The proposed bill allows municipalities in Alaska to implement optional property tax exemptions for various types of residential properties. Specifically, it introduces provisions for the exemption or partial exemption of structures converted from short-term to long-term rental units, mobile home parks for up to ten years post-construction or renovation, and real property rented to low-income families, provided the rent does not exceed 30% of the area's median family income. Additionally, the bill permits exemptions for properties owned and occupied as a permanent residence by local residents and for residential properties owned by first-time homebuyers.

The bill amends AS 29.45.050 by adding new subsections that define key terms such as "long-term rental unit" and "short-term rental unit," while also clarifying the conditions under which these exemptions can be applied. The language specifies that short-term rentals do not include certain types of accommodations like hotels or government-operated temporary housing. Overall, the bill aims to support affordable housing initiatives and encourage long-term rental options within municipalities.

Statutes affected:
HB0013A, AM HB 13, introduced 01/10/2025: 29.45.050
HB0013B, AM SSHB 13, introduced 03/10/2025: 29.45.050