The Alaska Senate passed and approves a bill that would apply policy for local governments to encourage the construction and maintenance of developments.
Alaska Senate Passes The Bill To Allow Exemptions To The Municipal Blight Tax and Property Tax
The Alaska Senate voted on Tuesday, the pass and approves a bill that would apply policy for local governments to encourage the construction and maintenance of developments.
Senate Bill 77 provision would give an opportunity to exempt the owners of newly built and reconstruct commercial properties from paying some of the property taxes in the city. Also, another provision would allow municipalities to increase the property taxes of property owners whose property has been ruined or wrecked by as much as 50%. Anchorage Democrat Forrest Dunbar, bill sponsor said that the Senate bill is aiming to help develop housing and add the high cost of construction in Alaska and the exemption would help some property owners to lower the cost.
According to Dunbar, Housing in Alaska is very difficult, they are having a hard time producing new houses. Under state law, municipalities can only exempt a part of new commercial development including apartments and small properties. The bill would change that and will allow the entire value to be exempt for a designated period of time.
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Alaska Senate Allows The Bill To Municipal Blight Tax and Property Tax Exemptions
The blight tax would not apply to any primary residence, so good news for people who have low incomes because they would still have a place to live. On Thursday, the Senate version of the new bill is already scheduled for hearing with the House Community and Regional Affairs Committee. If the Senate will pass the bill then it would pass over to the Republican Gov. Mike Dunleavy and he will allow it to make law.