Amends AS 29.45.030(a) by revising subsection (8) to include private properties on military bases as being exempt from general taxation, as long as they enter into an agreement to make a payment in lieu of taxes.

Amends AS 29.45.050(a) by

1. inserting language clarifying that the municipality has the authority to exclude or exempt with respect to service areas.
2. deleting $10,000 and inserting $20,000.

Amends AS 29.45.050(o) by

• extending the term of the deteriorated property exemption from 5 years to ten years.
• adding "demolition, removal" as an action taken on the deteriorated property.
• adding that one of the three requirements must be met
• adding a time specific requirement of five years to subsection (1)
• adding language specific to environmental remediation required by a government agency to subsection (1)

Amends AS 29.45.050(o) by extending the repealer to 2010.

Immediate effective date section.

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