Sponsor Statement for SB 78

Funding the Senior and Disabled Veteran Property Tax Exemption

On February 5, 1997, I introduced legislation that will put in place a mechanism to fund the Senior Citizen Property Tax Exemption, which includes an exemption for disabled veterans and for widows of disabled veterans.

The legislation I have proposed will charge the Alaska Housing Finance Corporation with the responsibility for subsidizing these housing needs for seniors and disabled veterans.

Why should this be done?

There are several reasons. First, State law already recognizes that seniors and disabled veterans deserve some relief from property taxes on residences (and for the property of those who rent to seniors and disabled veterans).

Second, that State mandated exemption results in lost tax receipts for local governments. Some might call these exemptions unfunded state mandates. I prefer to focus on the fact that the exemption has the effect of subsidizing senior and disabled veteran housing needs.

If there were not some exemption from taxation on housing for seniors and disabled veterans, local government might collect more in property taxes than is possible because of an existing state mandated exemption. In the past, the Legislature has funded all or part of the estimated loss in local taxes resulting from this exemption.

Currently, the Legislature does not provide any funding for the exemption, my bill provides a vehicle to reimburse local government for the property tax exemptions. I look forward to helping with the housing needs of seniors and disabled veterans.