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Property Tax Exemptions
in Alaska |
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Contents
Introduction
Frequently Asked Questions
Narrative
Additional Resources
Applicable Laws
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| Introduction Back
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Alaska has two kinds of property
tax exemptions. These are exemptions that are required
by law, and optional exemptions that a taxing authority may authorize.
All municipalities must grant exemptions that are required
or mandated in state law. Optional exemptions will vary
depending on whether and what kind of additional exemptions
the taxing authority has enacted. A review of the "Alaska
Taxable"will
show many of the optional exemptions, but it is a good
idea to contact the local assessor's office (see "Directory
of Tax Jurisdictions")
for an up-to-date listing of those exemptions that may
be available.
The State of Alaska
Constitution,
Article IX, Section 4, provides that, subject to conditions
and exceptions provided by law, property of the state
and its political subdivisions and property used for
nonprofit, religious, charitable, cemetery, or educational
purposes is exempt from taxation and provides that other
exemptions may be granted by law. In addition to those
listed above,
AS 29.45.030 provides
for additional mandatory exemptions, which are spelled
out in statute.
AS 29.45.050 identifies
some optional exemptions that, if the taxing authority
chooses to adopt, must be enacted by ordinance and ratified
through an election. This statute also identifies additional
exemptions that may be enacted by ordinance without voter
ratification.
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| Frequently
Asked
Questions Back
to
Top |
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Are there tax exemptions
available for residential property owners?
Yes, there are some mandatory
exemptions and some optional exemptions. These exemptions,
however, apply only to certain properties. Under AS
29.45.030(e),
there is a mandatory exemption up
to the first $150,000 of assessed value for
the primary residence of a senior citizen, age 65 years
and older, or a disabled veteran with a service connected
disability of 50% or more. This exemption must be applied
for by January 15 unless another date not later than March
31 is provided by ordinance on a form approved by the state
assessor. (A municipality may waive timely filing for good
cause.) All municipalities are required to grant this exemption.
AS 29.45.050 identifies
an extensive list of optional exemptions a municipality
may enact, including but not limited to, up to $10,000
of a primary residence and provides the option of
applying the senior citizen/disabled veteran exemption
in excess of the first $150,000 in the case of hardship.
Contact the local assessors' office (see "Directory
of Tax Jurisdictions" )
to find out what exemptions are available in the particular
municipality. The local assessor's office should have application
forms available to apply for exemptions.
Is there a tax exemption
available for the disabled?
The only tax exemption available
under state law for a disability is the disabled veteran
tax exemption.
Is personal property taxable
in Alaska?
Yes, personal property is taxable
in Alaska; however, state law does allow municipalities
to either partially or totally exempt all or different
categories of personal property (AS 29.45.050(b)(2).) Check
with the local assessor's office to find out if personal
property is assessed and if there are any exemptions.
Is
property of a "non-profit" organization
exempt from property taxes?
Yes,
in some cases, but there are certain limitations, which
are clarified in the law.
Property owned by a "non-profit" organization
has to be used for specific purposes in order to be exempt,
and the statutes are very clear on what those uses are.
The uses are exclusively for (non-profit) charitable,
religious, cemetery, hospital, or educational purposes
(AS 29.45.030(a).)
Is city or state property
still exempt from taxes if it is put to private use?
No, in most cases it is not.
Article IX, Section 5 of the State
Constitution and
AS 29.45.030 state
that these interests are taxable, with certain exceptions,
and to "the extent of that interest." An
example of taxable property would be a leasehold on public
land.
Can a church have more than
one church residence (parsonage) exempt from property
taxes within the same municipality?
Yes. AS 29.45.030(b)
lists the property used for religious purposes that is
exempt
from taxation. These exemptions were addressed by
the Alaska Supreme Court, which has ruled that ".The
wording of paragraph (b)(1) allows a single parish to contain
more than one exempt residence." (City of Nome v.
Catholic Bishop, 707 P2d. 870 (Alaska 1985).)
If an exempt property is
used partly for a non-exempt purpose, does the property
lose its entire exemption?
No. Only that portion that
is used for a non-exempt purpose will be taxable. The remainder
of the property that is used for an exempt purpose will
stay exempt.
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| Narrative Back
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In general,
taxation
is more
common than exemptions. In order for property to be exempt
from taxes, the law must specifically exempt it. All property
owned by a non-profit is not necessarily exempt from taxes.
Being owned by a non-profit organization is only one of
the criteria that must be met. In Alaska, as with many
other states, it is the use of the property that
determines whether it is exempt. Contact the local assessor's
office (see "Directory of Tax
Jurisdictions")
to find out whether a particular use of property is exempt.
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| Additional
Resources Back
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Top |
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Publications
- Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska
Taxable
Websites
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| Applicable
Laws Back
to
Top |
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State of Alaska Constitution
- Article
IX, Section 1 - taxing
power, prohibitions
- Article
IX, Section 2 - non-discrimination
in tax rate
- Article
IX, Section 3 - assessment
standards, prescribed by law
- Article
IX, Section 4 - exemptions,
authority to prescribe additional exemptions by law
- Article
IX, Section 5 - government
property, taxability of private use of otherwise exempt
property
- Article
X, Section 2 - dedication
of taxing powers to boroughs and cities only
Alaska Statutes
- AS 29.10.200 - Limitation
on home rule powers, taxation, assessment, collections,
exemptions
- AS 29.25.010 - Acts
required to be by ordinance, levy taxes, establish
penalty
- AS 29.45.010 - Authority
to levy a property tax, areawide, nonareawide, service
area, home rule, first class second class
- AS
29.45.020 - Taxpayer notice,
format, delivery
- AS
29.45.030 - Taxable property
and mandatory exemptions, application for exemption,
ordinance establishing procedures and deadlines, waiver
for late
application, state reimbursement for exemptions, definitions
- AS
29.45.040 - Property tax
equivalency payments, application process
- AS
29.45.046 - River habitat
protection credit, eligibility, calculation method,
exemptions
- AS
29.45.050 - Optional exemptions,
ordinance ratification, mandatory cap on exemptions,
home-rule provisions
- AS
29.45.055 - Levy of flat
tax on personal property exempted from ad valorem tax
- AS
29.45.060 - Farm or agricultural
land
- AS
29.45.062 - Land subject
to a conversation easement
- AS
29.45.065 - Assessment of
private airports open for public use.
- AS
29.45.070-.070 - Mobile
homes, classification
- AS
29.45.080 - Tax on oil and
gas production and pipeline property, DOR valuation
- AS
29.45.090 - Tax Limitation
and mill rate equity
- AS
29.45.100 - No limitation
to pay for bonds
- AS
29.45.103 - Taxation records,
availability
- AS
29.45.105 - Errors in taxation
procedures, state assessor notice, appeal
- AS
29.45.110 - Full and true
value, assessment date, low income housing credit valuation
and exemption
- AS
29.45.120 - Returns
- AS
29.45.130 - Independent
investigations
- AS
29.45.140 - Violations;
authorization to prescribe penalties by ordinance
- AS
29.45.150 - Reevaluation
- AS
29.45.160 - Assessment roll
- AS
29.45.170 - Assessment notice
- AS
29.45.180 - Corrections
- AS
29.45.190 - Appeal
- AS 29.45.200 - Board
of Equalization
- AS
29.45.210 - Hearing
- AS
29.45.220 - Supplementary
assessment rolls
- AS
29.45.230 - Tax adjustments
on property affected by a natural disaster
- AS
29.45.240 - Establishment
of levy and determination of rate
- AS
29.45.250 - Rates of penalty
and interest
- AS
29.45.550 - Cities outside
boroughs
- AS
29.45.560 - Cities inside
boroughs
- AS
29.45.580 - Differential
tax zones
- AS 29.45.590 - Limited
property taxing power for second class cities
- AS
29.45.600 - Combining property
tax with incorporation of a second class city
- AS 29.60.010 - State
revenue sharing tax equalization formula
- AS 29.60.080 - Definitions
- AS
43.56.010 - Levy of municipal
tax on oil and gas exploration, production, and pipeline
property, limitation on tax assessment rate
- AS
43.56.020 - Exemptions on
levy of municipal tax on oil and gas exploration, production,
and pipeline property
- AS
43.56.030 - Tax in lieu
of
- AS
43.56.040 - State assessment
review board
- AS
43.56.060 - Commerce assessment
of oil and gas and pipeline property subject to taxation
- AS
43.82.210 - Payment in lieu
of taxes on stranded gas development projects
Regulations
- 3
AAC 131.010-.020 - certification
and notification of population for oil & gas property
tax limitations, alternate population determination
methods
- 3
AAC 131.030 - definitions
- 3
AAC 135.010-.085 - senior
citizen and disabled veteran exemptions, method of
application and forms, deadlines and calculations, eligibility
of spouse
- 3
AAC 135.095 - effect of exemption
on other legal encumbrances
- 3
AAC 135.110 - appeal
- 3
AAC 135.120 - definitions
- 3
AAC 136.010-.045 - senior
citizen and disabled veteran property tax equivalency payment
forms, rent verification, eligibility, eligible costs,
age verification, veteran's disability verification,
computation of payment
- 3
AAC 136.060 - definitions
- 3
AAC 138.010 - 020 farm and
agricultural land assessment and deferment application
forms, income verification
- 3
AAC 138.030 - appeal
- 3
AAC 138.040-.050 - municipal
maintenance of agricultural land records, confidentiality
- 3
AAC 138.060 - definitions
- 3
AAC 139.010 - state assessor
review of written complaint, review of municipal records
- 3
AAC 139.020 - state assessor
notification of error
- 3
AAC 139.030 - appeal of state
assessor's determination
- 3
AAC 139.900 - definitions
- 15
AAC 56.005-.010 - oil and
gas exploration production and pipeline property tax,
filing property statement with state, notice of assessment,
municipal
notification
- 15
AAC 56.015-.045 - standing
to appeal, appeal to state, appeal to assessment review
board, assessment review board hearing, supplementary
assessments
- 15
AAC 56.050-.065 - credit
and refund of oil & gas property tax, payment due
date,
- 15
AAC 56.070 - average per
capita full and true value determination and notification
- 15
AAC 56.075-.110 - taxable
oil & gas property, exploration, production, pipeline
property
- 15
AAC 56.120 - intangible
drilling expenses
- 15
AAC 56.130 - preservation
of municipal powers
Revised 7/29/03
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