Section 20 AAC 40.610 - Allocation of trust land revenues between principal and income(a) Revenues received from the management of trust land will be allocated between principal and income as follows: (1) to principal, (A) net proceeds from land sales transactions; (B) net proceeds from royalties from resource transactions; and (C) net proceeds from permanent easements;(2) to income, (A) interest and transaction costs;(B) recovery of development costs from:(ii) royalties for other resource transactions and(iii) perpetual easements;(D) rents and other revenues from the temporary use of land, regardless of whether the use is exclusive or non-exclusive, or is short- or long-term.(b) Development costs are attributable to the management of specific trust land in preparation for a transaction if the authority approves the cost in advance as follows: (1) The authority will base approach on a development plan that considers (A) the value of the land before the commitment of development costs compared to the value of the improved land ; (B) the risk that the value of the improvement will not be realized; and (C) the duration of time between improvement and consummation of the land transaction(2) Development costs not approved in advance are generally not attributable to the management of specific trust land in preparation for a transaction(3) Notwithstanding (2) of this subsection, if a timber sales transaction is not subject to an approved development plan, net proceeds will be allocated 85 percent principal and 15 percent to income.(c) Valuations for the purposes of this section will be based on the best evidence reasonably obtainable. After reviewing the methodology and supporting evidence, the board may rely on Department of Natural Resources estimates of value.(d) In this section (1) "development costs" means all expenses reimbursed to the Department of Natural Resources under AS 37.14.041(a)(4)(B) attributable to the management of specific trust land in preparation for a transaction, including surveying, marketing, clearing, accessing, improving, or otherwise enhancing the value or marketability of the land (2) "net proceeds" means all financial or other consideration attributable to a transaction less (3) "trust land" or "land" has the meaning given in 11 AAC 99.990 except that an interest real property held indirectly through a business entire is not land, but may be treated as an intangible asset for purposes of allocation if the land and the entity are sold in the same transaction.Eff. 10/24/2004, Register 172; am 12/25/2020, Register 236, January 2021Authority:AS 37.14.031
AS 47.30.031