Juneau -- The Alaska House of Representatives Monday passed House Bill 76, sponsored by Representative Andrew Halcro (R-Anchorage). HB 76 clarifies ambiguities in current law to provide for the tax deferral for deteriorated property.

"The 20th Alaska Legislature approved a measure last year which authorizes municipal governments to exempt and defer tax payments on deteriorated property," Halcro said. "This bill makes minor changes to the statute which are required before municipalities can fully utilize this urban renewal tool."

HB 76 comes in response to a request for technical amendments by the Municipality of Anchorage, which has adopted a Municipal Ordinance (OA-98-135) providing for this tax deferral. These amendments:

• clarify that a municipality may either partially or totally exempt a deteriorated property from municipal taxes;
• provide that the exemption may begin any time on or after substantial rehabilitation begins; and
• prohibits an exemption and deferral of property taxes to be in effect simultaneously.

These exemptions and deferrals are designed to encourage redevelopment of property which has fallen into disrepair or disuse.

HB 76 now moves to the Senate.