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FY2018-09 Requesting That The Legislature Amend The Senior Citizens/Disabled Veteran's Property Tax Exemption (AS 29.45.030(g)), By Reinstituting The Means Based Provision, And Exclude The Value From The Determination Under AS 14.17.510 1 Introduced by:KIB Assembly 2 Drafted by:AML/Assembly member Crow 3 Introduced on:08/03/2017 4 Adopted on:08/03/207 5 6 KODIAK ISLAND BOROUGH 7 RESOLUTIONNO. FY2018-09 8 9 A RESOLUTION REQUESTING THAT THE LEGISLATURE AMENDTHE SENIOR 10 CITIZENS/DISABLED VETERAN'S PROPERTY TAX EXEMPTION (AS 29.45.030(g)), BY 11 REINSTITUTING THEMEANS BASEDPROVISION, AND EXCLUDE THE VALUE FROM 12 THE DETERMINATION UNDER AS 14.17.510, TO ENSURE THE FAIR AND EQUITABLE 13 TREATMENT OF ALLPROPERTY OWNERS, WHILE ALSO PROVIDING EXEMPTIONS TO 14 THOSE WHO ARE ECONOMICALLYDISADVANTAGED 15 16 WHEREAS,in 1973, the State of Alaska mandated that all municipalities provide senior 17 citizens with a tax exemptionon the total assessed value of their residential property, on a 18 needs basis. During that year a total of nine-hundred & eleven (911) persons were exempt from 19 paying a total of$197,050in property taxto municipalities, which the State reimbursed the 20 municipalities for, and 21 22 WHEREAS,the needs based provision was removedfrom this mandate in 1974; disabled vets 23 and surviving spouses were addedin 1985; and the law was amended to limit the exemption to 24 the first $150,000 of the assessed property value in 1986; and 25 26 WHEREAS,theState of Alaska stopped reimbursing municipalities for this mandated 27 exemption in1997, and 28 29 WHEREAS,by 2015 thirty-five thousand five-hundred and sixty-one(35,561) persons were 30 exempt from paying a total of $66,223,849 in property taxes; and 31 32 WHEREAS,the exemption was givento these two groups because of perceived economic 33 disadvantages;and 34 35 WHEREAS,these exemptions are placingmore and more of a financial burden on all other 36 property owners, some of whom are legitimately economically disadvantaged; and 37 38 WHEREAS,while some of the currently exempt population iseconomically disadvantaged 39 and should continue to receive thisexemption, many who receive it are not;and 40 41 WHEREAS,this mandatory exemption further burdens municipalities by barring revenues 42 needed to fund essential government services, and 43 44 WHEREAS,Stateand Federal fundsto support municipal services arebeing reduced. 45 Kodiak Island Borough, AlaskaResolutionNo. FY2018-09 Page 1 of 2 46 NOW, THEREFORE, BE IT RESOLVED that the Kodiak Island Borough Assembly strongly 47 requests thatthe Alaska Municipal League urgethat the legislature amendthe Senior 48 Citizen’s/Disabled Veteran’s Property Tax Exemption (AS 29.45.030(g)), excluding the value 49 from the determination under AS14.17.510, by reinstituting and administering a means based 50 determination to allow only those senior citizens and disabled veterans and their spouses who 51 are economically disadvantaged to continue receiving this exemption. 52 53 BE IT FURTHER RESOLVED that upon adoption, this Resolution shall be submitted to the 54 membership of the Alaska Municipal League for consideration and adoption. 55 56 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 57 THIS THIRDDAY OF AUGUST, 2017. 58 59 60 VOTES: 61 Ayes:Crow, LeDoux, Skinner, Smiley, Symmons 62 Noes:Townsend, Van Daele 63 Kodiak Island Borough, AlaskaResolutionNo. FY2018-09 Page 2of 2