The Office of the State Assessor advises and assists municipalities and constituents on assessment and taxation issues, which are codified and referenced in the Alaska Statutes. New legislation potentially affecting property taxation will be highlighted here, and comprehensive reference materials to all current and repealed legislation can be found by accessing the information basis of the Alaska State Legislature.
This legislation allows for an optional municipal property tax exemption, for real property that is the primary residence of certain widows and widowers, by ordinance approved by the voters. (AS 29.45.050(e)).
The Residential Tax Exemption Initiative, “an Act Increasing the Maximum Residential Property Exemption and Providing for Annual Adjustments,” changed the maximum value of residential property tax a municipality can exempt, from $20,000 to $50,000, by ordinance and voter ratification. The amendment also permits the municipality to annually adjust the exemption, by ordinance, to reflect inflation as measured by the Consumer Price Index (CPI-U) for Anchorage (AS 29.45.050(a)).
This legislation classifies mobile homes, trailers, house trailers, trailer coaches, and similar property to be used, or intended to be used, for residential, office or commercial purposes and permanently affixed to real property to be classified as real property for tax purposes, unless expressly classified as personal property by ordinance (AS 29.45.070).
This legislation also defined the term “permanently affixed” to mean: a manufactured home is permanently affixed when it is (1) anchored to real property by attachment to a permanent foundation; (2) constructed in accordance with applicable state and local building codes and manufacturer's specifications as provided in the Model Manufactured Home Installation Standards of the federal Department of Housing and Urban Development (24 C.F.R. 3285); and (3) connected to a residential utility, including water, gas, electricity, sewer, or septic service.
This legislation allows for a municipality, by ordinance, to permit the deferral of payment of taxes on all or a portion of the increase in assessed value directly attributable to the subdivision of a single parcel of property into three or more parcels, and any improvements made to the property necessitated by its subdivision. This deferral may be permitted for up to five years or less and outlines provisions for the deferral’s termination (AS 29.45.051).