MUNICIPAL PROPERTY TAX EXEMPTIONS; REFUND, the official text

Enrolled HB 13 
 Relating to optional municipal property tax exemptions for real property owned and occupied 
 by volunteer certified or licensed providers of fire fighting, emergency medical, mobile 
 intensive care paramedic services, or hazardous materials response services; relating to 
 optional municipal property tax exemptions for certain long-term rental units, certain mobile 
 home parks, real property rented to low-income families, real property owned and occupied as 
 a permanent place of abode, and real property owned by first-time homebuyers; and relating 
 to municipal tax refunds. 
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 * Section 1. AS 29.45.050(r) is amended to read: 
 (r) A municipality may by ordinance exempt or partially exempt from 
 taxation [AN AMOUNT NOT TO EXCEED $10,000 OF THE ASSESSED VALUE 
 OF] real property owned and occupied as a permanent place of abode by a resident 
 who provides in the municipality volunteer (1) fire fighting services and is certified as

a firefighter by the Department of Public Safety; [, OR] (2) emergency medical 
 services or mobile intensive care paramedic services and is certified or licensed under 
 AS 18.08.082; or (3) hazardous materials response services. If two or more 
 individuals are eligible for an exemption for the same property, not more than two 
 exemptions may be granted. 
 * Sec. 2. AS 29.45.050 is amended by adding new subsections to read: 
 (aa) A municipality may by ordinance exempt or partially exempt from 
 taxation a structure that contains a dwelling unit that was converted from use as a 
 short-term rental unit to exclusive use as a long-term rental unit. In this subsection, 
 (1) "dwelling unit" has the meaning given in AS 34.03.360; 
 (2) "long-term rental unit" means a dwelling unit offered for rent for 
 periods of not less than 31 consecutive days; 
 (3) "short-term rental unit" means a dwelling unit offered for rent for 
 periods of 30 consecutive days or less; "short-term rental unit" does not include a 
 (A) hotel, motel, or bed and breakfast; 
 (B) commercially operated hunting or wilderness camp; or 
 (C) dwelling unit operated by a government entity or charitable 
 organization that provides temporary housing to individuals or family members 
 of individuals who are being treated for trauma, injury, or disease. 
 (bb) A municipality may by ordinance exempt or partially exempt from 
 taxation a mobile home park for up to 10 years after the mobile home park is 
 constructed or renovated. 
 (cc) A municipality may by ordinance exempt or partially exempt from 
 taxation real property rented to a low-income family if the monthly rent charged to the 
 low-income family is not more than 30 percent of the family's income. In this 
 subsection, 
 (1) "family's income" means the sum of the previous tax year's 
 adjusted gross incomes for each person in the family who earned income divided by 
 12; 
 (2) "low-income family" has the meaning given to "low-income 
 families" in 42 U.S.C. 1437a(b)(2)(A).

(dd) A municipality may by ordinance exempt or partially exempt from 
 taxation real property owned and occupied as a permanent place of abode by a resident 
 of the municipality. 
 (ee) A municipality may by ordinance exempt or partially exempt from 
 taxation residential real property owned and occupied by a first-time home buyer. 
 * Sec. 3. AS 29.45.500(a) is amended to read: 
 (a) If a taxpayer pays taxes under protest, the taxpayer may bring suit in the 
 superior court against the municipality for recovery of the taxes. If judgment for 
 recovery is given against the municipality, or, if in the absence of suit, it becomes 
 obvious to the governing body that judgment for recovery of the taxes would be 
 obtained if legal proceedings were brought, the municipality shall refund the amount 
 of the taxes to the taxpayer with interest [AT EIGHT PERCENT] from the date of 
 payment plus costs. The interest rate is three percentage points above the 12th 
 Federal Reserve District discount rate in effect on January 2 of the year of 
 payment. 
 * Sec. 4. AS 29.45.500(b) is amended to read: 
 (b) If, in payment of taxes legally imposed, a remittance by a taxpayer through 
 error or otherwise exceeds the amount due, and the municipality, on audit of the 
 account in question, is satisfied that this is the case, the municipality shall refund the 
 excess to the taxpayer [WITH INTEREST AT EIGHT PERCENT FROM THE DATE 
 OF PAYMENT]. A claim for refund filed one year after the due date of the tax is 
 forever barred.