Chapter 3.35
REAL PROPERTY TAX

Sections:

3.35.010    State law adopted.

3.35.020    Property subject to tax.

3.35.030    Definitions.

3.35.040    Method of assessment.

3.35.050    Board of equalization.

3.35.060    Final and supplemental assessment rolls.

3.35.070    Addresses – Responsibility of persons subject to taxation.

3.35.080    Real and personal property exempted from taxation.

3.35.090    Property tax billing.

3.35.100    Correction of errors.

3.35.110    City taxes.

3.35.120    Tax due dates and delinquency.

3.35.130    Exceptions.

3.35.140    Late payments – Penalty and interest.

3.35.150    Enforcement of tax liens on real property.

3.35.160    Preparation of the foreclosure list.

3.35.170    Publication of the foreclosure list.

3.35.180    Notice of foreclosure proceeding.

3.35.190    Clearing delinquencies before sale.

3.35.200    Notice of foreclosure list to lien holder.

3.35.210    Apportionment of costs.

3.35.220    Enforcement by personal action.

3.35.230    Foreclosure proceedings.

3.35.240    Effect of redemption.

3.35.250    Notice of expiration of redemption.

3.35.260    Deed to borough.

3.35.010 State law adopted.

The laws of the state of Alaska relating to the assessment and levy of taxes upon real and personal property within the boundaries of first- and second-class boroughs and first-class cities are expressly incorporated in this chapter as if set forth in full herein. [Prior code Ch. 3 subch. 1 §1. Formerly §3.20.010].

3.35.020 Property subject to tax.

All real and personal property within the borough and not expressly exempted by the borough through ordinance shall be subject to annual taxation at a rate not to exceed three percent of its full and true value in money as assessed on the first day of January of the assessment year, the tax to be used for borough purposes and for such other purposes as are or may be authorized. [Ord. 84-16-O §1, 1984; prior code Ch. 3 subch. 1 §2. Formerly §3.20.020].

3.35.030 Definitions.

“Personal property” includes all other property, corporate real and incorporate real, not specifically included in “real property” and includes mobile homes, trailers, house trailers, trailer coaches, and camper trailers not attached to the land or connected to water, gas, electric, or sewage facilities.

“Real property” includes not only the land itself, whether laid out in lots or otherwise, but also all buildings, structures, improvements, fixtures of whatsoever kind thereon, and also possessory rights and privileges belonging to or in any way appertaining thereto; and the word “tract” includes all lands, pieces, or parcels of land which may be separately assessed, together with fixtures and improvements thereon. “Real property” also includes mobile homes, trailers, house trailers, double-wide-type mobile or modular homes, trailer coaches and similar property, used or intended to be used for residential, office, or commercial purposes and attached to the land or connected to water, gas, electric or sewage facilities except those mobile homes and house trailers which are held for sale by persons engaged in the business of selling mobile homes. [Ord. 77-38-O §1, 1977; Ord. 72-27-O §1, 1973; Ord. 69-36-O, 1969; prior code Ch. 3 subch. 1 §3. Formerly §3.20.030].

3.35.040 Method of assessment.

A. All taxable property must be assessed at its just and fair value as of the first day of January of the assessment year. All assessments shall be equal and uniform and based upon the actual value of the property assessed. The assessor shall complete the listing of the annual assessment roll of all real and personal property within the corporate limits of the borough before the first day of April of that assessment year. The listing of all taxable property may be made upon permanent separate ledger cards, which will be the combined assessment roll and tax ledger. Real property shall be assessed to the owner of record as shown on the records of the Kodiak district recorder; provided, however, that any other person having an interest in the property may be listed on the assessment records with the owner. The person in whose name any property is listed as owner thereof shall be conclusively presumed to be the legal owner of record for tax purposes. If the owner of the land is unknown, such land may be assessed to the unknown owner or unknown owners. No assessment shall be invalidated by a mistake, omission or error in the matter of the owner of real property assessed, if the property is correctly described, and it shall be the responsibility of the owners of the property to keep the assessor properly informed as to their current address and no assessment shall be invalidated if it is shown that a notice that taxes are due and payable has been sent to the last known address of the owner of record. The assessor may list real property located in any subdivision by lot and block or tract description, and unsubdivided property according to the land office, section and township survey description, or by giving the boundaries thereof, or by reference to the book and page of the records of the Kodiak district recorder where the description may be found, or by designation of tax lot number referring to a public record kept by the assessor of descriptions of real property, or in such other manner as to cause the description to be capable of being made certain. Initial letter, abbreviations, fractions and exponents to designate the township, range, section or part of a section, or the number of any lot or block or part thereof, or any distance, course, bearing, or direction may be employed in any such description of real property.

The assessor personally, or by any designated assistant, shall, after identifying himself, have the right to enter upon and inspect the premises of any person at reasonable times for the purpose of making an examination, evaluation or assessment of the real property. He shall have access to and may examine all property records involved, and any person shall, upon request, furnish to the assessor or his assistant every facility and assistance for the purpose of such examination, evaluation, or assessment.

B. Contents of Assessment Roll. The assessor shall prepare an annual assessment roll in duplicate upon which he shall enter the following particulars:

1. The names and last known addresses of all persons with property liable to assessment and taxation;

2. A description of all taxable property; and

3. The assessed value, quantity, or amount of said property.

C. Notice, Publication, and Correction of Assessment Roll.

1. The assessor shall give to every person named in the assessment roll a notice of assessment showing the assessed value of his property. On the back of each assessment notice shall be printed a brief summary of the information for the taxpayer; of the dates when the taxes are payable, delinquent and subject to interest and penalty; dates when the board will sit for equalization purposes; and any other particulars specified by the borough assembly. The assessment notice shall be directed to the person to whom it is to be given and shall be sufficiently given if it is mailed by first-class mail addressed to, or is delivered at, his address as last known by the assessor. If the address is not known to the assessor, the notice may be addressed to the person at the post office nearest to the place where the property is situated. The date on which the notice is mailed or delivered shall be deemed to be the date on which the notice is given for purposes of this chapter.

2. When valuation notices have been mailed, the assessor shall cause notice that the assessment rolls have been completed to be published in a newspaper of general circulation, published in the borough at least once each week for two successive weeks. If no newspaper of general circulation is published in the borough, the assessor shall have the notice posted at two public places for a period of two weeks. The notice shall state when and where the equalization hearings will be held.

3. The assessor may correct an error or supply an omission in the assessment roll at any time before the sitting of the board of equalization. Every person receiving a notice of assessment shall advise the assessor of any error or omission in the assessment of his property. [Ord. 82-33-O, 1982; Ord. 81-47-O, 1981; Ord. 71-4-O, 1971; prior code Ch. 3 subch. 1 §4A. Formerly §3.20.040].

3.35.050 Board of equalization.

A. Membership, Qualification, Duties, Terms.

1. Members. The board of equalization shall be composed of five persons, not assembly members, appointed by the assembly. At least one alternate member shall be appointed.

2. Qualifications. Members and alternate members should be appointed on the basis of their expertise in real and personal property appraisal, the real estate market, the personal property market, and other fields related to their functions as board members. Each member shall be a qualified voter of the borough and shall remain a resident of the borough while in office. Borough employees may be appointed to serve on the board of equalization unless they are employed by the finance or assessing departments.

3. Duties. The board may determine equalizations on properties brought before the board by appellants. It shall only hear appeals for relief from an alleged error in valuation on properties before the board by an appellant.

4. Terms of Office. Upon confirmation, members and alternate members shall serve for three years or until their successors are appointed and confirmed. Of the members initially appointed, two shall serve three-year terms, two shall serve two-year terms, and one shall serve a one-year term.

5. Hearing Dates. The board shall commence hearings on the first Monday in May, unless otherwise changed by resolution. Hearings will continue from day to day as established by the board and the borough clerk until all properly filed appeals have been heard.

B. Chairperson. The board annually shall elect a member to serve as its chairperson. The chairperson may call meetings of the board, shall exercise such control over meetings as to ensure the fair and orderly resolution of appeals, shall make rulings on the admissibility of evidence, and shall conduct the proceedings of the board in conformity with this chapter. A vice-chairperson shall also be selected to serve in the chairperson’s absence. If both are absent, the members present shall select a person to preside.

C. Appeals to the Board.

1. A person whose name appears on the assessment roll, or the authorized representative of that person, may appeal to the board for relief for an alleged error in valuation not adjusted by the assessor to the taxpayer’s satisfaction. The authorized representative shall be named by the property owner in writing to the assessor and board of equalization at the time of filing or no later than three days in advance of hearing. The time requirement for providing a representative in writing may be waived at the determination of the board during the hearing, if good cause is shown that may include, but not limited to, the following: stranded from Kodiak due to inclement weather, serious medical condition, serious family emergency, or death in the family.

2. The appellant shall, within 30 calendar days after the date of mailing of notice of assessment, submit to the assessor a written appeal specifying grounds for such appeal. The board shall prescribe the form in which written notices of appeal shall be made. Otherwise, the right of appeal ceases unless the board of equalization finds that the taxpayer was unable to comply within the 30-day appeal period and grants a hearing to the appellant.

3. The assessor shall notify the appellant by mail, and email if provided, of the time and place for the hearing and assign a docket number of appeal.

4. If parties to whom notice was mailed as provided herein fail to appear, the board may proceed with the hearing in their absence. All parties, their authorized representatives, and witnesses must appear in person at the hearing.

5. The assessor shall prepare for use by the board of equalization a summary of assessment data relating to each assessment that is appealed. This summary shall be provided to the board and made available to the appellant at least 10 calendar days before the hearing. Summary of assessment data for late-filed appeals granted by the board will be provided as soon as practicable.

6. A city in the borough may appeal an assessment to the borough board of equalization in the same manner as a taxpayer. Within five days after receipt of the appeal, the assessor shall notify the person whose property assessment is being appealed by the city.

7. A property owner who seeks to appeal the assessor’s valuation, after the 30-day filing period has closed, shall file a letter with the assessor stating the reasons why the property owner was unable to comply with the 30-day appeal period. The deadline to file a late-file request is on April 15th of the current assessment year. Should April 15th fall on a Saturday or Sunday, late filers shall have until 4:30 p.m. on the first Monday following to file their request.

On the next business day following the deadline to file a late-file request or as soon as is practicable, the board shall consider each letter and shall only consider reasons the appellant was unable to comply with the 30-day appeal period. It shall not consider evidence regarding property valuation. The appellant may not make an oral presentation at the hearing. The determination shall be based on the letter and supporting documents. The board shall interpret the term “unable to comply” as meaning that a property owner must demonstrate compelling reasons or circumstances which would prevent a reasonable person under the circumstances from filing an appeal in a timely manner during the 30-day appeal period.

If the late-file request is granted, the property owner shall have five calendar days from the decision of the board to file an appeal and submit to the assessor’s office all documentary evidence in their possession which they wish to be considered and which is relevant to the resolution of the appeal. If the late-file request is denied, the assessor shall notify the property owner of the board’s decision in writing.

D. Quorum and Voting.

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

2. Voting. The granting of any appeal or part thereof shall require the concurring vote of at least three board members. Any appeal or part thereof which is not granted by the board shall be considered denied.

E. Hearings, Procedures.

1. Record. The clerk is the ex officio clerk of the board and shall prepare the board’s minutes. The clerk shall keep electronic recordings of the board’s hearings per the borough retention schedule. The board of equalization summary certification will constitute the board’s minutes.

2. Counsel. All parties may be represented by counsel during hearings before the board. On procedural matters, the borough attorney may offer legal counsel to the board in the course of its proceedings. Upon the recommendation of the borough attorney, the board may retain legal counsel from another attorney for a particular matter.

3. Appeal Number. Every appeal shall be assigned a docket number which, along with the name of the appellant, shall be read into the record before the hearings on the appeal may commence.

4. Burden of Proof. The burden of proof rests with the appellant, who must convince the board by clear and convincing evidence that the assessment was unequal, excessive, improper, or undervalued based on the facts stated in a written appeal or proven at the appeal hearing in accordance with subsections (E)(5) and (7) of this section. If the valuation is found to be too low, the board may raise the assessment. The borough shall make available to the appellant all reasonably pertinent documents requested for presentation of the appeal, including but not limited to documents presented or requested by the board of equalization for presentation of the appeal in accordance with subsection (C)(5) of this section.

5. Rules of Evidence. Evidence shall only be presented by the appellant and the assessor or their authorized representative. 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 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. The appellant must submit to the assessor’s office by April 15th all documentary evidence in their possession which they wish to be considered and which is relevant to the resolution of the appeal. Should April 15th fall on a Saturday or Sunday, appellants shall have until 4:30 p.m. on the first Monday following to submit their evidence.

This evidence includes but is not limited to purchase and closing documents, appraisal reports, brokers’ opinion of value, engineers’ reports, estimates to repair, rent rolls, leases, and income and expense information. The board of equalization may in its discretion decline to accept documents offered at the hearing which should have been provided by April 15th. In exercising this discretion, the board shall consider the relevance and probative value of the documents which are under consideration, accepting those documents which in all fairness are necessary to a fair resolution of the appeal. Prior to the board meeting, the appellant and assessor may agree to an extension of time for the production of evidence.

6. Order of Presentation. The order of presentation is as follows:

a. The appellant shall present evidence and argument not to exceed five minutes.

b. Following the appellant, the assessor shall present the borough’s evidence and argument not to exceed five minutes.

c. The appellant may make a rebuttal presentation directed solely to the issues raised by the assessor not to exceed two minutes.

d. The assessor may address the rebuttal by the appellant not to exceed two minutes.

Each party shall be allowed a total of five minutes to present evidence and make oral argument. The time limits allotted include presentations from either the appellants or assessor’s authorized representatives, counsels, or witnesses. Additional time may be permitted by the board depending on the complexity of the case. The members of the board may ask questions, through the chairperson, of either the appellant or the assessor, authorized representatives, counsels, or witnesses at any time during the hearing. After both the appellant and the assessor have made their presentations, each may question the other through the chairperson. The chairperson may end the questioning and call for a motion from the other members.

7. Witnesses, Exhibits and Other Evidence. The appellant and the assessor may offer the oral testimony of witnesses and documentary evidence during the hearing. At the request of the appellant, evidence submitted pursuant to subsection (E)(5) of this section relating to the assessed valuation of property used in an income-producing commercial enterprise shall be confidential. The assessor and the appellant may stipulate to facts to be presented to the board, provided the assessor has received credible and reliable evidence to establish the facts.

The only exhibits that shall be admitted into the record at the hearing are those exhibits provided pursuant to subsection (E)(5) of this section. However, at the hearing, parties may use demonstrative or illustrative exhibits; provided, that all such exhibits are duplicates of exhibits or information provided to the board pursuant to subsection (E)(5) of this section. Additionally, witnesses may write on a board while orally testifying to illustrate their testimony. The limitation on the use of exhibits in this section shall not preclude the parties from presenting oral testimony at the hearing.

8. Decisions.

a. The assessor may recommend changes to the existing value during the hearing.

b. After the appellant and assessor have presented their cases, the hearing shall be closed by the chairperson, and no further evidence shall be offered or considered in deliberations unless a member of the board of equalization asks for additional information from either party. Both parties shall be given an equal opportunity to respond to any such requests for additional information.

c. The board may decide the appeal after the presentations, or it may defer a decision no later than 30 days after the hearing date. Final board action shall be taken by motions that set out specific findings of fact at the meeting and shall not be reconsidered, amended, or rescinded by the board. Only one motion may be on the floor at a time, and the board shall vote on the motions until its findings are established. The vote must be taken and entered in the permanent record of the proceedings. The motions available for the board are:

i. Motion to uphold the assessor’s valuation.

ii. Motion to reduce the assessment.

iii. Motion to increase the assessment.

iv. Motion to dismiss the appeal.

v. Motion to defer the decision.

vi. Or any other motion set out in Alaska Statutes and regulations governing board of equalization appeals.

d. No later than 30 days following the hearing, the board shall render a written decision which includes findings of fact based on evidence presented at the hearing clearly stating the grounds upon which the panel relied to reach its decision and advising all parties of their right to appeal the decision to superior court.

9. Certification. The board shall certify its actions to the assessor within seven days following its adjournment.

F. Further Appeals. Any appeal of a decision of the board shall be made to the superior court. No appeal of a board’s decision to the superior court may be taken unless the action is filed and the borough attorney is served with notice of such appeal within 30 days following the board’s decision. [Ord. FY2012-04 §4, 2011; Ord. FY2011-12 §2, 2011; Ord. 98-03 §2, 1998; Ord. 78-21-O §1, 1978. Formerly §3.20.050].

3.35.060 Final and supplemental assessment rolls.

A. After the hearing, the assessor shall, at the time fixed by the assembly, complete and certify the annual assessment roll. The assessment roll shall be based on values as of January 1st immediately preceding.

B. All taxes levied or collected shall be calculated, levied, and collected upon the assessed values entered in the assessment roll and certified by the assessor as correct, subject to the taxpayer’s rights of appeal, and to the corrections and amendments made in the rolls.

C. All duties imposed on the assessor with respect to the annual assessment roll and all provisions of this chapter relating to the assessment roll shall, as far as applicable, apply to the supplementary rolls.

D. The assessment roll as completed and certified by the assessor and as corrected and amended by him in conformity with this chapter and the decisions of the board are, except as amended as a result of an appeal to the court as provided herein, valid and binding on all persons, notwithstanding any defect, error, omission, or invalidity in the assessment roll or proceedings pertaining to the assessment roll.

E. When the final assessment records are completed by the assessor, the assessor shall deliver to the assembly a statement of the total assessed valuation of all real property in the borough. The assembly shall then fix the rate of tax levy and designate the number of mills upon each dollar of value of assessed taxable real property that shall be levied for borough purposes including the borough government, assessment, and collection of taxes, education, and planning and zoning, and shall levy the tax accordingly. The levies for school and municipal purposes shall be separately made and fixed, but the aggregate of them shall not exceed three percent of the assessed value of the property assessed.

F. At such time as the assessment function of property taxes has been accomplished, to include the appeal process to the board of review, the assessor will furnish the borough treasurer a copy of the certified assessment roll. [Ord. 82-7-O, 1982; Ord. 78-21-O §2, 1978. Formerly §3.20.060].

3.35.070 Addresses – Responsibility of persons subject to taxation.

It shall be the responsibility of every person who owns or controls real or personal property subject to tax by the municipality to file with the office of the assessor the address where he will receive notices, bills, or other correspondence regarding taxation. No person shall be excused from paying taxes or penalties thereon for the reason that he did not receive a tax notice, bill, or any other correspondence due to an improper mailing of assessment notice, billings, or other correspondence. [Ord. 78-21-O §4, 1978. Formerly §3.20.062].

3.35.080 Real and personal property exempted from taxation.

The following described properties shall be exempt from any and all taxation otherwise imposed under the foregoing sections:

A. All property belonging to the United States of America, the state of Alaska, the borough, the city of Kodiak, or any other incorporated city lying and being within the boundaries of the borough;

B. All property used exclusively for religious, educational, or charitable purposes, such property used for religious purposes to be deemed to include the residences of a pastor, priest, or minister of such religious organization and to further include all other property of such organization not used for business, rent, or profit. Property of any religious, educational, or charitable organization from which the organization derives any rentals or profits shall not be exempt. Unimproved or vacant real property of any such organization which is not currently used for religious, educational, or charitable purposes shall be deemed to be property held or used for profit, unless by deed restriction or otherwise the real property has been effectually dedicated to future use for religious, educational, or charitable purposes only and cannot be sold or used for any other purposes;

C. The property of any organization which is not organized for business purposes and whose membership is composed entirely of veterans of any wars of the United States, as recognized and chartered by the Congress of the United States, and the property of the auxiliary of any such organization. Property of any such veteran’s organization or auxiliary from which the organization derives any rentals or profits shall not be exempt;

D. To be eligible for an exemption provided by AS 29.45.030(e), the individual applying for the exemption must also meet requirements under one of the following two subsections:

1. The individual shall be eligible for a permanent fund dividend under AS 43.23.005 for that same year or for the immediately preceding year; or

2. If the individual has not applied or does not apply for one or both of the permanent fund dividends, the individual would have been eligible for one of the permanent fund dividends identified in subsection (D)(1) of this section had the individual applied.

E. In the event that a claimant fails to apply for an exemption provided by AS 29.45.030(e) by January 15th of the assessment year for which the exemption is sought, the borough assessor for good cause shown may waive the claimant’s failure to make timely application for the exemption for that year and shall accept the application as if timely filed subject to the provisions contained in AS 29.45.030(e).

Good cause shall include but not necessarily be limited to:

1. Mistake;

2. Inadvertence; or

3. Excusable neglect.

Waiver may only be granted for the year in which an application is filed and for the year immediately prior. Assessor’s rulings under this provision may be appealed to the borough assembly which for good cause shown may waive an applicant’s failure to file timely and may direct the assessor to accept the application as if timely filed subject to the provisions contained in AS 29.45.030(e).

F. The private interests, other than fee simple record ownership, in real property of an individual residing in the property if the property has been developed, improved, or acquired with federal funds for low-income housing and is owned or managed as low-income housing by the Alaska State Building Authority or a regional housing authority formed under AS 18.55.996. This section does not prohibit the borough from continuing to receive payments in lieu of taxes authorized under federal law. This section applies only to those low-income housing units in existence prior to January 1, 1989, hence, any new projects, real property acquisitions and additions to the existing properties after January 1, 1989, shall require an ordinance of the assembly prior to the granting of an exemption under this section;

G. The increase in assessed value of improvements to real property if an increase in assessed value is directly attributable to landscaping, or new maintenance, repair, or renovation of an existing structure, and if the alteration, maintenance, repair, or renovation, when completed, enhances the exterior appearance or aesthetic quality of the land or structure. An exemption may not be allowed under this subsection for the construction of an improvement to a structure if the principal purpose of the improvement is to increase the amount of space for occupancy or nonresidential use in the structure or for the alteration of land as a construction activity. An exemption provided in this subsection may continue for up to four years from the date the improvement is completed or from the date of approval for the exemption by the local assessor, whichever is later; and

H. Property of an organization not organized for business or profit-making purposes and used exclusively for community purpose activities is exempt from taxation under this section.

1. The assessor may from time to time require such information as is reasonably necessary to determine the character of the organization and the nature of uses made. The exemption provided in this section is not applicable unless the required information is provided to the assessor.

2. For purposes of this section, a qualifying community purpose organization must be active and qualified for tax exempt status under section 501(c) of the Internal Revenue Service Tax Code.

3. The property of the following organizations shall be exempt from real and personal property taxation under this section:

a. Kodiak Island Sportsman’s Association;

b. Kodiak Senior Center;

c. Kodiak State Fairgrounds – Kodiak Jaycees;

d. Kodiak Chamber of Commerce; and

e. Kodiak Island Convention and Visitors Bureau. [Ord. FY2009-13 §2, 2008; Ord. FY2007-10 §2, 2006; Ord. 94-03 §2, 1994; Ord. 89-10-O §2, 1989; Ord. 88-31-O §2, 1988; Ord. 84-47-O §1, 1984; Ord. 84-25-O §1, 1984; prior code Ch. 3 subch. 1 §7. Formerly §3.20.080].

3.35.090 Property tax billing.

The treasurer, upon receipt of the certified assessment roll and with the millage rate established by the assembly, will cause to produce property tax bills for all property owners of record. These tax bills will be mailed to the most recent address on file. [Ord. 82-7-O, 1982. Formerly §3.20.085].

3.35.100 Correction of errors.

A. Correction of Error in Billing of Penalty and Interest. When it is shown to the chief fiscal officer that a taxpayer has been billed erroneously for tax, tax penalty, or interest because of administrative error by the borough, the chief fiscal officer may adjust the tax bill accordingly.

B. Correction of Errors in Assessment. When the assessor discovers that an error or omission has been made in a real or personal property assessment or billing, the assessor, upon receipt of proper documentation showing error or omission, may assess, bill, or rebill for such property. Taxable property which has been omitted from assessment for any year may thereafter be assessed and taxed for that year at any future time.

C. All rights provided by this chapter, including but not limited to rights to appeal and times for making payments, shall be reserved to the person receiving a corrected assessment or tax bill as of the time the new assessment or billing is mailed. [Ord. 82-7-O, 1982; Ord. 78-21-O §3, 1978. Formerly §3.20.086].

3.35.110 City taxes.

Taxes levied by the cities within the boundaries of the borough and collected by the borough shall be returned in full to the cities for which collected as provided in AS 29.35.170. [Ord. 82-7-O, 1982; prior code Ch. 3 subch. 1 §6. Formerly §3.20.087].

3.35.120 Tax due dates and delinquency.

Taxes are due when billed. If payment is by a single payment, such payment must be received in the finance office or postmarked by the United States Post Office (USPO), not metered machines, prior to midnight on or before October 15th. Taxes levied in any given year may be paid in two equal installments. If the taxpayer elects this option, then the first half is delinquent unless it is delivered to the borough office or postmarked by the USPO, not metered machines, prior to midnight on or before the fifteenth day of August in the year in which the taxes are levied. The second half of the taxes thus levied is delinquent unless it is delivered to the borough office or postmarked by the USPO, not metered machines, prior to midnight on or before the fifteenth day of November in the year in which the taxes are levied. If the annual levy is made on or after the first day of June, the borough assembly may by resolution establish a later delinquency date. Taxes normally become delinquent after the dates mentioned in this section. [Ord. 99-02 §2, 1999; Ord. 88-30-O, §2, 1987; Ord. 84-24-O, 1984; Ord. 82-33-O, 1982. Formerly §3.20.088].

3.35.130 Exceptions.

Taxes levied in the amount of $50.00 or less must be paid in full on the due date established by the assembly as the due date of the first installment of all taxes in a larger amount. Taxes levied in an amount of $4.99 or less will not be billed. During the process of billing, all full-year tax amounts of less than $5.00 total will be written off as if paid. A full accounting of such write-offs will be available for public inspection. [Ord. 86-25-O, 1986; Ord. 82-33-O, 1982. Formerly §3.20.089].

3.35.140 Late payments – Penalty and interest.

If the first payment is not paid when due, the entire tax becomes delinquent and subject to a penalty of 10 percent of the entire tax and interest shall accrue on the unpaid principal balance, excluding the penalty, at the rate of 12 percent per year. If the first payment is paid when due but the second payment is not paid when due, the unpaid balance of the tax becomes delinquent and subject to a penalty of 10 percent of the unpaid balance, and interest shall accrue on the unpaid principal balance, excluding the penalty, at the rate of 12 percent per year. Partial payments shall be applied first to accrued penalties, then to interest, then to principal. Notwithstanding the acceptance of partial payment, the unpaid balance remains delinquent and the lien therefore enforceable in accordance with law. For the purposes of this section, a payment is paid when due only if it is physically received in the finance office by the due date or postmarked by the USPO, not metered machines, prior to midnight on the due date. [Ord. 99-02 §2, 1999; Ord. 93-36 §2, 1993; Ord. 86-25-O, 1986; Ord. 82-33-O, 1982; Ord. 80-22-O §1, 1980. Formerly §3.20.090].

3.35.150 Enforcement of tax liens on real property.

A. Real Property Tax, Lien, Date. Taxes on real property are a prior and paramount lien on the property upon which the taxes are levied. The lien includes any penalty or interest which may accrue from the delinquency date. The lien attaches on the first day of the tax and/or assessment year in which the taxes are levied.

B. If the tax on real property is not paid when due, the assembly may enforce a lien on the tax by the sale of the property assessed after foreclosure in the special proceedings provided for by the Alaska Statutes, by order of the superior court of the district where the property assessed is located.

C. If the tax on a leasehold interest in a tax exempt property is not paid when due, the borough may enforce the tax by a personal action against the delinquent taxpayer brought in the magistrate or superior court, in addition to other remedies available to enforce the lien. [Ord. 84-1-O §1, 1984; prior code Ch. 3 subch. 1 §9. Formerly §3.20.100].

3.35.160 Preparation of the foreclosure list.

When the assembly elects to proceed under the Alaska Statutes to enforce the lien of taxes against real property, the treasurer shall, within such time as the assembly directs, make up a roll in duplicate of all real property subject to foreclosure. The rolls shall show the name of each person appearing on the latest tax roll as the owner of tax-delinquent property, a description of each property as it appears on the latest tax roll, the year or years for which the taxes are delinquent, the amount of delinquent taxes for each year and penalty and interest thereon accruing the day six months after the day of delinquency of taxes of the latest year. The treasurer shall endorse on the roll a certificate under his hand and the corporate seal that it is a true and correct roll of the delinquent taxes of the borough for the years shown. The roll shall be known as the foreclosure list of the borough for the year in which it is made up, and the original of it shall be filed with the clerk and remain open to inspection by the public. [Ord. 82-7-O, 1982; prior code Ch. 3 subch. 1 §10. Formerly §3.20.110].

3.35.170 Publication of the foreclosure list.

After the completion of the foreclosure list, the treasurer shall, under the direction of the assembly, have published in the official newspaper of the corporation, or in a newspaper of general circulation in the borough designated by the assembly, a notice under the hand of the treasurer setting forth the foreclosure list of real property for the year, naming it as complete and open for public inspection at the office of the clerk, and that on a day certain not less than 30 days after the final publication or posting, where posting is authorized of the notice, the foreclosure list will be presented to the superior court of judgment and order of same. [Ord. 82-7-O, 1982; prior code Ch. 3 subch. 1 §11. Formerly §3.20.120].

3.35.180 Notice of foreclosure proceeding.

A. On the day designated in the notice provided herein, a certified copy of the foreclosure list together with a petition for judgment shall be presented to the superior court. Notice of the foreclosure proceedings shall be given by four weekly publications of the foreclosure list in a newspaper of general circulation in the borough designated by the assembly. The first publication shall be made on the day of the filing of the list and petition. The price charged by the newspaper shall be at the rate provided by law. The publication of the foreclosure list is sufficient service on each person having an interest in the property. The treasurer shall, within 10 days after the first date of publication, mail to each person to whom a tract is assessed, at his last known address, a notice describing the property and the amount due as stated on the foreclosure list.

B. In the event there is no newspaper being published in the borough, the assembly may, instead of publication in the newspaper, post the notice and foreclosure list at the front door of the post office and three other conspicuous public places within the borough. The posting of the foreclosure list is sufficient service on each person interested in the property. However, if the notice is posted, the treasurer shall, within 10 days after the posting, mail to each person to whom a tract is assessed, at his last known address, a notice describing the property and the amount due as stated on the foreclosure list.

C. All persons owning or claiming interest in property included in the foreclosure list are charged with notice of the proceedings and of all steps thereunder. [Ord. 82-7-O, 1982; prior code Ch. 3 subch. 1 §12. Formerly §3.20.130].

3.35.190 Clearing delinquencies before sale.

A. If the treasurer receives delinquent tax payments at least one week before the filing of the foreclosure list and petition, the treasurer shall remove the property from both the list and the petition.

B. During the publication or posting of the foreclosure list and up to the time of sale, a person may pay the taxes, together with the penalty and interest, and a proportionate share of the costs of publication and foreclosure. The treasurer shall make a notation of the payment on both the original delinquent tax roll and foreclosure list. [Ord. 82-7-O, 1982; prior code Ch. 3 subch. 1 §13. Formerly §3.20.140].

3.35.200 Notice of foreclosure list to lien holder.

A. A holder of a mortgage or other recorded lien on real property may file with the treasurer a request that notice of a foreclosure list which includes the real property in which he has a lien be given to him. The request shall contain the name and address of the person filing it, the description of the property, the name of the owner, and the date of expiration of the lien. Notice need not be given after expiration of the lien unless a further request for notice is filed. If the lien holder furnishes a duplicate of his request for notice, the treasurer shall certify on it to the filing and return it to the person making the request.

B. Whenever property described in the request for notice is included in a foreclosure list, the treasurer shall send written notice by registered mail to the lien holder. At the time of mailing the notice, the treasurer shall note that fact in ink in the latest tax roll opposite the description of the property. The notation in the tax roll is prima facie evidence that the notice was mailed. Where the same lien holder has filed requests for notice on two or more properties included in a foreclosure list, one notice may be mailed covering all properties. [Ord. 82-7-O, 1982; prior code Ch. 3 subch. 1 §14. Formerly §3.20.150].

3.35.210 Apportionment of costs.

A foreclosure and publication fee, as set by resolution of the assembly, will be added to each property on the foreclosure list. The intent of this fee is to cover all costs of publication and foreclosure. [Ord. 93-36 §3, 1993; Prior code Ch. 3 subch. 1 §15. Formerly §3.20.160].

3.35.220 Enforcement by personal action.

A. The manager may, at any time prior to execution of deed to borough, remove property from the foreclosure list when the financial benefits of foreclosure are exceeded by the costs of foreclosure and the liabilities of the ownership of the property involved. The borough shall thereafter collect any real property taxes due, plus penalties, costs and interest, by a personal action against the landowner.

B. The title to any property which is removed from the foreclosure list after a decree of foreclosure has been entered shall revert to the parties entitled thereto. [Ord. 98-03 §2, 1998; Ord. 90-38 §2, 1990. Formerly §3.20.165].

3.35.230 Foreclosure proceedings.

The borough shall bring one general proceeding to foreclose the tax liens against each of the properties included in the foreclosure list. The person whose name appears in the latest tax roll as the owner of a property described shall be considered the owner of the property.

On the day of the first publication, a certified copy of the foreclosure list shall be presented to the superior court, together with a petition praying for a judgment and decree foreclosing the tax liens. The foreclosure proceedings for the enforcement of tax liens on real property shall comply with the provisions of Alaska laws presently in force or as amended.

All real properties sold to the borough under the provisions of the Alaska Statutes shall be held by the borough for one year from the date of judgment and decree of foreclosure, unless sooner redeemed. During the one-year period, a person having an interest in the property at the date of the judgment and decree of foreclosure, or any heir or devisee of such person or a person holding a lien of record on the property, or an independent school district or public utility district having a lien on the property may redeem the property by paying the amount applicable under the judgment and decree with interest as provided by law, and the costs charged against the property. Property redeemed is subject to assessment for taxation during the period of redemption as though it has continued in private ownership. A person holding a mortgage or other lien of record, covering a part only of a parcel of real property included in judgment and decree of foreclosure, may redeem that part by paying the proportionate amount applicable under the judgment and decree. [Prior code Ch. 3 subch. 1 §16. Formerly §3.20.170].

3.35.240 Effect of redemption.

The receipt of the redemption money by the treasurer operates to release all claims of the borough under the judgment of foreclosure to the property redeemed. The treasurer, on receipt of the redemption money, shall immediately make the proper increase in the records of his office showing that the property has been redeemed from the sale of the borough, and he shall deliver to the person redeeming the property a certificate of redemption. The certificate shall contain a description of the property redeemed, the total amount paid, and the date of entry of the judgment and decree of foreclosure and sale. The certificate shall be signed by the treasurer and shall be filed by the redemptioner with the recorder who, on payment of the recording fee, shall enter the certificate in the proper records of his office. The clerk of the court shall then file the certificate of redemption as part of the judgment roll in the foreclosure proceedings. [Ord. 82-7-O, 1982; prior code Ch. 3 subch. 1 §17. Formerly §3.20.180].

3.35.250 Notice of expiration of redemption.

Not earlier than 30 days before the expiration of the redemption period, the treasurer shall publish a redemption period expiration notice. The notice shall contain the date of judgment, the date of expiration of the period of redemption and a warning to the effect that all properties ordered sold under the judgment, unless redeemed, shall be deeded to the borough immediately on expiration of the period of redemption and that every right or interest of any person in the properties shall be forfeited forever to the borough. The notice shall be published once a week for four consecutive weeks in a newspaper of general circulation distributed within the borough. The treasurer shall send a copy of the published notice by certified mail to each record owner of property against whom a judgment of foreclosure has been taken. The notice will be mailed within five days of first publication to the last address of record of the property owner. The right of redemption expires 30 days after the date of first publication of the notice. [Ord. 82-7-O, 1982; Ord. 74-11-O §1, 1974; prior code Ch. 3 subch. 1 §18. Formerly §3.20.190].

3.35.260 Deed to borough.

Upon filing proof of publication of notice of expiration of redemption, the properties not redeemed within the one-year period shall be deeded to the borough by the clerk of the court. All rights of redemption terminate on the execution of the deed to the borough. No return of confirmation of the sale or of the deed to the borough is necessary. [Prior code Ch. 3 subch. 1 §19. Formerly §3.20.200].