(SitNews) Juneau, Alaska - The Alaska House of Representatives today passed legislation granting greater local control over some economic development tax exemptions and deferrals to local governments.

House Bill 370, by the House Community and Regional Affairs Committee, changes the requirement that a full or partial property tax exemption or deferral for economic development property be limited to five years and instead limits it to 20 years. By changing the requirement, it gives municipalities the discretion to set the exemption timeframe based on the type of economic development property.

“In this difficult budgetary environment, we’re unable to provide Alaska’s municipalities new or additional monetary resources,” Representative Cathy Tilton, R-Wasilla, and Chair of the Community & Regional Affairs Committee, said. “However, we can provide them non-monetary assistance in the form of statutory changes allowing them greater local control to encourage new investment in their areas.

“The committee heard from municipalities, various economic development corporations and the Alaska Municipal League about the need for this change,” Tilton said. “What the committee was told is that the current 5 year limitation with the option for a renewal is simply too restrictive for many municipalities to use in a meaningful way to incentive large scale economic development projects.”

HB 370 also changes the requirements to be eligible for a tax exemption by adding that the exemption or deferral on the property enables a significant capital investment in physical infrastructure that expands the tax base of the municipality and will generate property tax revenue after the exemption expires.

HB 370 passed the House on a vote of 39-0 and now moves to the Alaska Senate for consideration.

On the Web:

HB370 "An Act relating to military facility zones; and relating to a municipal tax exemption or deferral for economic development property."
http://www.akleg.gov/basis/Bill/Detail/29?Root=HB%20370

Edited by Mary Kauffman, SitNews

Source of News:

Alaska House Majority
housemajority.org

 

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