HB 411 Summary

• Increases the residential property tax exemption cap from $50,000 to $75,000 in assessed value per residence, with annual adjustments based on the Consumer Price Index for Urban Alaska.

• Allows municipalities to apply tax exemptions or deferrals on economic development property even in service areas supervised by elected boards, unless the board objects within 60 days of the ordinance's effective date.

• Expands the definition of "economic development property" eligible for exemptions or deferrals to include property that creates employment, generates external sales, reduces imports, or enables significant capital investment in infrastructure that expands the tax base.

• Allows boroughs to use revenue from taxes or other funding sources to carry out economic development agreements with cities, removing restrictions on whether funds are collected on an areawide or nonareawide basis.

• Adds a new definition of "economic development" as any action intended to increase or avoid a decrease in economic activity, gross domestic product, or the tax base.