AK SB106

Removes the five-year limit on municipal tax exemptions and deferrals for economic development property, allowing municipalities to establish exemptions for a designated period without a fixed maximum duration.

Eliminates the renewal restriction that previously allowed school districts to only exempt taxes exceeding amounts levied on other property, replacing it with a simpler "designated period" framework.

Restructures eligibility criteria for economic development property to require one or more of the following: property not previously taxed by the municipality, property used in trade or business that creates employment or generates external sales, or property enabling significant capital infrastructure investment that expands the tax base.

Adds a new municipal tax exemption allowing structures with approved fire protection systems to receive up to a two percent exemption on assessed value, with the baseline assessment determined by either the 1981 value (if system existed then) or the January 1st value following installation.

Repeals AS 29.45.030(l), which previously contained restrictions on municipal tax exemptions.