Office of the State Assessor

Alaska Statutes

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 StatutesNew 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affecting property taxation will be highlighted here, and comprehensive reference materials to all current and repealed legislation can be found by accessing the information basis of the Alaska State Legislature.

New Legislation

Military Facility Zones Optional Exemption (AS 29.45.050(v)):

This optional exemption was adopted to authorize municipalities to exempt or partially exempt for up to 10 years property in a military facility zone that creates or supports industry, development, or educational or training opportunities. This legislation became effective October 5, 2014.

Charter School Leased or Rented Real Property Optional Exemption (AS 29.45.050(w)):

This optional exemption was adopted authorizing municipalities by ordinance to classify and exempt, or partially exempt, from taxation all or a portion of privately owned real property rented or leased for use as a charter school established under AS 14.03.250.   This legislation was actually cofidfied in error as AS 29.45.050(v), and is expected to be corrected via manifest error to AS 29.45.050(w).  The relevant legislation became effective September 19, 2014, and can be located via the hyperlink above.

Senior Citizens' and Disabled Veteran Required Exemption (AS 29.45.030(e)):

This mandatory exemption was amended to include widows and widowers of those deceased from a service-connected cause sustained while serving in the United States Armed Forces, or as a member of the National Guard. This legislation became effective January 1, 2013.

Farm Structure Optional Exemption (AS 29.45.050(t)-(u)):

This legislation added optional exemption subsections AS 29.45.050(t) and AS 29.45.050(u) to partially or totally exempt farm structures from taxation. This legislation became effective September 26, 2013, and will expire on September 26, 2023.

Statutory Tax Cap Formula (HCS CSSB0138(FIN)):

HCS CSSB138(FIN) updates what is commonly known as the 225% tax cap formula, by making this percentage vary according to the total tax rate of a municipality. This tax cap percentage is a key component of the 30-mill tax limit on the operating budget. This change will allow municipalities the option of collecting more property tax revenues for their operating budgets as the total tax rate declines. This limitation applies to both AS 29.45.080 and the 29.45.090 tax limitation calculations, but does not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. This legislation became effective May 8, 2014.

Transfer on Death Deed (CSHB60):

Although this legislation is not directly related to property taxation, it does allow for the transfer of real property upon death, and could potentially come into play in regard to the Senior Citizens'/Disabled Veterans' property tax exemption eligibility.  Currently it is unclear if a new deed must be recorded upon the death of the original property owner.

Recent Court Opinions Affecting Property Taxation

State of Alaska and Municipality of Anchorage v. Julie A. Schmidt, Gayle Schuh, Julie M. Vollick, Susan L. Bernard, Fred W. Traber and Laurence Snider (Supreme Court No. S-14521):

This Supreme Court ruling extends the mandatory Senior Citizen/Disabled Veteran $150,000 real property homeowner's exemption to same-sex couples in Alaska. The Supreme Court affirmed the superior court’s declaration that "in combination," AS 29.45.030(e) and 3 AAC 135.085(a) and (c) violate Alaska’s equal protection clause by imposing a spousal limitation that facially discriminates against same-sex domestic partners."