4.45.080 Optional exemptions and exclusions.
(a) The borough may exclude or exempt or partially exempt residential property from taxation by ordinance ratified by the voters at a regular or special election. An exclusion or exemption authorized by this section may not exceed the assessed value of $10,000 for any one residence.
(b) The borough assembly hereby classifies and exempts from taxation:
(1) The property of organizations not organized for business or profit-making purposes and used exclusively for community purposes; provided, that income derived from rental of such property does not exceed the actual cost to the owner of the use by the renter;
(2) Business inventories; and
(3) All personal property except: (1) that which is defined in KGBC 1.10.020 and 4.45.010 as part of real property; and (2) motor vehicles that are included in KGBC 4.45.030 and levied a registration tax under AS 28.10.431.
(c) The provisions of subsection (a) of this section notwithstanding, the borough assembly may, by ordinance, adjust its property tax structure in whole or in part to the property tax structure of a city in the borough, including, but not limited to, excluding personal property from taxation, establishing exemptions, and extending the redemption period.
(d) Exemptions or exclusions from property tax which have been granted by home-rule municipalities in addition to exemptions authorized or required by law, and which are in effect on September 10, 1972, and not later withdrawn, are not affected by this section.
(e) The following specific property is hereby exempted from taxation by the borough:
(1) The real and personal property of the North Tongass Community Club.
(2) Any property or part of the property of said North Tongass Community Club from which rentals or income are derived is not exempted from taxation under subsection (e)(1) of this section unless the income derived from the rentals does not exceed the actual cost to the owner of the use by the renter.
(f) Commencing on January 1, 1998, that part of real or personal property used in a manufacturing business not exceeding a value of $5,000,000 that:
(1) Has not previously been taxed as real or personal property by the borough; and
(2) Is used in a trade or business having fewer than 100 annual full-time equivalent employees in a way that:
a. Creates employment in the borough; and
b. Generates sales outside of the borough of goods produced in the borough, or materially reduces the importation of goods from outside the borough by substituting locally manufactured goods; and
(3) Has not been used in the same trade or business in another municipality for at least six months before the application for deferral or exemption is filed; this subsection does not apply if the property was used in the same trade of business in an area that has been annexed to the borough within six months before the application for deferral or exemption is filed; this subsection does not apply to inventories. Such real property or personal property shall be exempted as follows:
|
Percent of Full Taxation |
|
|---|---|
|
Year one |
0% |
|
Year two |
20% |
|
Year three |
40% |
|
Year four |
60% |
|
Year five |
80% |
|
Year six |
100% |
(4) In order to qualify for this exemption, the claimant must file a written application for the exemption no later than January 31 of the first assessment year in the five-year period for which the exemption is sought. The application shall be on a form prescribed by the borough assessor and shall include all information determined necessary by the assessor to determine eligibility of the property for the exemption. No exemption shall be granted unless determined eligible by the assessor and approved by the assembly under this section. Exemptions may be granted to property owners not engaged in a manufacturing business if the application is accompanied by evidence of a binding obligation to remit the full value of the exemption to a manufacturing enterprise using the property. The total exemption for any related manufacturing operation or operations shall not exceed $5,000,000.
(5) An applicant delinquent in the registration for, filing or payment of any property tax, sales tax, excise tax, special assessment or fee may not be granted an exemption under this subsection. If a person owning property previously granted an exemption under this subsection thereafter becomes delinquent in the registration for, filing or payment of any property tax, sales tax, excise tax, special assessment or fee, the exemption under this subsection shall, upon a written finding of the delinquency by the manager, be revoked for the following tax year.
(g) Pursuant to AS 29.45.050(p), a private leasehold, contract, or other interest held by or through an applicant or proposed applicant in any property, assets, project, or development project owned by the Alaska Industrial Development and Export Authority under AS 44.88 is exempt from property tax. The borough manager may negotiate a payment in lieu of taxes for property exempt under this section. Any such agreement is subject to assembly approval. [Ord. No. 1621, §1, 3-5-12; Ord. No. 1543, §2, 12-21-09; Ord. No. 1345, §1, 3-28-05; Ord. No. 1025, §1, 5-5-97; Ord. No. 558, §§4 – 7, 2-18-86; Ord. No. 484, §1, 1-3-84; Ord. No. 13. Code 1974 §45.11.025. Code 1969 §69.05.015.]
Annotation – The legislature of a state or territory may classify property for purposes of taxation and may exempt particular property in the absence of some limitation contained in the Constitution or other organic law. But the authority of a municipal corporation to allow such exemption, unless expressly conferred by law, has generally been denied. Valentine v. Juneau, 5 Alas F 467, 36 F2d 904, 1929.