municipalities to exempt landfill fees for waste created by rehabilitating, renovating, demolishing, removing, or replacing structures on deteriorated properties.
Defines 'deteriorated property' as residential areas owned by entities with at least two homes and eight units in a designated area, or commercial/multi-unit buildings that are 15 years old without major updates or have been ordered vacated/condemned/demolished.
Removes the requirement for voters to approve municipal property tax exemptions if the amount is $75,000 or less per property.
Changes the rule so municipalities can exempt all assessed value over $150,000 only for residents aged 65 and older who own their homes as a permanent place of abode.
Repeals previous laws that allowed tax breaks specifically for disabled veterans and widows or widowers of qualified individuals.

Who It Names or Affects

Municipalities in Alaska
Owners of deteriorated residential or commercial properties generating waste from rehabilitation or demolition
Residents aged 65 years or older who own their homes as a permanent place of abode

Terms To Know

Deteriorated property: Real estate that is in poor condition, such as buildings ordered to be fixed by the government or structures at least 15 years old without major updates.
Ordinance: A local law passed by a city council or municipal body.

Limits and Unknowns

The bill does not state when it will officially take effect.
Municipalities must still write specific rules and require written applications for the landfill fee exemptions to work.
Cities may choose whether or not to use these new options; they are not required to offer them.

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

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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
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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
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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
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29.45.050(z) are repealed. 1