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A. The Assembly may grant a partial or total exemption and/or deferral for economic development property only if the granting of such exemption and/or deferral will provide economic benefit to the Borough, and:

1. The exemption and/or deferral will provide measurable public benefits commensurate with the level of incentive granted;

2. The property owner is in compliance with all Alaskan municipal and State of Alaska tax obligations;

3. The location of the trade, industry, or business is compatible with land use and development plans of the Borough; and

4. The exemption and/or deferral is necessary to allow adequate time for improvements to be completed and revenue to be generated by the property.

B. For purposes of this section, “economic development property” means real or personal property, including developed property conveyed under 43 USC 1601 through 1629e (Alaska Native Claims Settlement Act), to which one or more of the following apply:

1. Has not previously been taxed as real or personal property by the Borough;

2. Is used in a trade or business in a way that:

a. Creates employment in the Borough; or

b. Generates sales outside of the Borough of goods or services produced in the Borough; or

c. Materially reduces the importation of goods or services from outside the Borough; or

3. An exemption and/or deferral on the property enables a significant capital investment in physical infrastructure that:

a. Expands the tax base of the municipality; and

b. Will generate property tax revenue after the exemption expires; or

4. Has not been used in the same trade or business in another municipality for at least six months before the application for deferral or exemption is filed; this limitation does not apply if the property was used in the same trade or business in an area that has been annexed to the Borough within six months before the application for deferral or exemption is filed; this subsection does not apply to inventories. (Ord. 2022-11 § 4, 2022; Ord. 2017-16 § 3, 2017; Ord. 2005-26 § 3, 2005. 2004 Code § 3.11.030.)