Chapter 4.15 REAL AND PERSONAL PROPERTY TAX

The city shall assess, levy and collect real and personal property taxes pursuant to the provisions of AS 29.45.010 through AS 29.45.500 and this chapter. (Ord. 01-12 § 1 (part), 2001.)

4.15.020 Property subject to taxation, rate, council resolution.

A. All real and personal property not expressly exempted by the city or otherwise assessed by this title shall be subject to annual taxation at its full and true value as of January 1st of the assessment year.

B. The rate of levy of tax, the date of equalization of the tax, and the date when the taxes shall become delinquent shall be fixed before June 15th of each year by resolution of the council.

C. The rate of levy tax shall not exceed three percent of the assessed value of the property in the municipality; provided, however, that pursuant to AS 29.45.100 this limitation shall not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. (Ord. 01-12 § 1 (part), 2001.)

4.15.030 Exemptions.

A. Property exempted from taxation shall be those items cited at AS 29.45.030, including rental household and office furniture.

B. Snowmobiles and three, four, or six wheel all terrain vehicles (not to exceed manufactured dry weight of one thousand pounds) shall be exempted from personal property taxation.

C. Recreational boats and all outboard motors shall be exempted from personal property taxation. For purposes of this exemption “recreational boats” means watercraft used or capable of being used as a means of transportation on water and used exclusively for purposes other than commercial purposes and which are otherwise exempt from taxation under this section.

“Commercial purposes” means activities for which a person receives direct monetary compensation or activities for which a person receives no direct monetary compensation, but that are incidental to and done in furtherance of the person’s business. The following boats are not exempt from personal property taxation under this section:

1. Boats used for commercial purposes;

2. Boats required to display a commercial operator permit under state law or regulation;

3. Fishing vessels required to display a number plate by AS 16.05.520(A) or any successor state law or regulation;

4. Boats for which a commercial vessel license is required under state law;

5. Boats owned or operated by any time during the preceding calendar year for the purpose of the taking, fishing for, or possession of fish, shellfish, or other fishery resources with the intent of disposing of them for profit, or by sale, barter, trade, or in commercial channels regardless of whether the boat was actually used for this purpose;

6. Boats for which a vessel entry permit is required; and

7. Boats operated at any time during the preceding calendar year for hire. (Ord. 01-12 § 1 (part), 2001; Ord. 08-02 § 3, 2008.)

4.15.040 Boats and vessels.

For the purposes of assessing, levying, and collecting taxes, boats and vessels used for commercial purposes shall be considered personal property and valuation shall be determined on an assessed valuation prepared by the city assessor. (Ord. 01-12 § 1 (part), 2001; Ord. 08-02 § 4, 2008.)

4.15.045 Motor vehicles.

Motor vehicles, as specified in AS 28.10.421, are subject to a city registration tax as provided by AS 28.10.431, subject to any exemptions required by the state. The tax shall be levied, collected, enforced and otherwise administered by the state as provided by AS 28.10.431(c). The registration tax is in lieu of all municipal use taxes and ad valorem taxes on motor vehicles subject to the tax. (Ord. 01-12 § 1 (part), 2001.)

4.15.050 Mobile homes.

For the purpose of assessing, levying, and collecting taxes, all mobile homes and similar property are classified as real property. (Ord. 01-12 § 1 (part), 2001; Ord. 08-04 § 2, 2008.)

4.15.051 Container vans.

For the purpose of assessing, levying, and collecting taxes, all container vans and similar property are classified as real property. (Ord. 08-01 § 2, 2008.)

4.15.055 Scheduled air carriers.

A. Any aircraft which is based outside of the city and is operated by a scheduled air carrier shall be assessed in proportion to the number of landings by that aircraft in the city. This value shall be determined by the following formula:

Assessed value = (market value/17,520) × total landings

For purposes of determining the assessed value of the aircraft, the assessor shall use the fair market value of the aircraft as of January 1st of the current tax year, and shall use the total number of landings in the city by the aircraft in the previous tax year.

B. It shall be the responsibility of the air carrier to provide the city with a return documenting the total landings for each aircraft. In the event the air carrier fails to provide such documentation, the assessor shall assess the aircraft based on its full value as of January 1st of the tax year.

C. For the purpose of this section:

1. “Scheduled air carrier” shall mean any certified air carrier which maintains a regular schedule of flights to and from the city.

2. An aircraft is “based outside of the city” if the airport at which the aircraft is usually based, as indicated by that aircraft’s registration, lies outside the city limits, unless the city has reason to believe that the aircraft is in fact based within the city limits. (Ord. 01-12 § 1 (part), 2001.)

4.15.060 Business inventories.

Business inventories shall be assessed based on the year end method. Defined as inventory in place at the end of the prior calendar year. (Ord. 01-12 § 1 (part), 2001; Ord. 10-05 § 2, 2010.)

4.15.070 Assessment roll and notice—Assessor to prepare and mail.

A. Annually, the assessor shall prepare the assessment roll pursuant to AS 29.45.160. The roll shall be prepared in duplicate and shall include particulars on delinquent taxes owing by any persons.

B. The assessor shall mail each person named in the roll a notice of assessment by March 15th or the next business day should the fifteenth fall on a weekend or holiday, pursuant to the provisions of AS 29.45.170.

C. Corrections to the assessment notice may be made pursuant to AS 29.45.180. (Ord. 01-12 § 1 (part), 2001: Ord. 09-03 § 2, 2009.)

4.15.080 Personal property returns.

A. Every person with personal property whose total combined value is greater than ten thousand dollars shall submit to the city a personal property return, postmarked on or before the first business day in February, of any property owned by him/her or in which he/she has an interest, and of the property held or controlled by him/her in a representative capacity, in the manner prescribed in this chapter, which return shall be based on property values existing as of January 1st of the year in which the return is made, or, in the case of business inventories, values shall be computed on the year end method. Commercial boats and vessels are not included in figuring whether the property owner has more than ten thousand dollars in personal property, but must be reported annually on the personal property assessment return. The person making the return in every case shall state the address to which all notices required to be given to him/her under this chapter may be mailed or delivered. The return shall show the nature, quantity, description, amount and value of all personal property, and the place where the property is situated. The return shall be in such form and include such additional information as the assessor may prescribe, and shall be signed and verified under oath by the person liable or his/her or its authorized agent or representative.

B. The assessor may, by notice in writing to any person by whom a return has been made, require from him/her further return containing additional details and more explicit particulars, and upon receipt of the notice, that person shall comply fully with its requirements within thirty days.

C. Total combined value for the purpose of this section shall include all personal property except:

1. Commercial boats and vessels assessed on a valuation under Section 4.15.040; and

2. Personal property exempted from tax under Section 4.15.030. (Ord. 01-12 § 1 (part), 2001; Ord. 08-02 §§ 2, 5, 2008; Ord. 11-08 § 1, 2011.)

4.15.090 Assessor’s right to investigate.

The assessor may personally examine and investigate taxable property pursuant to AS 29.45.130. (Ord. 01-12 § 1 (part), 2001.)

4.15.100 Violations.

For failing to file a tax statement or filing a false statement in an attempt to evade taxation, the city may impose upon the property owner a filing fee of one hundred dollars. When filing late, a fee of fifty dollars will be added. Any person subject to this penalty shall also pay a surcharge required to be imposed under AS 12.55.039. (Ord. 01-12 § 1 (part), 2001.)

4.15.110 Posting required.

When valuation notices have been mailed, the assessor shall cause notice that the assessment rolls have been completed to be posted at two public places for a period of two weeks. Such notice shall also state when and where the equalization hearings shall be held and that an appeal may be taken to the board of equalization upon the filing of notice in writing with the board specifying the grounds of the appeal. (Ord. 01-12 § 1 (part), 2001.)

4.15.120 Membership and procedures of board of equalization.

A. Membership—Duties.

1. Membership. The board of equalization shall be composed of three city council members and the mayor, who will preside. Members shall not be in default with the city for taxes.

2. Duties. The board may determine equalization on properties brought before the board by appellants or by one or more members of the board. The board may alter an assessment of a lot only pursuant to an appeal filed as to the particular lot.

B. Duties of Municipal Assessor. The municipal assessor shall furnish the board of equalization with copies of the appellant’s appeal and a short narrative of the assessor’s position. The assessor shall certify that material furnished to the board under Section 4.15.125 is true and correct, and such material shall be considered as part of the official testimony the board may hear. The assessor or his representative may supplement the record by additional testimony, documentation and exhibits in accordance with subsection (D)(7) of this section.

C. Quorum and Voting.

1. Quorum. A quorum shall consist of three members.

2. Voting. The granting of any appeal or part thereof shall require the concurring vote of all board members. Any appeal or part thereof that is not granted by the board may be presented to the city council by the second meeting in May.

D. Conduct of Hearings—Decisions. Except as otherwise provided in this chapter, hearings shall be conducted by the board in accordance with Robert’s Rules of Order, Newly Revised, subject to the following standards:

1. Record. The city clerk shall keep verbatim stenographic records or electronic recordings of the board’s proceedings, showing the vote of each member on every question and all of the evidence presented. The city clerk shall prepare written minutes for all board proceedings and the chairperson of the board and the city clerk shall sign such minutes.

2. Counsel. All parties may be represented by counsel during hearings before the board. The municipal attorney may offer legal counsel to the board in the course of its proceedings.

3. Case Number. Every appeal shall be assigned a case number which shall be read into the record along with the name of the appellant before the hearing on that appeal commences.

4. Burden of Proof. The burden of proof rests with the appellant. The only grounds for adjustment of an assessment are unequal, excessive, improper or under valuation based on the facts that are stated in a valid written appeal or provided at the appeal hearings in accordance with subsection (D)(7) of this section. If the valuation is found to be too low, the board of equalization may raise the assessment. The municipality shall make available to the appellant all reasonably pertinent documents requested for presentation of the appeal.

5. Rules of Evidence. The board shall not be restricted by the formal rules of evidence; however, the chairperson may exclude evidence irrelevant to the issues appealed. Hearsay evidence may be considered provided that there are adequate guarantees of its trustworthiness and that it is more probative on the point for which it is offered than any other evidence which the proponent can procure by reasonable efforts.

6. Order of Presentation. The appellant may present his appeal in person, in writing, or by authorized representative and shall present his argument first. Following the appellant, the assessor shall present the municipality’s argument. The appellant may, at the discretion of the chairperson, make rebuttal presentations directed solely to the issues raised by the assessor. The municipal attorney may question the appellant or the assessor on matters relating to the appeal. The members of the board may ask questions, through the chairperson, of either the appellant or the assessor at any time during the hearing. After both the appellant and the assessor have presented their arguments, each may question the other through the chairperson.

7. Witnesses and Exhibits. The appellant and the assessor may offer oral testimony of witnesses and documentary evidence during the hearing. Any documents presented to the board by either party must be provided to the opposing party at least seven days before the hearing. Documents to be submitted as evidence to the board must be filed with the city clerk no later than seven days before the board hearing to be admitted. All testimony before the board shall be under oath.

8. Decisions. At the conclusion of the hearing the boards shall determine whether the assessment is proper. The board shall issue findings of fact and conclusions of law clearly stating the grounds upon which the board relied to reach its decision.

9. Certification. The board shall certify its decision for an appeal to the assessor within seven days following its issuance.

10. Approval of Value Agreed Upon Between Assessor and Appellant. After an appeal has been filed to the board of equalization, the assessor will prepare a memorandum to the board of equalization for any new value which has been tentatively agreed to by the assessor and appellant, requesting the approval of the new value. If the board of equalization does not approve the value, the assessor shall schedule the appeal for a hearing and the city clerk shall properly notify the appellant.

F. Appeal to Superior Court. The appellant or the assessor may appeal a decision of the board to the superior court within thirty days in accordance with the rules of appellate procedure of the state. (Ord. 01-12 § 1 (part), 2001.)

4.15.125 Appeals to board of equalization.

A. A person whose name appears on the assessment roll or his agent or assigns may appeal to the board of equalization for relief from an alleged error in valuation.

B. No appeal may be taken unless the applicant files with the city clerk written notice of appeal specifying grounds for such appeal within thirty days from the date the assessment notice was mailed.

C. The city clerk shall acknowledge the written appeal by sending the appellant a notice, and notify the appellant by mail of the time and place for the hearing before the board and assign a case number to the appeal.

D. A taxpayer who requests to appeal his valuation after the thirty-day filing period has closed shall file a letter with the city clerk stating the reasons why the taxpayer was unable to comply within the thirty-day period. The board of equalization shall consider each letter. The board’s determination shall be based on the letter and any supporting documents. A taxpayer may not make an oral presentation at this hearing. The board shall interpret the term “unable to comply” as meaning that a taxpayer must demonstrate compelling reasons or circumstances which would prevent a reasonable person under the circumstances from filing an appeal. If the request is granted, the taxpayer shall have thirty days from the date of notification by the city clerk to file an appeal. If the request is denied, the city clerk shall notify the taxpayer of the board’s decision. (Ord. 01-12 § 1 (part), 2001.)

4.15.130 Assessment roll—Appeal and hearing.

A. Pursuant to AS 29.45.190, a person whose name appears on the assessment roll or the agent or assigns of that person may appeal to the board of equalization for relief from an alleged error in valuation not adjusted by the assessor to the taxpayer’s satisfaction. In addition to the appeal procedures set forth therein, whenever it appears to the board that there are overcharges or errors or invalidities in the assessment roll, or in any of the proceedings leading up to or subsequent to the preparation of the roll, and there is no appeal before the board by which the same may be dealt with, or where the name of any person is ordered by the board to be entered on the assessment roll, by way of addition or substitution, for the purpose of assessment, the board shall cause notice of assessment to be mailed to that person or his agent giving him a least thirty days from the date of such mailing within which to appeal to the board against the assessment.

B. In compliance with the provisions of AS 29.45.210, at the time appointed for the hearing of the appeal or as soon thereafter as the appeal may be heard, the board shall hear the appellant, the assessor, other parties to the appeal and their witnesses, and consider the testimony and evidence adduced, and shall determine the matters in question on the merits and render its decision accordingly. If any party to whom notice was mailed, as above set forth, fails to appear, the board may proceed with the hearing in his/her absence. The burden of proof in all cases shall be upon the party appealing. The board shall from time to time enter in the appeal record its decision upon appeals brought before it, and shall certify to the same. (Ord. 01-12 § 1 (part), 2001.)

4.15.140 Appeal record.

The clerk shall be ex officio clerk of the board of equalization and shall record in the minutes of the meeting all proceedings before the board and the names of all persons protesting assessments. All changes, revisions, corrections, and orders relating to claims or adjustments and final decisions shall be recorded in a record to be kept by the clerk and to be known as the appeal record. Within three days following the final hearings of the board, the clerk shall transmit to the assessor all corrections, revisions, or changes authorized and approved by the board and shall certify that the changes so reported are as approved by the board of equalization. Appeals to the board of equalization determination may be made to the superior court as provided in AS 29.45.210. (Ord. 01-12 § 1 (part), 2001.)

4.15.150 Assessment roll—Changes/supplementary roll.

A. Prior to the time of the board of equalization hearing, the assessor may correct any error or supply any omission made or arising in the preparation of the assessment roll. It shall be the duty of every person receiving a notice of assessment to advise the assessor of any error or omission observed in the assessment of his/her property in order that a correction may be entered.

B. Following the board of equalization hearing, the assessor shall enter the changes, so certified, upon his records, and no assessed valuations shall thereafter be changed. The assessor shall complete the annual assessment roll, at a time to be determined by the board, which shall be based on values as of January 1st immediately preceding or, in the case of business inventories, pursuant to Section 4.15.060 and shall certify the same.

C. Such supplementary assessment rolls shall be prepared and certified as may be necessary or expedient; provided, however, that the date taxes are due and delinquent shall be the same as for property listed on the original roll. (Ord. 01-12 § 1 (part), 2001.)

4.15.160 Assessment—Delivery to council, resolution, tax levy.

A. When the final assessment records have been completed by the assessor as herein provided, the assessor shall deliver to the council a statement of the total assessed valuation of all real and personal property within the city.

B. Every assessment roll as completed and certified by the assessor, and as corrected and amended by him/her from time to time in conformity with this chapter and the decisions of the council shall, except insofar as the same may be further amended as a result of an appeal to the court as provided by this chapter, be valid and binding on all persons, notwithstanding any defect, error, omission or invalidity existing in the assessment roll or any part thereof; and notwithstanding any proceedings pertaining thereto.

C. Upon receipt of the assessment roll, as amended or supplemented, the city council shall, by resolution, fix the rate of tax levy, designate the number of mills upon each dollar of assessed real and personal property, levy the tax, and provide the dates when payments are due and delinquent. Unless provided otherwise, the due dates are as follows: The first payment of property taxes is due to be paid in person or postmarked on or before the first business day in November. Should the first one-half of the total amount due not be paid on or before the payment due date, the entire amount of taxes owed shall immediately become due and payable. The second payment and final payment of property taxes is due to be paid in person or postmarked on or before the first business day in December.

D. A payment will not be considered delinquent if postmarked by the United States Post Office prior to midnight on the payment dates. The postmarked date on payments received by mail shall serve to establish the date received. (Ord. 01-12 § 1 (part), 2001; Ord. 10-01 §§ 2, 3, 2010.)

4.15.170 Assessor to mail tax statements.

Following adoption of the council resolution provided in AS 14.15.160 and by July 1st, the assessor shall mail tax statements, setting out the levy and the dates when taxes are due and delinquent, and the penalties and interest. (Ord. 01-12 § 1 (part), 2001.)

4.15.180 Penalties and interest.

A. A penalty of ten percent of the tax due plus any surcharge required to be imposed under AS 12.55.039 shall be added to all delinquent taxes, and interest of six percent per year shall accrue on unpaid taxes, not including penalty from the date due until paid in full.

B. Taxpayers failing to file a business/personal property assessment return in person or postmarked on or before the first business day in February will be charged a late filing fee of fifty dollars. Taxpayers failing to file a business/personal property assessment return postmarked on or before the first business day in March will be charged a force file fee of one hundred dollars but will not be charged a late filing fee. (Ord. 01-12 § 1 (part), 2001; Ord. 10-02 § 2, 2010; Ord. 10-10 § 2, 2010.)

4.15.185 Disaster declaration.

Upon declaration of the city council of an economic disaster in any year a taxpayer shall not be required to pay the penalty for late payment of real or personal property taxes, shall not be subject to force filing fees for personal property taxes under Section 4.15.100 and shall be afforded a one-half reduction in interest owed under Section 4.15.180 for taxes due for real or personal property during the calendar year that the economic disaster declaration is made; provided that, prior to October 30th of that year or one month after the economic disaster declaration is made, whichever is later, the taxpayer enters into an agreement with the city on forms provided by the city to pay the tax and interest due to the city in quarterly or more frequent installments. If a taxpayer fails to pay two or more payments as agreed under any such agreement, the full penalty, force filing fees and interest which would have accrued under Section 4.15.180 shall be due and owing to the city immediately after the second missed payment as if no payment had been made. For the year 2001, taxpayers may apply for the waiver of penalty, force filing fees and for a reduction in interest for payment of real and personal property taxes due for 2001 under this section on or before December 31, 2001. (Ord. 01-12 § 1 (part), 2001.)

4.15.190 Enforcement of tax liens.

The city shall enforce tax liens pursuant to the provisions of Sections 4.15.200 through 4.15.230 and AS 29.45.290 through AS 29.45.500. (Ord. 01-12 § 1 (part), 2001.)

4.15.200 Foreclosure list.

A. The clerk shall, after taxes have become delinquent and due prior to December 31st of each year, make up a roll of all property then subject to foreclosure and present the list to the city council. The city council shall direct that the city:

1. Annually present a petition for judgment and a certified copy of the foreclosure list for the previous year’s delinquent taxes in the Superior Court for judgment;

2. Publish the foreclosure list for four consecutive weeks in a newspaper of general circulation distributed in the city, or if there is no newspaper of general circulation distributed in the city, post the list at three public places for at least thirty days;

3. Within ten days after the first publication or posting, mail to the last known owner of each property as the owner’s name and address appear on the list a notice advising of the foreclosure proceeding, in which a petition for judgment of foreclosure has been filed, and describing the property and the amount due as stated on the list.

B. The list shall be arranged in alphabetical order; as to the last name; the last known owner; the property description as stated on the assessment roll; year and amount of delinquency; penalty and interest due; costs, which include publication and attorney fees; a statement that the list is available for public inspection at the clerk’s office; and a statement that the list has been presented to the Superior Court with a petition for judgment and decree.

C. Completion of the requirements of subsection A of this section constitutes, and has the same force and effect, as the filing of an individual and separate complaint and service of summons to foreclose a lien against each property described on the foreclosure list. (Ord. 01-12 § 1 (part), 2001.)

4.15.210 Clearing delinquencies.

During the publication or posting of the foreclosure list, and up to the time of transfer to the municipality, a person may pay the taxes, together with the penalty, interest, and all costs such as publication, attorney fees and any other associated costs of foreclosure. The collector shall note payment on the foreclosure list. (Ord. 01-12 § 1 (part), 2001.)

4.15.220 List to lien holder.

A holder of a mortgage or other lien on real property may request the clerk to send by certified mail notice of a foreclosure list that includes the real property. (Ord. 01-12 § 1 (part), 2001.)

4.15.230 Real and personal property—Collection, delinquency, remedies.

A. A Demand for Payment of Personal Property Taxes. Prior to December 31st of each year the city clerk will work with the collections person and together shall mail, postage fully paid, to all persons whose personal property taxes are delinquent, demand payment of the taxes plus penalty and interest. This shall be the date of mailing of the notice of tax due referred to in subsections (C) (2) (a) and (b) of this section.

B. Methods of Collection of Personal Property Taxes. Personal property taxes together with the penalty and interest, may be collected, after the same become due, either by distraint or in a personal action brought in the name of the city against such owner in the courts of the state, or both such methods of collection may be used, in the discretion of the council. Neither of such methods shall be deemed exclusive remedies.

C. Collection by Distraint and Sale.

1. Persons Subject to Enforcement. If, at any time a taxpayer is more than six months delinquent in any of the sales or personal property taxes levied by the city due the city, he/she shall be subject to the enforcement procedures provided in this chapter, which are in addition to any other enforcement procedures already provided for and is not exclusive.

2. Distraint. The lien of personal property taxes and other nonreal taxes may be enforced by distraint and sale of the personal property of the person assessed. The procedure shall be as follows:

a. Demand shall be made of the person assessed by sending him/her a notice of the amount of tax due, the penalty and interest and the total and notice to the effect that if the taxes and all penalty and interest are not paid by a date certain which date shall not be less than thirty days from the date of mailing, that his/her personal property shall be subject to distraint and sale. The notice shall be sent by certified mail, return receipt requested or may be served in person with return of the person making service. The notice shall be signed by the city clerk.

b. If no payment is made within the time specified or any extension agreed to in writing between the parties, the city clerk shall issue a warrant directed to an enforcement officer of the city to be designated by the city manager, direct him to seize, levy upon, distraint, and sell by public auction such personal property of the person assessed as the tax may have been levied upon, and that if the same is not sufficient to satisfy the tax, penalty, interest, costs, and expenses of sale, such warrant may authorize seizure, levy, distraint and sale of such other personal property of the person against whom the tax was assessed as may be sufficient to satisfy such tax, penalty, interest, costs and expenses of sale.

i. No sale of any property may be made without at least fifteen days’ notice being given by publishing a notice of the sale at least two times in a newspaper of general circulation within the city, or if there is no such newspaper, by posting within the times stated a notice in seven public places within the city, and by mailing by certified first class prepaid mail a copy of the notice to the person assessed.

ii. Sale. The sale of such property shall be made at public auction and such personal property shall be sold to the highest bidder for cash. All sales of personal property shall be made at a time of day to be fixed by the city clerk in such notice, and the same shall be fixed between the hours of ten a.m. and five p.m. of the day of the sale, and the sale may be adjourned by the city clerk from day to day for want of purchasers of sufficient bids, or if for any valid reason the city clerk is prevented from attending at the time and place set for the sale, the sale may be adjourned and continued from day to day if necessary until all of such personal property has been sold to pay the costs and expenses provided in this chapter, and the tax, penalty and interest in full.

iii. From the proceeds of the sale which shall convey all the right title and interest of the person assessed, shall be paid, in the following order: the actual expenses of sale, tax, penalty, interest, and other costs including attorney’s fees.

iv. Schedule of Costs. The following shall be the schedule of costs and attorney’s fees:

(A) If redemption is made prior to sale:

(1) Actual costs of seizing and preserving the property;

(2) Actual costs of publication and giving notice;

(3) Attorney’s fees in the amount of twenty percent of the first one hundred dollars, but with a minimum of ten dollars, fifteen percent of the next five hundred dollars and ten percent thereafter.

(B) If no redemption is made before the property is sold:

(1) All costs stated above plus any actual accruing costs;

(2) Attorney’s fees in addition to those stated of fifteen percent of the first one hundred dollars but with a minimum of ten dollars, five percent of the balance.

v. Any remaining sums shall be returned to the person assessed, or if not claimed within six months shall become the property of the city, and sale is forever barred.

vi. The city clerk shall apply the proceeds of the sale in the manner set forth, and shall keep a record of all such sales and all such proceedings, and shall keep on file the returns of the city clerk relating thereto, and in all cases of sale of personal property, the city clerk shall, if requested, give the purchaser a bill of sale on behalf of the city under his/her hand.

D. General Foreclosure. The city shall bring one general foreclosure proceeding in rem against the property included in the foreclosure list. If the owner is unknown, the property is proceeded against as belonging to “unknown owner.” (Ord. 01-12 § 1 (part), 2001.)

4.15.240 Answer and objection.

A person having an interest in a lot on the foreclosure list may file and answer within thirty days after the date of last publication, specifying the person’s objection. The court shall make its decision in summary proceedings. The foreclosure list is prima facie evidence that the assessment and levy of the tax is valid and that the tax is unpaid. (Ord. 01-12 § 1 (part), 2001.)

4.15.250 Judgment.

The court shall in a proper case give judgment and decree that the tax liens be foreclosed. It is a separate judgment against each lot and a lien on each lot. (Ord. 01-12 § 1 (part), 2001.)

4.15.260 Transfer and appeal.

A. Foreclosed properties are transferred to the city for the lien amount. When answers are filed the court may enter judgment against and order the transfer to the city of all other properties on the list pending determination of the matters in controversy. The court shall hear and determine the issues raised by the complaint and answers in the same manner and under the same rules as it hears and determines other actions.

B. The court clerk shall deliver a certified copy of the judgment and decree to the city clerk. The certified judgment and decree constitutes a transfer to the city.

C. The judgment and decree stops objections to it that could have been presented before judgment and decree. Appeal from a judgment and decree of foreclosure, or from a final order in the proceeding, may be taken in a manner provided for appeals in civil actions. (Ord. 01-12 § 1 (part), 2001.)

4.15.270 Redemption period.

Properties transferred to the municipality are held by the city for at least one year. During the redemption period a party having an interest in the property may redeem it by paying the lien amount plus penalties, interest and costs, including all costs incurred under AS 29.45.440(a). Property redeemed is subject to all accrued taxes, assessments, liens and claims as though it had continued in private ownership. Only the amount applicable under the judgment and decree must be paid in order to redeem the property. (Ord. 01-12 § 1 (part), 2001.)

4.15.280 Effect.

Receipt of redemption money by the city releases the judgment obtained under AS 29.45.380. The clerk or the clerk’s designee shall record the redemption and issue a certificate containing a property description, the redemption amount, and the dates of judgment and decree of foreclosure. The clerk or the clerk’s designee shall collect the recording fee at the time of redemption and shall file the certificate with the record as part of the judgment roll. (Ord. 01-12 § 1 (part), 2001.)

4.15.290 Additional liens.

If a property included in a foreclosure list is removed after payment of delinquencies or redemption by another lien holder, the payment represented by receipt for payment constitutes an additional lien on the property, collectible by the lien holder in the same manner as the original lien. (Amended during 3/02 supplement.)

4.15.300 Possession during redemption period.

Foreclosure does not affect the former owner’s right to possession during the redemption period. If waste is committed by the former owner, or by anyone acting under the permission or control of the former owner, the city may declare an immediate forfeiture of the right to possession. (Ord. 01-12 § 1 (part), 2001.)

4.15.310 Expiration.

A. At least thirty days before the expiration of the redemption period the clerk or the clerk’s designee shall publish a redemption period expiration notice. The notice must contain the date of judgment, the date of expiration of the period of redemption, and a warning that all properties ordered sold under the judgment, unless redeemed, shall be deeded to the city immediately on expiration of the period of redemption, and that every right or interest of a person in the properties will be forfeited forever to the city. The notice appears once a week for four consecutive weeks in a newspaper of general circulation distributed in the city. If there is no newspaper of general circulation distributed in the city, the notice shall be posted in three public places for at least four consecutive weeks. The clerk shall send a copy of the notice by certified mail to each record owner of property against which a judgment of foreclosure has been taken, and if the assessed value of the property is more than ten thousand dollars, to all holders of mortgages or other liens of record on the property. The notice shall be mailed within five days after the first publication. The mailing shall be sufficient if mailed to the property owner and to the holder of a mortgage or recorded lien at the last address of record.

B. The right of redemption expires thirty days after the date of the first notice publication.

C. Costs incurred in the determination of holders of mortgages and other liens, if recorded, and costs of notice publication incurred by the city under subsection A of this section, are a lien on the property and may be recovered by the city. (Ord. 01-12 § 1 (part), 2001.)

4.15.320 Deed to the city.

A. Unredeemed property in the city is deeded to the city, subject to the payment by the city of unpaid taxes and costs of foreclosure levied against the property before foreclosure. The deed shall be recorded in the recording district in which the property is located.

B. Conveyance gives the city clear title, except for prior recorded tax liens of the United States and the state.

C. A deed is invalid for irregularities, omissions or defects in the proceedings under this chapter, unless the former owner has been misled so as to be injured. Two years after the date of the deed, its validity is conclusively presumed, and a claim of the former owner or other person having an interest in the property is forever barred. (Ord. 01-12 § 1 (part), 2001.)

4.15.330 Disposition and sale of foreclosed property.

A. The city shall determine by ordinance whether foreclosed property deeded to the city shall be retained for a public purpose. The ordinance must contain the legal description of the property, the address or a general description of the property sufficient to provide the public with notice of its location, and the name of the last record owner of the property as the name appears on the assessment roll.

B. Tax-foreclosed property conveyed to the city by tax foreclosure and not required for a public purpose may be sold. Before the sale of tax-foreclosed property held for a public purpose, the city, by ordinance, shall determine that a public need does not exist. The ordinance must contain the information required under subsection A of this section.

C. The clerk or the clerk’s designee shall send a copy of the published notice of hearing of an ordinance to consider a determination required under subsection A or B of this section by certified mail to the former record owner of the property that is the subject of the ordinance. The notice shall be mailed within five days after its first publication and shall be sufficient if mailed to the last record owner of the property as the name appears on the assessment roll of the city.

D. Provisions of subsection C of this section do not apply with respect to property that has been held by the city for a period of more than ten years after the close of the redemption period. (Ord. 01-12 § 1 (part), 2001.)

4.15.340 Repurchase by record owner.

A. The record owner at the time of tax foreclosure of property acquired by the city, or the assigns of that record owner, may, within ten years and before the sale or contract of sale of the tax-foreclosed property by the city, repurchase the property. The city shall sell the property for the full amount applicable to the property under the judgment and decree plus: (1) interest not to exceed fifteen percent a year from the date of entry of the judgment of foreclosure to the date of repurchase; (2) delinquent taxes assessed and levied as though it had continued in private ownership; (3) costs of foreclosure and sale incurred by the city; and (4) costs of maintaining and managing the property incurred by the city, including insurance, repairs, association dues and management fees, that exceed amounts received by the city for the use of the property.

B. After adoption of an ordinance providing for the retention of tax-foreclosed property by the city for a public purpose, the right of the former record owner to repurchase the property ceases. (Ord. 01-12 § 1 (part), 2001.)

4.15.350 Proceeds of tax sale.

If tax-foreclosed real property that has been held by the city for less than ten years after the close of the redemption period and never designated for a public purpose is sold at a tax-foreclosures sale, the former record owner is entitled to the portion of the proceeds of the sale that exceeds the amount of unpaid taxes; the amount equal to taxes that would have been assessed and levied after foreclosure if the property had continued in private ownership; penalty, interest and costs to the city of foreclosing and selling the property; and costs to the city of the property. If the proceeds of the sale of tax-foreclosed property exceed the total of unpaid and delinquent taxes, penalty, interest and costs, the city shall provide the former owner of the property written notice advising of the amount of the excess and the manner in which a claim for the balance of the proceeds may be submitted. Notice is sufficient under this section if mailed to the former record owner at the last address of record of the former record owner. On presentation of a proper claim, the city shall remit the excess to the former record owner. A claim for the excess filed after six months of the date of sale is forever barred. (Ord. 01-12 § 1 (part), 2001.)

4.15.360 Refund of taxes.

A. If a taxpayer pays taxes under protest, the taxpayer may bring suit in the Superior Court against the city for recovery of the taxes. If judgment for recovery is given against the city, or if in the absence of suit, it becomes obvious to the governing body that judgment for recovery of the taxes would be obtained if legal proceedings were brought, the city shall refund the amount of the taxes to the taxpayer with interest at eight percent from the date of payment plus costs.

B. If, in payment of taxes legally imposed, a remittance by a taxpayer through error otherwise exceeds the amount due, and the city, on audit of the account in question, is satisfied that this is the case, the city shall refund the excess to the taxpayer with interest at eight percent from the date of payment. A claim for refund filed one year after the due date of the tax is forever barred.

C. The governing body may correct manifest clerical errors at any time. (Ord. 01-12 § 1 (part), 2001.)