Juneau -- The Alaska Senate Thursday, by a vote of 19-1, passed House Bill 76, sponsored by Representative Andrew Halcro (R-Anchorage). HB 76 clarifies ambiguities in current law to provide for tax deferrals or exemptions for deteriorated property.

"This bill makes minor changes to a law passed in the last Legislative session which authorizes municipal governments to exempt and defer tax payments on deteriorated property," Halcro said. "These changes are required before municipalities can fully utilize this urban renewal tool."

HB 76 was introduced 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
• prohibit an exemption and deferral of property taxes from being in effect simultaneously.

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

HB 76 now goes back to the House for concurrence with Senate changes.