Property Tax

Revised July 1, 2013

Introduction

Alaska is the only state in the United States where a large part of the land mass of the state is not subject to a property tax. Although property tax is the primary method of raising revenues for the majority of the larger municipalities in the state, smaller municipalities favor a sales tax. This is due primarily to the fact that the smaller incorporated areas lack a sufficient tax base to support the property tax. The unincorporated areas of the state do not have the legal authority to levy a tax.

Narrative

For those areas that do have a property tax, it must be assessed and taxed as authorized by AS 29.45.010 - .600. All property is taxable unless specifically exempted by law. Property required to be exempt from the property tax includes property owned by local, state, and federal governments, except that a private leasehold, contract, or other interest in that property, including the use of that property by an individual, company, or corporation, is taxable to the extent of that interest. Other required exemptions include senior citizens and disabled veterans, as well as property used for non-profit educational, religious, hospital, charitable and cemetery purposes. Required exemptions can be found in AS 29.45.030. Municipalities are given wide latitude to exempt all or some categories of personal property as well as other types or uses of property. These optional exemptions can be found in AS 29.45.050.

Property is required to be valued at market value each and every year as of January 1. Reinspection of property is to be made in accordance with a resolution or an ordinance of the local governing body but the inspection cycle should not exceed more than six (6) years.

Frequently Asked Questions

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Applicable Laws

State of Alaska Constitution
  • Article X, Section 1 - provision for maximum local self government and non-duplication of taxing jurisdictions
  • Article X, Section 2 - dedication of taxing powers to boroughs and cities only
  • 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 IX, Section 6 - public purpose use of tax revenue
  • Article X, Section 1 - provision for maximum local self government and non-duplication of taxing jurisdictions
Alaska Statutes
  • AS 14.17.510 (see Current Alaska Statutes) - assistance to school districts and municipalities in determining full and true value
  • 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 29.25.030 - prohibition against levying taxes by emergency ordinance
  • AS 29.35.010 - General powers and duties of municipality, authorization to levy tax, enforce ordinances
  • AS 29.35.170 - Assessment and collection of tax, borough collection of city tax
  • 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 conservation easement
  • AS 29.45.065 - Assessment of private airports open for public use.
  • AS 29.45.070 - Mobil 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

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  • 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, sworn statement, notice, equalization hearing, deadline for determining rate and mailing statements
  • AS 29.45.240 - Establishment of levy and determination of rate, ordinance and resolution requirement
  • AS 29.45.250 - Rates of penalty and interest, limitation on rate, interest accrual
  • 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 44.33.020(17) (see Current Alaska Statutes) - Commerce assistance on valuation, assessment, and taxation; notification of errors
  • 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 - taxes levied are in place 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

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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 56.00-.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