Chapter 4.45
MUNICIPAL PROPERTY TAX

Sections:

4.45.010    Definitions.

4.45.020    Property subject to assessment, levy and taxation.

4.45.030    Annual motor vehicle registration tax.

4.45.040    Tax situs of personal property.

4.45.050    Property taxes.

4.45.060    Taxpayer notice.

4.45.065    Exemption applications.

4.45.070    Required exemptions.

4.45.080    Optional exemptions and exclusions.

4.45.090    Land subject to conservation easement.

4.45.100    Interest in low-income housing.

4.45.110    Farm or agricultural lands.

4.45.120    Mobile homes.

4.45.130    Mobile home registration.

4.45.140    Tax limitation.

4.45.150    No limitation on taxes to pay bonds.

4.45.160    Full and true value.

4.45.170    Returns.

4.45.180    Independent investigation.

4.45.190    Failure to file return – Fee – Penalty.

4.45.200    Reevaluation.

4.45.210    Assessment roll.

4.45.220    Assessment notice.

4.45.230    Corrections and adjustments.

4.45.240    Appeal.

4.45.250    Board of equalization.

4.45.260    Presiding officer – Hearing officer.

4.45.270    Quorum – Vote.

4.45.280    Notice of hearing of appeal.

4.45.290    Board of equalization – Procedure.

4.45.300    Board of equalization – Rules.

4.45.310    Judicial review.

4.45.320    Supplementary assessment rolls.

4.45.330    Tax adjustments on property affected by a natural disaster.

4.45.340    Tax levy and rate.

4.45.350    Rates of penalty and interest.

4.45.360    Notice of taxes due and payable – Tax bills.

4.45.370    Obligation of taxpayer.

4.45.380    Validity.

4.45.390    Tax liability.

4.45.400    Enforcement of personal property tax liens by distraint and sale.

4.45.410    Real property tax collection.

4.45.420    Foreclosure list.

4.45.430    Clearing delinquencies.

4.45.440    List to lienholder.

4.45.450    General foreclosure.

4.45.460    Answer and objection.

4.45.470    Judgment.

4.45.480    Transfer and appeal.

4.45.490    Redemption period.

4.45.500    Effect.

4.45.510    Additional liens.

4.45.520    Possession during redemption period.

4.45.530    Expiration.

4.45.540    Deed to borough or city.

4.45.550    Sale of foreclosed properties.

4.45.560    Repurchase by record owner.

4.45.570    Proceeds of tax sale.

4.45.580    Payment of taxes upon public utilization.

4.45.590    Refund of taxes.

4.45.600    Change in legal description and prepayment.

Prior Legislation – Ord. No. 80; Ord. No. 110.

O.B.A. – Status of personal property tax as of tax date of January 1, 1973, 73-17; error in listing personal property by owner’s agent, 73-18; taxability of private leaseholds and real property owned by the state, 73-19.

State Law Reference – Municipal property tax, AS 29.45.01029.45.500.

4.45.010 Definitions.

For the purposes of this chapter, the following words and phrases have the meanings respectively ascribed to them:

Assessed Value or Full and True Value in Money. Property shall be assessed at its full and true value in money, as of January 1st of the assessment year.

“Board of equalization” means the assembly of the borough, convened as a board, in accordance with law, for the purpose of equalizing the assessments of real and personal property in the borough.

“Boat” or “vessel” means property designed and constructed for the primary purpose of transporting goods and persons, or both, by water. Registration, licensing or documentation shall not be conclusive proof that the property is a boat or a vessel, but may be considered along with the actual use made of the property and all other relevant factors.

“Equalized value” means the assessed value, established by the board of equalization in accordance with law, for general tax purposes.

“Improvements” means all buildings, structures, fences, landscaping and additions erected in or upon land.

“Lien” or “tax lien” means liens for penalties and interest and costs as well as unpaid taxes.

“Motor vehicle” means all vehicles for which licensing by the state is required.

“Real property” means land and improvements, all possessory rights and privileges appurtenant to the property, and includes personal property affixed to the land or improvements. [Ord. No. 1543, §1, 12-21-09; Ord. No. 553, §1, 1-20-86; Ord. No. 2. Code 1974 §45.11.005; Code 1969 §69.05.005.]

4.45.020 Property subject to assessment, levy and taxation.

All real property in the borough and all personal property in the borough, except motor vehicles subject to the license tax under AS 28.10.431, and as such statute may be hereafter amended, revised or replaced, and except such other property as is by law exempt from taxation, shall be annually assessed, and a tax thereon shall be annually levied and collected for school and municipal purposes, in the manner set forth herein. [Ord. No. 546, §1, 12-2-85; Ord. No. 272, §2, 11-17-77. Code 1974 §45.11.010.]

4.45.030 Annual motor vehicle registration tax.

(a)    There is levied an annual motor vehicle registration tax within the borough pursuant to the provisions of AS 28.10.431 and as such statute may hereafter be amended, revised or replaced. The rate of such tax shall be based upon the age of vehicles as determined by model year according to the following schedule:

Motor Vehicle

Tax According to Age of Vehicle Since Model Year

1st

2nd

3rd

4th

5th

6th

7th

8th or Over

(1) Motorcycle

$10

$9

$8

$7

$5

$3

$2

$2

(2) Vehicles specified in AS 28.10.421(b)(1)

76

63

51

38

25

20

13

9

(3) Vehicles specified in AS 28.10.421(b)(3)

76

63

51

38

25

20

13

9

(4) Vehicles specified in AS 28.10.421(c)(1) – (4)

 

 

 

 

 

 

 

 

5,000 pounds or less

76

63

51

38

25

20

13

9

5,001 – 12,000 pounds

127

101

76

63

51

38

25

13

12,001 – 18,000 pounds

265

227

202

176

151

126

113

100

18,001 pounds or over

328

277

239

202

176

151

126

100

(5) Vehicles specified in AS 28.10.421(b)(4)

127

101

76

63

51

38

25

13

(6) Vehicles specified in AS 28.10.421(b)(6)

10

9

8

7

5

3

2

2

(7) Vehicles specified in AS 28.10.421(d)(8)

76

63

51

38

25

20

13

9

(8) Vehicles specified in AS 28.10.421(b)(2)

76

63

51

38

25

20

13

9

(9) Vehicles eligible for dealer plates under AS 28.10.421(d)(9)

51

 

 

 

 

 

 

 

(b)    All money received by the borough under this section and AS 28.10.431, and as such statute may hereafter be amended, revised or replaced, which is not utilized under subsection (c) of this section, shall be allocated by the borough for city, borough, and service area purposes within the borough in the proportions yielded by dividing the total borough population into the population of each of their respective taxing districts, and multiplying the result of each taxing district by the mill levy of such taxing district upon the property in that district for the fiscal year. Population shall be established by the latest figures determined by the Ketchikan Gateway Borough planning department and accepted by the State of Alaska Department of Community and Regional Affairs for allocation of state revenue sharing funds or other reliable data.

(c)    Subject to assembly appropriations, up to fifty (50) percent of the money received by the borough under this section and AS 28.10.431, and as such statute may hereafter be amended, revised or replaced, shall be allocated by the borough to fund a vehicle disposal system providing an enforcement program for impoundment and disposal of abandoned or junk vehicles and a program for voluntary disposal of vehicles. [Ord. No. 1529, §1, 07-06-09; Ord. No. 1005, §2, 12-2-96; Ord. No. 546, §3, 12-2-85. Code 1974 §45.11.011.]

4.45.040 Tax situs of personal property.

Tax situs means the principal place where an item of personal property is located having due regard to the principal place of business of its owner, the place of residence of its owner, the place where it is registered or licensed, whether it is taxed by other municipalities, and any other factors which may indicate the principal location of the property.

The tax situs of personal property shall be conclusively presumed to be within the city or borough when the property, if not within the municipality on January 1, either:

(a)    Is usually, normally, or regularly kept or used within the city or borough; or

(b)    Has been kept or used within the city or borough for any 90 days or more during the six months immediately preceding the January 1 assessment date. [Ord. No. 715, §1, 11-6-89. Code 1974 §45.11.014.]

4.45.050 Property taxes.

(a)    The borough assembly may levy:

(1)    An areawide property tax for areawide functions, which:

a.    Shall consist of an areawide property tax for schools, the proceeds of which shall be deposited into the local education fund established under Chapter 4.65 KGBC; and

b.    May consist of an areawide property tax for borough purposes other than schools, the proceeds of which shall be deposited into the general fund;

(2)    A property tax limited to the area outside cities for functions limited to the area outside cities; and

(3)    A property tax in a service area for functions limited to the service area.

(b)    If a tax is levied on real or on personal property, the tax must be assessed, levied, and collected as provided in this chapter. [Ord. No. 1833, §2, 5-15-17; Ord. No. 1793A, § 3, 4-18-16; Ord. No. 558, §1, 2-18-86. Code 1974 §45.11.015.]

State Law Reference – Similar provisions, AS 29.45.010.

4.45.060 Taxpayer notice.

If the borough levies and collects property taxes, the assembly shall provide such notice as required by AS 29.45.020(a) in the manner so required. [Ord. No. 1794S, §1, 5-2-16.]

4.45.065 Exemption applications.

(a)    Real property exemption applications for nongovernmental properties must be postmarked or received by the assessor by the following dates for the year in which the exemption is sought:

(1)    Senior citizen exemption – March 31;

(2)    Disabled veteran exemption – July 1;

(3)    Low income housing tax credit – May 15;

(4)    Economic development – January 31.

(b)    All exemption applications not noted in subsection (a) of this section are due by December 15, prior to the tax year for which the exemption is sought, unless otherwise specified by State statute.

(1)    Prior to close of the 30-day real property appeal period, the assessor may grant late applications if the assessor finds sufficient evidence as to conditions or events that resulted in an inability to file a timely application. This subsection does not apply to those exemptions noted in subsection (a) of this section, or to any exemptions where State statute specifies another deadline. Requests for exemption filed after the close of the 30-day appeal period shall be rejected as untimely appeals from the denial of the exemption at issue.

(c)    Initial applications for community purpose, religious, charitable, cemetery, hospital or educational nonprofit exemption shall include:

(1)    The applicant’s articles of incorporation.

(2)    Documentation to support the organization’s not-for-profit status (i.e., IRS Section 501(c)(3) determination letter, or equivalent).

(3)    Evidence of current registration with the Alaska State Division of Corporations per AS 10.20.620.

(4)    Any other information required by the assessor to determine the eligibility or amount of the exemption requested.

(d)    A complete application for a community purpose, religious, charitable, cemetery, hospital or educational nonprofit exemption shall be required by the deadline set out in subsections (a) and (b) of this section, in any year on request of the assessor if the assessor finds or has cause to believe that:

(1)    The applicant is no longer actively registered as a nonprofit corporation with the State of Alaska Division of Corporations.

(2)    There has been a change in ownership of the property.

(3)    There has been a change in use of the property that may require modification or elimination of the exemption.

(e)    Every four years the assessor shall re-certify the status of existing community purpose, religious, charitable, cemetery, hospital or educational nonprofit exemptions to confirm:

(1)    Active registration with the State of Alaska Division of Corporations.

(2)    Ownership of the subject property.

(3)    Qualifying use of the subject property.

(4)    A signed affidavit from the applicant attesting to the accuracy and conclusions made by the assessor in that review.

If the applicant meets the above requirements, the assessor shall continue the exemption. If the applicant does not meet the above requirements, the assessor shall remove the exemption and the applicant shall be notified of that action via certified mail. The applicant may correct any noted deficiencies and request that the assessor reconsider the application prior to the close of the 30-day appeal period.

(f)    All owners of exempted property shall notify the assessor of any change in ownership or property use within 30 days of the change. [Ord. No. 1688A, §3, 11-4-13.]

4.45.070 Required exemptions.

(a)    The following property is exempt from general taxation:

(1)    Municipal or State property, except that:

a.    A private leasehold, contract or other interest in the property is taxable to the extent of the interest;

b.    Notwithstanding any other provision of law, property acquired by an agency, corporation, or other entity of the State through foreclosure or deed in lieu of foreclosure and retained as an investment of a State entity is taxable; this subsection does not apply to federal land granted to the University of Alaska under AS 14.40.380 or 14.40.390, or the other land granted to the university by the State to replace land that had been granted under AS 14.40.380 or 14.40.390;

c.    An ownership interest of a municipality in real property located outside the municipality acquired after December 31, 1990, is taxable by another municipality; however, a borough may not tax an interest in real property located in the borough and owned by a city in that borough;

(2)    Household furniture and personal effects of members of a household;

(3)    Property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes;

(4)    Property of a nonbusiness organization or its auxiliary composed entirely of persons with 90 days or more of active service in the armed forces of the United States whose conditions of service and separation were other than dishonorable;

(5)    Money on deposit;

(6)    The real property of certain residents of the state to the extent and subject to the conditions provided in subsection (e) of this section;

(7)    Real property or an interest in real property that is exempt from taxation under 43 U.S.C. 1620(d), as amended;

(8)    Property of a political subdivision, agency, corporation, or other entity of the United States to the extent required by federal law; except that a private leasehold, contract, or other interest in the property is taxable to the extent of that interest;

(9)    Natural resources in place including coal, ore bodies, mineral deposits, and other proven and unproven deposits of valuable materials laid down by natural processes, unharvested aquatic plants and animals, and timber.

(b)    In subsection (a) of this section, “property used exclusively for religious purposes” includes the following property owned by a religious organization:

(1)    The residence of an educator in a private religious or parochial school or a bishop, pastor, priest, rabbi, minister, or religious order of a recognized religious organization; for purposes of this subsection, “minister” means an individual who is:

a.    Ordained, commissioned, or licensed as a minister according to standards of the religious organization for its ministers; and

b.    Employed by the religious organization to carry out a ministry of that religious organization;

(2)    A structure, its furniture, and its fixtures used solely for public worship, charitable purposes, religious administrative offices, religious education, or a nonprofit hospital;

(3)    Lots required by local ordinance for parking near a structure defined in subsection (b)(2) of this section.

(c)    Property described in subsection (a)(3) or (a)(4) of this section from which income is derived is exempt only if that income is solely from use of the property by nonprofit, religious, charitable, hospital, or educational groups. If used by nonprofit educational groups, the property is exempt only if used exclusively for classroom space.

(d)    Laws exempting certain property from execution under the Code of Civil Procedure (AS 09) do not exempt the property from taxes levied and collected by the borough.

(e)    The real property owned and occupied as the primary residence and permanent place of abode by: (1) a resident sixty-five (65) years of age or older, or (2) a disabled veteran, or (3) a resident at least sixty (60) years old who is the widow or widower of a person who qualified for an exemption under subsection (e)(1) or (e)(2) of this section is exempt from taxation on the first one hundred fifty thousand dollars ($150,000) of the assessed value of the real property. In a case of hardship an exemption beyond the first one hundred fifty thousand dollars ($150,000) of assessed value may be granted in accordance with the regulations of the State of Alaska Department of Commerce, Community, and Economic Development. This exemption is limited to a claimant’s primary residence. A claimant must apply by completing State Form 21-400c and submitting the form, including necessary attachments, to the borough assessor before July 1st of the exemption year. An eligible claimant may qualify for a hardship exemption if the claimant’s gross household income is less than one hundred fifty (150) percent of the poverty guideline as established by the United States Department of Health and Human Services for a similar sized household in the state of Alaska for the year requested and the amount of the claimant’s tax bill is greater than two (2) percent of the claimant’s gross household income. An exemption will be granted only for that portion of the claimant’s taxes in excess of two (2) percent of gross household income. “Gross household income” means total annual compensation earned and unearned from all sources, of all members of the household for the most recent calendar year. Only one (1) exemption may be granted for the same property and, if two (2) or more persons are eligible for an exemption for the same property, the parties shall decide between or among themselves who is to receive the benefit of the exemption. Real property may not be exempted under this subsection if the assessor determines, after notice and hearing to the parties, that the property was conveyed to the applicant primarily for the purpose of obtaining the exemption. The determination of the assessor may be appealed under AS 44.62.560 through 44.62.570.

(f)    To be eligible for an exemption under subsection (e) of this section for a year, in which the individual applying for an exemption must also meet requirements under one (1) of the following 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 (1) or both of the permanent fund dividends, the individual would have been eligible for one (1) of the permanent fund dividends identified in subsection (f)(1) of this section had the individual applied.

An exemption may not be granted under subsection (e) of this section except upon written application for the exemption on a form designated by the borough assessor. If the claimant has not qualified for an exemption for that property for the prior year the claimant must file the application no later than March 31st of the assessment year for which the exemption is sought. A qualified senior citizen or disabled veteran need not file such application for successive tax years if there is no change of residency, ownership, permanent place of abode by the owner of record, use of the property, status of disability if the owner is a disabled veteran, or other factors affecting qualification for the exemption. For exemption applications filed after March 31st, the borough assessor is authorized to accept the application as timely filed so long as the inability to apply was based on a serious medical or other similar serious condition or event beyond the claimant’s control that resulted in the inability to timely file application. A failure to pick up or read mail, or a failure to timely provide current address to the office of the borough assessor, will not be deemed an inability to comply and the application will not be accepted for that tax year. However, a claimant’s application for late filing must be filed prior to July 1st of the year for which the exemption is sought or that year’s application will not be considered. The assessor shall accept disabled veteran applications for previous tax years only where the disabled veteran has completed application for each year that the exemption is sought and has received a qualifying retroactive disability evaluation from the Veteran’s Administration or applicable branch of service. The borough assembly, for good cause shown, may waive a disabled veteran claimant’s failure to make timely application for exemption for prior tax years and authorize the assessor to accept the application as if timely filed.

If an application is filed within the required time and is approved by the assessor, the assessor shall allow an exemption in accordance with the provisions of this section. If the application for exemption is approved after taxes have been paid, the amount of tax that the claimant has already paid for the assessment year for the property exempted shall be refunded to the claimant. The assessor shall require proof in the form the assessor considers necessary of the right to and amount of an exemption claimed under subsection (e) of this section, and shall require a disabled veteran claiming an exemption under subsection (e) of this section to provide evidence of the disability rating. A disabled veteran who has not received a permanent disability rating will be required to file annually. It shall be the claimant’s (property owner’s) responsibility to notify the borough when the requirements for exemption are no longer met. If the assessor determines that a property is not eligible for exemption, all taxes, penalty and interest due on the property from the tax lien date following the date the property should have been subject to taxation are immediately due and owing. The assessor may require proof under this section at any time.

(g)    In subsections (e) and (f) of this section:

(1)    “Disabled veteran” means a disabled person:

a.    Separated from the military service of the United States under a condition that is not dishonorable who is a resident of the state, whose disability was incurred or aggravated in the line of duty in the military service of the United States, and whose disability has been rated as 50 percent or more by the branch of service in which that person served or by the Veterans’ Administration;

b.    Who served in the Alaska Territorial Guard, who is a resident of the State, whose disability was incurred or aggravated in the line of duty while serving in the Alaska Territorial Guard, and whose disability has been rated as 50 percent or more;

(2)    “Real property” includes but is not limited to mobile homes, whether classified as real or personal property for municipal tax purposes.

(h)    One motor vehicle per household owned by a resident 65 years of age or older on January 1 of the assessment year is exempt either from taxation on its assessed value or from the registration tax under AS 28.10.431. An exemption may be granted under this subsection only upon written application on a form prescribed by the State of Alaska Department of Public Safety.

(i)    For the purpose of determining property exempt under subsection (a)(7) of this section, the following definitions apply to terms used in 43 U.S.C. 1620(d) unless superseded by applicable federal law:

(1)    “Developed” means a purposeful modification of the property from its original state that effectuates a condition of gainful and productive present use without further substantial modification; surveying, construction of roads providing utilities or other similar actions normally considered to be component parts of the development process, but that do not create the condition described in this subsection, do not constitute a developed state within the meaning of this subsection; developed property, in order to remove the exemption, must be developed for purposes other than exploration, and be limited to the smallest practicable tract of the property actually used in the developed state;

(2)    “Exploration” means the examination and investigation of undeveloped land to determine the existence of subsurface nonrenewable resources;

(3)    “Lease” means a grant of primary possession entered into for gainful purposes with a determinable fee remaining in the hands of the grantor; with respect to a lease that conveys rights of exploration and development, this exemption shall continue with respect to that portion of the leased tract that is used solely for the purpose of exploration.

(j)    If property or an interest in property that is determined not to be exempt under subsection (a)(7) of this section reverts to an undeveloped state, or if the lease is terminated, the exemption shall be granted, subject to the provisions of subsections (a)(7) and (i) of this section. [Ord. No. 1838, §1, 9-5-17; Ord. No. 1536, §1, 9-21-09; Ord. No. 1434, §1, 5-22-07; Ord. No. 1234, §1, 10-21-02; Ord. No. 1195, §1, 10-1-01; Ord. No. 891, §1, 11-2-92; Ord. No. 591, §1, 12-1-86; Ord. No. 590, §1, 12-1-86; Ord. No. 558, §3, 2-18-86; Ord. No. 411, §1, 3-1-82; Ord. No. 272, §3, 11-17-77. Code 1974 §45.11.020.]

State Law Reference – Similar provisions, AS 29.45.030.

4.45.080 Optional exemptions and exclusions.

(a)    The borough may exclude or exempt or partially exempt residential property from taxation by ordinance ratified by the voters at a regular or special election. An exclusion or exemption authorized by this section may not exceed the assessed value of $10,000 for any one residence.

(b)    The borough assembly hereby classifies and exempts from taxation:

(1)    The property of organizations not organized for business or profit-making purposes and used exclusively for community purposes; provided, that income derived from rental of such property does not exceed the actual cost to the owner of the use by the renter;

(2)    Business inventories; and

(3)    All personal property except: (1) that which is defined in KGBC 1.10.020 and 4.45.010 as part of real property; and (2) motor vehicles that are included in KGBC 4.45.030 and levied a registration tax under AS 28.10.431.

(c)    The provisions of subsection (a) of this section notwithstanding, the borough assembly may, by ordinance, adjust its property tax structure in whole or in part to the property tax structure of a city in the borough, including, but not limited to, excluding personal property from taxation, establishing exemptions, and extending the redemption period.

(d)    Exemptions or exclusions from property tax which have been granted by home-rule municipalities in addition to exemptions authorized or required by law, and which are in effect on September 10, 1972, and not later withdrawn, are not affected by this section.

(e)    The following specific property is hereby exempted from taxation by the borough:

(1)    The real and personal property of the North Tongass Community Club.

(2)    Any property or part of the property of said North Tongass Community Club from which rentals or income are derived is not exempted from taxation under subsection (e)(1) of this section unless the income derived from the rentals does not exceed the actual cost to the owner of the use by the renter.

(f)    Commencing on January 1, 1998, that part of real or personal property used in a manufacturing business not exceeding a value of $5,000,000 that:

(1)    Has not previously been taxed as real or personal property by the borough; and

(2)    Is used in a trade or business having fewer than 100 annual full-time equivalent employees in a way that:

a.    Creates employment in the borough; and

b.    Generates sales outside of the borough of goods produced in the borough, or materially reduces the importation of goods from outside the borough by substituting locally manufactured goods; and

(3)    Has not been used in the same trade or business in another municipality for at least six months before the application for deferral or exemption is filed; this subsection does not apply if the property was used in the same trade of business in an area that has been annexed to the borough within six months before the application for deferral or exemption is filed; this subsection does not apply to inventories. Such real property or personal property shall be exempted as follows:

Percent of Full Taxation 

Year one

0%

Year two

20%

Year three

40%

Year four

60%

Year five

80%

Year six

100%

(4)    In order to qualify for this exemption, the claimant must file a written application for the exemption no later than January 31 of the first assessment year in the five-year period for which the exemption is sought. The application shall be on a form prescribed by the borough assessor and shall include all information determined necessary by the assessor to determine eligibility of the property for the exemption. No exemption shall be granted unless determined eligible by the assessor and approved by the assembly under this section. Exemptions may be granted to property owners not engaged in a manufacturing business if the application is accompanied by evidence of a binding obligation to remit the full value of the exemption to a manufacturing enterprise using the property. The total exemption for any related manufacturing operation or operations shall not exceed $5,000,000.

(5)    An applicant delinquent in the registration for, filing or payment of any property tax, sales tax, excise tax, special assessment or fee may not be granted an exemption under this subsection. If a person owning property previously granted an exemption under this subsection thereafter becomes delinquent in the registration for, filing or payment of any property tax, sales tax, excise tax, special assessment or fee, the exemption under this subsection shall, upon a written finding of the delinquency by the manager, be revoked for the following tax year.

(g)    Pursuant to AS 29.45.050(p), a private leasehold, contract, or other interest held by or through an applicant or proposed applicant in any property, assets, project, or development project owned by the Alaska Industrial Development and Export Authority under AS 44.88 is exempt from property tax. The borough manager may negotiate a payment in lieu of taxes for property exempt under this section. Any such agreement is subject to assembly approval. [Ord. No. 1621, §1, 3-5-12; Ord. No. 1543, §2, 12-21-09; Ord. No. 1345, §1, 3-28-05; Ord. No. 1025, §1, 5-5-97; Ord. No. 558, §§4 – 7, 2-18-86; Ord. No. 484, §1, 1-3-84; Ord. No. 13. Code 1974 §45.11.025; Code 1969 §69.05.015.]

Annotation – The legislature of a state or territory may classify property for purposes of taxation and may exempt particular property in the absence of some limitation contained in the Constitution or other organic law. But the authority of a municipal corporation to allow such exemption, unless expressly conferred by law, has generally been denied. Valentine v. Juneau, 5 Alas F 467, 36 F2d 904, 1929.

4.45.090 Land subject to conservation easement.

(a)    Land that is subject to a conservation easement created under AS 34.17 and used consistent with the conservation easement shall be assessed on the basis of full and true value for use subject to conservation easement and may not be assessed as though it was not subject to the conservation easement. The assessor shall maintain records valuing the land for both full and true value and value subject to the conservation easement. The municipality may, by ordinance, require that if the land is sold, leased, or otherwise disposed of for uses incompatible with the conservation easement or if the conservation easement is conveyed to the owner of the property, the owner shall pay to the municipality an amount equal to the additional tax at the current mill levy together with eight percent interest for the preceding 10 years, as though the land had not been assessed subject to the conservation easement.

(b)    To secure the assessment under this section, an owner of the land subject to a conservation easement must apply to the assessor before May 15 of each year in which the assessment is desired. The application shall be made upon forms prescribed by the assessor and shall include information that may reasonably be required to determine the entitlement of the applicant. [Ord. No. 891, §2, 11-2-92. Code 1974 §45.11.027.]

4.45.100 Interest in low-income housing.

An interest, other than record ownership, in real property of an individual residing in the property is exempt from real property taxes 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 state building authority or a regional housing authority formed under AS 18.55.996. This section does not prohibit the borough from receiving payments in lieu of taxes authorized under federal law. [Ord. No. 678, §1, 1-3-89. Code 1974 §45.11.030.]

4.45.110 Farm or agricultural lands.

(a)    Farm use land included in a farm unit and not dedicated or being used for nonfarm purposes shall be assessed on the basis of full and true value for farm use and may not be assessed as if subdivided or used for some other nonfarm purpose. The assessor shall maintain records valuing the land for both full and true value and farm use value. If the land is sold, leased, or otherwise disposed of for uses incompatible with farm use or converted to a use incompatible with farm use by the owner, the owner is liable to pay an amount equal to the additional tax at the current mill levy together with eight percent interest for the preceding seven years, as though the land had not been assessed for farm use purposes. Payment by the owner shall be made to the State to the extent of its reimbursement for revenue loss under subsection (d) of this section for the preceding seven years. The balance of the payment shall be made to the borough.

(b)    An owner of farm use land must, to secure the assessment under this section, apply to the assessor before May 15 of each year in which the assessment is desired. The application shall be made upon forms prescribed by the State Assessor for the use of the local assessor, and shall include information that may reasonably be required to determine the entitlement of the applicant. If the land is leased for farm use purposes, the applicant shall furnish to the assessor a copy of the lease bearing the signatures of both lessee and lessor along with the completed application. The applicant shall furnish the assessor a copy of the lease covering the period for which the exemption is requested.

(c)    In this section “farm use” means the use of land for profit for raising and harvesting crops, for the feeding, breeding, and management of livestock, for dairying, or another agricultural use, or any combination of these. To be farm use land, the owner or lessee must be actively engaged in farming the land, and derive at least 10 percent of yearly gross income from the land. This section does not apply to land for which the owner has granted, and has outstanding, a lease option to buy the surface rights. A property owner wishing to file for farm use classification having no history of farm-related income may submit a declaration of intent at the time of filing the application with the assessor setting out the intended use of the land and the anticipated percentage of income. An applicant using this procedure shall file with the assessor before February 1 of the following year a notarized statement of the percentage of gross income attributable to the land. Failure to make the filing required in this subsection forfeits the exemption.

(d)    In the event of a crop failure by an act of God the previous year, the owner or lessee may submit an affidavit affirming that 10 percent of gross income for the past three years was from farming. [Ord. No. 558, §9, 2-18-86. Code 1974 §45.11.035.]

State Law Reference – Similar provisions, AS 29.45.060.

4.45.120 Mobile homes.

Mobile homes, trailers, house trailers, 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 are classed as real property for tax purposes. This section does not apply to house trailers and mobile homes that are unoccupied and held for sale by persons engaged in the business of selling mobile homes. [Ord. No. 558, §10, 2-18-86. Code 1974 §45.11.040.]

State Law Reference – Similar provisions, AS 29.45.070.

4.45.130 Mobile home registration.

(a)    Title or Bill of Sale. Any owner of a residential or commercial mobile building having a tax situs in the borough shall provide the borough assessor with a copy of the certificate of title or of a bill of sale that includes the date of transfer, owner’s name and mailing address, building’s physical address, vehicle identification or serial number, make, model, dimensions, and manufacture date of such mobile building.

(b)    Change of Location. Every owner of a residential or commercial mobile building having a tax situs within the Ketchikan Gateway Borough shall notify the borough assessor of any change of location of such mobile building within 30 days after any change of location has occurred.

(c)    Violations – Penalties. Any person who shall violate any provision of this section shall be guilty of a violation and upon conviction shall be subject to a fine of not less than $100 nor more than $300 for each violation.

(d)    Exemptions. The provisions of this section shall not apply to mobile homes owned by the State of Alaska or any subdivision thereof, or by the United States government or any subdivision thereof, nor shall the provisions of this section apply to dealers of new mobile homes which are unoccupied and held for purposes of sale.

(e)    Definitions. A residential mobile building and a commercial mobile building shall be defined as provided in KGBC 18.05.140(j). [Ord. No. 1726, §4, 8-4-14; Ord. No. 1607, §9, 10-3-11; Ord. No. 945, §1, 6-20-94; Ord. No. 885, §§1 – 3, 9-21-92; Ord. No. 319A, §1, 12-18-79. Code 1974 §45.11.042.]

4.45.140 Tax limitation.

The borough assembly shall not levy any tax for any purpose in excess of three percent of the assessed valuation of property within the borough in any one year. All property upon which a tax is levied shall be taxed at the same rate during the year. [Ord. No. 558, §11, 2-18-86. Code 1974 §45.11.045.]

State Law Reference – Similar provisions, AS 29.45.090.

4.45.150 No limitation on taxes to pay bonds.

The limitation provided for in KGBC 4.45.140 does not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. Taxes to pay or secure the payment of principal and interest on bonds may be levied without limitation as to rate or amount, regardless of whether the bonds are in default or in danger of default. [Ord. No. 558, §12, 2-18-86. Code 1974 §45.11.050.]

State Law Reference – Similar provisions, AS 29.45.100.

4.45.160 Full and true value.

(a)    The assessor shall assess property at its full and true value as of January 1 of the assessment year, except as provided in subsection (b) of this section and KGBC 4.45.110 and 4.45.330. The full and true value is the estimated price which the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property, and with prevailing general price levels. The assessor shall complete the assessments no later than April 15 of each year.

(b)    The provisions of this subsection apply to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42:

(1)    When the assessor acts to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42, instead of assessing the property under subsection (a) of this section, the assessor shall base assessment of the value of the property on the actual income derived from the property and may not adjust it based on the amount of any federal income tax credit given for the property; for property the full and true value of which is to be determined under this subsection, to secure an assessment under this subsection, an owner of property that qualifies for the low-income housing credit shall apply to the assessor before May 15 of each year in which the assessment is desired; the property owner shall submit the application on forms prescribed by the assessor and shall include information that may reasonably be required to determine the entitlement of the applicant;

(2)    The assembly hereby determines that the full and true value of all property within the municipality that first qualifies for a low-income housing credit under 26 U.S.C. 42 on and after January 1, 2001, but before January 1, 2006, may be assessed under subsection (b)(1) of this section if the assembly determines, by motion or resolution, with respect to a particular parcel, that the property shall be assessed under subsection (b)(1) of this section;

(3)    If the assembly determines, under subsection (b)(2) of this section, that a parcel shall be assessed under subsection (b)(1) of this section, the assembly may not change the manner of assessment of the parcel of property if debt relating to the property incurred in conjunction with the property’s qualifying for the low-income housing tax credit remains outstanding. [Ord. No. 1229, §1, 9-3-02; Ord. No. 590, §2, 12-1-86; Ord. No. 558, §13, 2-18-86; Ord. No. 546, §2, 12-2-85; Ord. No. 272, §4, 11-17-77; Ord. No. 2. Code 1974 §45.11.055; Code 1969 §69.05.020.]

State Law Reference – Similar provisions, AS 29.45.110.

Annotation – An assessment made on basis of full value under a taxing ordinance requiring that all taxable property be assessed at its true and full value was not rendered invalid by reason of the assessor’s departure from a policy of allowing a 10 percent deduction in prior years. 1200 “L” St. Corp. v. Anchorage, 390 P2d 436, 1964.

4.45.170 Returns.

(a)    Every person having ownership or control of or an interest in property shall submit a return in the form and by the date prescribed by the assessor, based on property values existing on January 1, except as otherwise provided in this chapter.

(b)    The assessor may, by written notice, require a person to provide additional information within 30 days.

(c)    All returns and the data contained therein shall be confidential and may be inspected or copied only by the person filing the return, or his authorized representative, officers authorized to administer tax laws and law enforcement officers of the United States, the State of Alaska and municipalities. Nothing contained in this section shall prohibit the release or publication of statistics from information contained in such returns in such manner as to not disclose the identification of the persons or establishments filing the returns. [Ord. No. 447, §1, 2-7-83. Code 1974 §45.11.060.]

State Law Reference – Similar provisions, AS 29.45.120.

4.45.180 Independent investigation.

(a)    The assessor is not bound to accept a return as correct. The assessor may make an independent investigation of property returned or of taxable property on which no return has been filed. In either case, the assessor may make the assessor’s own valuation of the property subject to an ad valorem tax, and this valuation is prima facie evidence of the value of the property.

(b)    For investigation, the assessor or the assessor’s agent may enter real property during reasonable hours to examine visible personal property and the exterior of a dwelling or other structure on the real property. The assessor or assessor’s agent may enter and examine the interior of a dwelling or other structure or the personal property in it only (1) if the structure is under construction and not yet occupied; (2) with the permission of a person in actual possession of the structure; or (3) in accordance with a court order to compel the entry and inspection. The assessor or the assessor’s agent may examine all property records involved. A person shall, upon request, furnish to the assessor or the assessor’s agent assistance for the investigation and permit the assessor or the assessor’s agent to enter a dwelling or other structure to examine the structure or personal property in it during reasonable hours. The assessor may seek a court order to compel entry and production of records needed for assessment purposes.

(c)    An assessor may examine a person on oath. Upon request, the person shall submit to examination at a reasonable time and place selected by the assessor. [Ord. No. 1688A, §4, 11-4-13; Ord. No. 1607, §10, 10-3-11; Ord. No. 558, §14, 2-18-86; Ord. No. 329A, §1, 4-2-79; Ord. No. 2. Code 1974 §45.11.065; Code 1969 §69.05.020.]

State Law Reference – Similar provisions, AS 29.45.130.

4.45.190 Failure to file return – Fee – Penalty.

(a)    If a taxpayer fails to file a return as provided in KGBC 4.45.170(a) by January 15 of the tax year and, as allowed under KGBC 4.45.180, the assessor prepares a valuation based upon information available or obtained by the assessor of the taxable property (also referred to as a “forced filing”) the taxpayer shall be subject to a fee of $200 for the costs of the assessor’s preparation of the forced filing return. Upon formal request by the taxpayer, the assessor may grant an extension of up to 30 days to submit the return. The assessor shall notify the taxpayer of the fee as of the date of mailing of personal property assessment notices.

(b)    A person or entity that knowingly makes a false affidavit to a business personal return required by this chapter relative to the amount, location, kind or value of property subject to taxation with intent to evade the taxation is guilty of a violation. Upon conviction, the person or entity is subject to a fine of not more than $1,000. [Ord. 1618, §1, 2-27-12; Ord. No. 1607, §11, 10-3-11; Ord. No. 558, §15, 2-18-86. Code 1974 §45.11.070.]

Annotation – Under a tax ordinance that requires a listing of all personal property in a sworn statement, the city has power to impose punishment, including fine or imprisonment. It would be impractical and without precedent to hold that a violation of every duty imposed on a taxpayer could only be punished by one of the collection remedies such as foreclosure, levy, distress and sale of the taxpayer’s property. Anchorage v. Campbell, 13 Alas 739, 105 F. Supp 607, 1952; Valdez v. Fish, 4 Alas 427, 1911.

State Law Reference – Similar provisions, AS 29.45.140.

4.45.200 Reevaluation.

A systematic reevaluation of taxable real and personal property undertaken by the assessor, whether of specific areas in which real property is located or of specific classes of real or personal property to be assessed, shall be made only in accordance with a resolution or other act of the assembly directing a systematic reevaluation of all taxable property within the borough over the shortest period of time practicable, as determined by the assembly and fixed in the resolution or other act of the assembly. [Code 1974 §45.11.075.]

State Law Reference – Similar provisions, AS 29.45.150.

4.45.210 Assessment roll.

(a)    The assessor shall prepare an annual assessment roll. The roll shall contain:

(1)    A description of all taxable property;

(2)    The assessed value of all taxable property;

(3)    The names and addresses of persons with property subject to assessment and taxation.

(b)    The assessor may list real property by any description that may be made certain. Real property is assessed to the record owner. The district recorder shall, at least monthly, provide the assessor a copy of each recorded change of ownership and the address of the person recording the change of ownership. Other persons having an interest in the property may be listed on the assessment records with the owner. The person in whose name the property is listed as owner is conclusively presumed to be the legal record owner. If the property owner is unknown, the property may be assessed to “unknown owner.” No assessment is invalidated by a mistake, omission or error in the name of the owner, if the property is correctly described. [Ord. No. 558, §16, 2-18-86; Ord. No. 2. Code 1974 §45.11.080; Code 1969 §69.05.020.]

State Law Reference – Similar provisions, AS 29.45.160.

4.45.220 Assessment notice.

(a)    The assessor shall give every person named on the assessment roll a notice of assessment which shall include the following:

(1)    The assessed value of the subject property as determined by the assessor;

(2)    The dates when the taxes are payable;

(3)    The dates when taxes are delinquent and subject to interest and penalty;

(4)    A summary of the dates and procedures for filing appeals; and

(5)    The date when the board will begin the annual session of the board of equalization.

(b)    Sufficient assessment notice is given if mailed by first-class mail 30 days before the equalization hearings. If the address is not known to the assessor, the notice may be addressed to the person at the post office nearest the property. Notice is effective on the date of mailing. The notice is complete upon mailing. [Ord. No. 787, §1, 1-21-91; Ord. No. 329A, §§2, 3, 4-2-79; Ord. No. 2. Code 1974 §45.11.085; Code 1969 §69.05.020.]

State Law Reference – Similar provisions, AS 29.45.170.

4.45.230 Corrections and adjustments.

(a)    A person receiving an assessment notice shall advise the assessor of errors or omissions in the assessment of the person’s property. The assessor may correct errors or omissions in the roll before the board of equalization hearing.

(b)    If errors found in the preparation of the assessment roll are adjusted, the assessor shall mail a corrected notice allowing 30 days for appeal to the board of equalization. [Ord. No. 558, §17, 2-18-86; Ord. No. 329A, §5, 4-2-79; Ord. No. 2. Code 1974 §45.11.090; Code 1969 §69.05.030.]

4.45.240 Appeal.

(a)    Subject to the provisions of this chapter, 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.

(b)    The appellant shall, within 30 days after the date of mailing of notice of assessment, submit to the assessor a written appeal specifying the appellant’s opinion of value and grounds for the appeal with supporting evidence in the form that the board of equalization may require. Otherwise, the right of appeal ceases unless the board of equalization finds that the taxpayer was unable to comply.

(c)    The assessor shall notify each appellant as required in KGBC 4.45.280.

(d)    If the assessor and the appellant mutually resolve a duly filed appeal prior to a hearing by the board of equalization, the appellant may withdraw that appeal. The appellant’s withdrawal must be filed in writing with the assessor prior to the assessor closing the appeal.

(e)    The assessor shall prepare for use by the board of equalization a summary of assessment data relating to each assessment that is appealed.

(f)    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. [Ord. No. 1688A, §5, 11-4-13; Ord. No. 782, §1, 11-19-90; Ord. No. 558, §18, 2-18-86; Ord. No. 329A, §7, 4-2-79; Ord. No. 2. Code 1974 §45.11.095; Code 1969 §69.05.030.]

4.45.250 Board of equalization.

(a)    The borough assembly sits as the board of equalization for the purpose of hearing an appeal from a determination of the assessor, or it may delegate this authority to one or more boards appointed by it. An appointed board may be composed of not less than three persons, who may be members of the borough assembly, borough residents, or a combination of members of the borough assembly and borough residents. The borough assembly shall, by ordinance, establish the qualifications for membership in any such appointed board.

(b)    The board may alter an assessment of a lot only pursuant to an appeal filed as to the particular lot.

(c)    Notwithstanding other provisions in this section, a determination of the assessor as to whether property is taxable under law may be appealed directly to the superior court.

(d)    The annual session of the board of equalization shall be convened as an organizational meeting on the third Monday of March of each year. Adjourned meetings shall be scheduled until all appeals duly filed have been heard, and the annual session shall adjourn sine die. [Ord. No. 787, §2, 1-27-91; Ord. No. 558, §19, 2-18-86; Ord. No. 329A, §9, 4-2-79; Ord. No. 188, §2, 3-3-75. Code 1974 §45.11.100.]

4.45.260 Presiding officer – Hearing officer.

(a)    The board of equalization shall elect from its members a presiding officer who shall serve at the pleasure of the board of equalization. A hearing of a contested appeal may be presided over by a hearing officer, who shall be a member of the bar of the State of Alaska and who shall have been admitted to said bar for at least two years prior to his appointment as hearing officer. In such contested appeals the board of equalization shall hear the appeal with the hearing officer. In such contested appeals, the hearing officer shall preside at the hearing, rule on the admission and exclusion of evidence, and advise the said board on matters of law. The said board shall exercise all other powers relating to the conduct of the hearing.

(b)    A hearing officer or member of said board shall disqualify himself and withdraw from a case in which he cannot accord a fair and impartial hearing or consideration; provided, however, that no member of said board may withdraw voluntarily or be disqualified if his disqualification would prevent the existence of a quorum qualified to act in the particular appeal.

(c)    The proceedings at the hearing of such appeals shall be reported by a phonographic reporter or recorder, or other adequate means of assuring an accurate record. [Ord. No. 188, §3, 3-3-75. Code 1974 §45.11.101.]

4.45.270 Quorum – Vote.

(a)    A majority of the total membership of the board constitutes a quorum. In the absence of a quorum, no hearing or decision may be made; however, any number less than a quorum may recess or adjourn the meeting to a later date.

(b)    The affirmative vote of a majority of the members voting at a meeting at which a quorum is present is required to modify or change an assessment. In the absence of an affirmative vote on a motion to modify, change or affirm an assessment, the assessment as determined by the assessor shall be deemed upheld. [Ord. No. 558, §20, 2-18-86; Ord. No. 439, §1, 3-7-83; Ord. No. 188, §4, 3-3-75. Code 1974 §45.11.102.]

4.45.280 Notice of hearing of appeal.

The said board of equalization shall direct the borough assessor to mail to each appellant notice of the sitting at which the appeal is to be heard, at the appellant’s last known address as the same is shown on the assessor’s records. Such notice is complete upon mailing. Such notices shall be mailed not later than 10 days prior to the date of hearing of said appeals. All such notices shall contain at least the following information: physical location of the hearing room, the day of the month and year, and the time of day. All such notices shall also notify the appellant that the appellant has the burden of proof, that the only grounds for adjustment are proof of unequal, excessive, improper or under valuation based on facts that are stated in a valid written appeal timely filed or proved at the hearing; that appellant may be present at the hearing, may be but need not be represented by counsel, may present any relevant evidence, and will be given an opportunity to cross-examine all witnesses testifying against him. [Ord. No. 1688A, §6, 11-4-13; Ord. No. 886, §1, 9-21-92; Ord. No. 188, §5, 3-3-75. Code 1974 §45.11.103.]

4.45.290 Board of equalization – Procedure.

(a)    In conducting hearings, the board of equalization shall follow the procedures hereinafter set forth; provided, however, that failure to strictly adhere to such procedures shall not invalidate the board’s action.

(b)    The presiding officer shall call the board to order at the time set for the first hearing. It is the duty of the presiding officer to determine that a quorum is present and that proper arrangements have been made to keep a record of the actions of the board. Hearings shall then proceed in the following manner:

(1)    Appeals shall be heard in the order scheduled by the assessor. If an appellant is not present at the time scheduled, his appeal will be deferred and the next scheduled appellant heard. When the board has heard the appeals of all scheduled appellants who have appeared at the hearing, it shall take up the appeals of absent appellants. If any appellant has failed to appear, the board may proceed with the hearing in his absence upon whatever material has been previously filed by such absent appellant. If no material containing competent evidence has been filed by the appellant, the appeal shall be dismissed by the board.

(2)    The assessor or his designee is called by the presiding officer to identify the subject property and submit certain known facts to generally familiarize the board with the subject property.

(3)    The appellant then presents its case. The appellant may be represented by counsel, agent, or other representative. To overturn the assessment, the appellant must produce a preponderance of evidence which shows that the valuation appealed from is unequal, excessive, or otherwise improper.

(4)    After the appellant has presented its case, the assessor presents his case showing the basis for the assessor’s valuation. The assessor may rebut evidence presented by the appellant.

(5)    At the conclusion of the assessor’s case, the appellant may rebut any new evidence presented by the assessor. No new evidence other than as necessary to rebut additional evidence presented by the assessor may be presented.

(6)    Both the assessor and the appellant may ask questions but must do so through the presiding officer unless otherwise allowed by the presiding officer.

(7)    When the appellant and the assessor have completed their presentations, the presiding officer or the hearing officer shall close the hearing and no further evidence shall be offered or considered. The board shall then deliberate and decide the appeal, or it may defer decision until a time not later than one day following the last day scheduled for hearing appeals. [Ord. No. 1688A, §7, 11-4-13; Ord. No. 551, §1, 1-6-86; Ord. No. 329A, §11, 4-2-79; Ord. No. 188, §6, 3-3-75. Code 1974 §45.11.104.]

4.45.300 Board of equalization – Rules.

No appeal may be heard in which the appellant has not complied with KGBC 4.45.230(a) and 4.45.240(b). The following rules shall govern the conduct of hearings and decisions of the board of equalization:

(a)    The only grounds for adjustment of assessment are proof of unequal, excessive, improper, or under valuation based on facts that are stated in a valid written appeal or proven at the appeal hearing. If a valuation is found to be too low, the board of equalization may raise the assessment.

(b)    If an appellant fails to appear, the board of equalization may proceed with the hearing in his absence.

(c)    The clerk of the board of equalization shall certify the decisions of the board to the assessor within seven days.

(d)    Except as to supplementary assessments, the assessor shall enter the changes and certify the final assessment roll by June 1.

(e)    All persons giving evidence shall do so under oath or affirmation. The presiding officer, the hearing officer, borough clerk, or notary public shall administer the oath or affirmation.

(f)    The hearing need not be conducted according to technical rules relating to evidence and witnesses. Relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of a common law or statutory rules which makes improper the admission of the evidence over objection in a civil action. The rules of privilege are effective in the same extent that they are recognized in a civil action. Irrelevant and unduly repetitious evidence shall be excluded.

(g)    The presiding officer or the hearing officer may limit the length of the hearing and expedite the proceedings; provided, however, that the appellant and assessor shall both have a reasonable opportunity to present all relevant, nonrepetitive evidence, and shall have a reasonable time for comment thereon. Provided, however, that any exhibits or documentary evidence to be offered by either the appellant or the assessor must be provided to the borough clerk five working days prior to the date of the board of equalization hearing. If a party seeks to introduce an exhibit or documentary evidence which has not been provided at least five working days prior to the board of equalization hearing, the opposing party may object. If there is an objection to such documentary evidence based upon timeliness, the presiding officer shall deny the request and offer the party seeking to introduce the document the choice of proceeding without the document being considered by the board of equalization or having a continuance to a subsequent session of the board of equalization in order to cure the timeliness objection. If the objection is based upon reasons other than timeliness, the presiding officer shall rule on admission of the evidence, and the hearing shall proceed. In either case, the clerk shall retain a copy of the offered evidence as part of the record of the proceedings.

(h)    The appellant bears the burden of proof.

(i)    In its deliberations the board is not bound by parliamentary rules, except its decisions shall be in the form of motions, with specific findings of fact therefor, and the vote shall be taken by “yes” and “no,” which shall be permanently entered on the record of the proceedings. The weighted vote may not be used. A majority vote in the affirmative adopts any motion.

(j)    The said motion, showing said recorded vote, shall be filed with the borough clerk as a public record, and written notice of the board’s decision in each case shall be promptly mailed to the appellants by prepaid first-class United States mail. The service is complete upon mailing.

(k)    A decision, once made, may not subsequently be reconsidered, amended or rescinded by the board, any parliamentary rules or ordinances to the contrary notwithstanding. [Ord. No. 1688A, §8, 11-4-13; Ord. No. 558, §§21, 22, 2-18-86; Ord. No. 329A, §13, 4-2-79; Ord. No. 295, §2, 5-1-78; Ord. No. 188, §7, 3-3-75. Code 1974 §45.11.105.]

4.45.310 Judicial review.

An appellant or the assessor may appeal a determination of the board of equalization to the superior court by filing a notice of appeal from such decision not later than 30 days after the decision is mailed or delivered, as provided by rules of court applicable to appeals from the decisions of administrative agencies. Appeals are heard on the record established at the hearing before the board of equalization. [Ord. No. 551, §2, 1-6-86; Ord. No. 329A, §15, 4-2-79; Ord. No. 196, §§1, 2, 7-7-75; Ord. No. 188, §8, 3-3-75. Code 1974 §45.11.106.]

4.45.320 Supplementary assessment rolls.

The assessor shall include property omitted from the assessment roll on a supplementary roll, using the procedures set out in this chapter for the original roll. [Code 1974 §45.11.110.]

State Law Reference – Similar provisions, AS 29.45.220.

4.45.330 Tax adjustments on property affected by a natural disaster.

(a)    Pursuant to AS 29.45.230, the assembly hereby provides for assessment or reassessment and reduction of taxes for property destroyed, damaged, or otherwise reduced in value as a result of a disaster.

(b)    An assessment or reassessment may be made by the assessor under this section only upon the receipt of a sworn statement of the taxpayer that losses in value exceed $5,000. A reduction of taxes may be made only on losses in value in excess of $5,000 for the remainder of the year following the disaster. On reassessment, the borough shall recompute this tax and refund borough taxes that have already been paid. If the property is in a city which has adopted substantially the same provisions, the city taxes may be recomputed and taxes already paid, but not due, may also be refunded.

(c)    The borough shall give notice of assessment or reassessment under this section and shall hold an equalization hearing as provided in this chapter, except that a notice of appeal must be filed with the board of equalization within 10 days after notice of assessment or reassessment is given to the person appealing. Otherwise, the right of appeal ceases unless the board finds that the taxpayer is unable to comply.

(d)    In this section, “disaster” means a major disaster declared by the President of the United States under the provisions of the Federal Disaster Act of 1950, Title 42 U.S.C., 1855 to 1855g, or other federal law; a disaster declared by the Governor under AS 26.23.010 through 26.23.110 or a catastrophic uninsured loss due to accidental or natural occurrences including but not limited to fire, collapse, earth movement, plane crash, flood, or the like. [Ord. No. 1423, §1, 2-5-07; Ord. No. 558, §23, 2-18-86. Code 1974 §45.11.115.]

4.45.340 Tax levy and rate.

(a)    The power granted to the assembly to assess, levy and collect a general property tax has been exercised by this code; but the rate of levy, the date of equalization and the date when taxes become delinquent shall be fixed by resolution.

(b)    The assembly shall annually determine the rate of levy before June 15. By July 1, the tax collector shall mail tax statements setting out the levy, dates when taxes are payable and delinquent, and penalties and interest.

(c)    Except as required by KGBC 4.45.150, the assembly shall not levy an areawide property tax in excess of eight mills. This limit applies to the sum of the areawide school tax levied under KGBC 4.45.050(a)(1)(a) and any other areawide property tax levied under KGBC 4.45.050(a)(1)(b), but does not include any areawide special assessments, nonareawide levies, or service area levies.

(d)    The eight-mill limitation set forth in subsection (c) of this section may not be amended unless the ordinance amending that section is first ratified by a majority of the voters in the borough voting on the issue at a regular or special election. [Ord. No. 1793A, § 4, 4-18-16; Ord. No. 1010, §1, 1-6-97; Ord. No. 2. Code 1974 §45.11.120; Code 1969 §69.05.035.]

State Law Reference – Similar provisions, AS 29.45.240.

4.45.350 Rates of penalty and interest.

(a)    A taxpayer is required to pay the entire tax imposed by this chapter on or before the due date as set by the assembly. In the event the tax is not paid on or before the due date, the tax shall become delinquent, a penalty as set forth in subsection (b) of this section shall be added to all delinquent taxes, and interest at the rate of one percent per month shall accrue on the amount of unpaid tax, not including penalty, from the due date until paid in full. Payments received after the tax has become delinquent shall be applied first to payment of any collection costs, next to accrued interest, next to penalty charges, and next to the tax. If there is a balance of tax due, additional interest at the rate of one percent per month shall accrue thereon until paid in full.

(b)    The rate of penalty which shall apply to delinquent property taxes shall be as follows:

If Payment Made:

Additional Penalty (Percentage of Tax)

(1) Within seven working days after delinquency date

1% of the amount of tax due

(2) More than seven working days up to and including 30 days after delinquency date

15%

(3) More than 30 days after delinquency date

20%

[Ord. No. 1469, §1, 3-3-08; Ord. No. 1170, §1, 2-5-01; Ord. No. 721, §1, 12-18-89; Ord. No. 554, §1, 1-20-86; Ord. No. 2. Code 1974 §45.11.125; Code 1969 §69.05.045.]

4.45.360 Notice of taxes due and payable – Tax bills.

The tax collector shall, no later than July 1 of each year, compute the taxes and bill each owner the amount of the taxes due. Such bill shall be mailed to the address shown on the assessment records and is complete upon mailing. The tax bill shall contain the names of the owners of record, property description, assessed value of real and personal property separately, the full amount of the tax due for the year, the delinquent date, and penalty and interest on delinquent taxes. The tax bill shall also separately list the amount of school tax due from the levy under KGBC 4.45.050(a)(1)(a); the amount of any other areawide levy for areawide purposes other than schools due from the levy under KGBC 4.45.050(a)(1)(b); the amount of any applicable nonareawide levy; and the amount of any applicable service area levies. The tax bill for city residents shall also include the amount of tax due as a result of the city general tax levy. [Ord. No. 1827, §5, 4-3-17; Ord. No. 1793A, § 5, 4-18-16; Ord. No. 2. Code 1974 §45.11.130; Code 1969 §69.05.040.]

4.45.370 Obligation of taxpayer.

All billings for real and personal property tax shall be mailed to the owner of the property at the address shown on the most current assessment roll on file in the office of the borough assessor.

Failure to receive a billing shall not relieve the owner of the property from the obligation to timely pay all taxes. [Ord. No. 842, §1, 12-16-91. Code 1974 §45.11.135.]

4.45.380 Validity.

Certified assessment and tax rolls are valid and binding on all persons, notwithstanding any defect, error, omission or invalidity in the assessment rolls or proceedings pertaining to the assessment roll. [Code 1974 §45.13.005.]

State Law Reference – Similar provisions, AS 29.45.290.

4.45.390 Tax liability.

(a)    The owner of personal property assessed is personally liable for the amount of taxes assessed against his property. The tax, together with penalty and interest, may be collected in a personal action brought in the name of the borough.

(b)    All general taxes levied by the assembly are liens upon the property assessed as of the date of the levy.

(c)    Property taxes, together with penalty and interest, are a lien upon the property assessed, and the lien is prior and paramount to all other liens or encumbrances against the property. [Ord. No. 558, §24, 2-18-86. Code 1974 §45.13.010.]

State Law Reference – Similar provisions, AS 29.45.300.

4.45.400 Enforcement of personal property tax liens by distraint and sale.

(a)    The lien of personal property taxes may be enforced by distraint and sale of the property. Demand shall be first made in writing of the person assessed for the amount of the tax, penalty and interest, and the sale shall be made at public auction after 15 days’ notice given by posting or publication. The seizure is made by virtue of a warrant issued by the borough clerk to a peace officer. If the property sold is not sufficient to satisfy the tax, penalty, interest and costs of sale, the warrant may authorize the seizure of other personal property sufficient to satisfy the tax, penalty, interest and costs of sale. The tax collector shall enforce this section.

(b)    If the property is sold under this section for more money than is needed to satisfy the tax, the borough shall remit the excess to the former record owner upon presentation of a proper claim. A claim for the excess filed after six months of the date of sale is forever barred. [Ord. No. 558, §25, 2-18-86. Code 1974 §45.13.015.]

State Law Reference – Similar provisions, AS 29.45.310.

4.45.410 Real property tax collection.

(a)    The borough director of finance, as soon as practicable after the delinquent date, shall enforce delinquent property tax liens by annual foreclosure or as otherwise provided by law.

(b)    If the tax on property described in KGBC 4.45.120 or on a taxable interest in 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 district or superior court, in addition to other remedies available to the borough to enforce the lien. [Ord. No. 1765A, §1, 8-17-15; Ord. No. 794, §1, 4-15-91; Ord. No. 558, §26, 2-18-86. Code 1974 §45.13.020.]

State Law Reference – Similar provisions, AS 29.45.320.

4.45.420 Foreclosure list.

(a)    The borough tax collector shall:

(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 within the borough or, if there is no newspaper of general circulation distributed within the borough, post the list at three public places for at least 30 days;

(3)    Within 10 days after the first publication or posting, mail to the last known owner of each property as his 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 and shall include:

(1)    The last-known owner;

(2)    The property description as stated on the assessment roll;

(3)    Years and amounts of delinquency;

(4)    Penalty and interest due;

(5)    A statement that the list is available for public inspection at the clerk’s office;

(6)    A statement that the list has been presented to the superior court with a petition for judgment and decree.

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. [Code 1974 §45.13.025.]

State Law Reference – Similar provisions, AS 29.45.330.

4.45.430 Clearing delinquencies.

During the publication or posting of the foreclosure list and up to the time of transfer to the borough, a person may pay the taxes, together with the penalty, interest and costs. The tax collector shall note payment on the foreclosure list. [Code 1974 §45.13.030.]

State Law Reference – Similar provisions, AS 29.45.340.

4.45.440 List to lienholder.

A holder of a mortgage or other lien on real property may request the tax collector to send by certified mail notice of a foreclosure list that includes the real property. [Ord. No. 558, §27, 2-18-86. Code 1974 §45.13.035.]

State Law Reference – Similar provisions, AS 29.45.350.

4.45.450 General foreclosure.

The borough shall bring one general foreclosure proceeding in rem against the properties included in the foreclosure list. If the owner is unknown, the property is proceeded against as belonging to unknown owner. [Ord. No. 558, §28, 2-18-86. Code 1974 §45.13.040.]

State Law Reference – Similar provisions, AS 29.45.360.

4.45.460 Answer and objection.

A person having an interest in a lot on the foreclosure list may file an answer within 30 days of the date of last publication, specifying his 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. No. 558, §29, 2-18-86. Code 1974 §45.13.045.]

State Law Reference – Similar provisions, AS 29.45.370.

4.45.470 Judgment.

The court shall in a proper case give judgment and decree that the tax liens be foreclosed. It is a several judgment against each lot and a lien on each lot. [Ord. No. 558, §30, 2-18-86. Code 1974 §45.13.050.]

State Law Reference – Similar provisions, AS 29.45.380.

4.45.480 Transfer and appeal.

(a)    Foreclosed properties are transferred to the borough for the lien amount. When answers are filed, the court may enter judgment against and order the transfer to the borough 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 borough clerk. The certified judgment and decree constitutes a transfer to the borough.

(c)    The judgment and decree stops objections to it which could have been presented before judgment and decree.

(d)    Appeal from a judgment and decree of foreclosure, or from a final order in the proceeding, may be taken in the manner provided for appeals in civil actions. [Code 1974 §45.13.055.]

State Law Reference – Similar provisions, AS 29.45.390.

4.45.490 Redemption period.

Properties transferred to the borough are held by the borough 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 KGBC 4.45.530(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. No. 558, §31, 2-18-86. Code 1974 §45.13.060.]

State Law Reference – Similar provisions, AS 29.45.400.

4.45.500 Effect.

Receipt of redemption money by the borough releases the judgment obtained under KGBC 4.45.470. 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. No. 558, §32, 2-18-86. Code 1974 §45.13.065.]

State Law Reference – Similar provisions, AS 29.45.410.

4.45.510 Additional liens.

If a property included in a foreclosure list is removed after payment of delinquencies or redemption by another lienholder, the payment represented by receipt for payment constitutes an additional lien on the property, collectible by the lienholder in the same manner as the original lien. [Code 1974 §45.13.070.]

State Law Reference – Similar provisions, AS 29.45.420.

4.45.520 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 his permission or control, the borough may declare an immediate forfeiture of the right to possession. [Ord. No. 558, §33, 2-18-86. Code 1974 §45.13.075.]

State Law Reference – Similar provisions, AS 29.45.430.

4.45.530 Expiration.

(a)    At least 30 days before the expiration of the redemption period the clerk or the clerk’s designee 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 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 a person in the properties will be forfeited forever to the borough. The notice appears once a week for four consecutive weeks in a newspaper of general circulation distributed in the borough. If there is no newspaper of general circulation distributed in the borough, the notice is 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 $10,000, 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. The right of redemption expires 30 days after the date of the first notice publication.

(b)    Costs incurred in the determination of holders of mortgages and other liens of record and costs of notice publication incurred by the borough under subsection (a) of this section are a lien on the property and may be recovered by the municipality. [Ord. No. 558, §34, 2-18-86. Code 1974 §45.13.080.]

State Law Reference – Similar provisions, AS 29.45.440.

4.45.540 Deed to borough or city.

(a)    Unredeemed property in the area of the borough outside all cities is deeded to the borough by the clerk of the court. Unredeemed property in a city is deeded to the city subject to the payment by the city of unpaid borough 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 borough or the city clear title, except for prior recorded tax liens of the United States and the State.

(c)    If unredeemed property lies in a city and if the city has no immediate public use for the property but the borough does have an immediate public use, the city shall deed the property to the borough. If unredeemed property lies in the borough outside all cities and if the borough does not have an immediate public use for the property but a city does have an immediate public use, the borough shall deed the property to the city.

(d)    No 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. No. 558, §35, 2-18-86. Code 1974 §45.13.085.]

State Law Reference – Similar provisions, AS 29.45.450.

4.45.550 Sale of foreclosed properties.

(a)    The borough assembly or city council shall determine, by ordinance, whether foreclosed property deeded to the city or borough shall be retained for a public purpose. The ordinance shall 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 rolls.

(b)    Tax-foreclosed property conveyed to the borough or 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 borough or city, by ordinance, shall determine that a public need does not exist. The ordinance shall 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 rolls of the borough.

(d)    The provisions of subsection (c) of this section do not apply with respect to property that has been held by the municipality for a period of more than 10 years after the close of the redemption period. [Ord. No. 558, §36, 2-18-86. Code 1974 §45.13.090.]

State Law Reference – Similar provisions, AS 29.45.460.

4.45.560 Repurchase by record owner.

(a)    The record owner at the time of tax foreclosure of property acquired by the borough or city or the assigns of that record owner, may, within 10 years and before the sale or contract of sale of the tax-foreclosed property by the borough or city, repurchase the property. The borough or city shall sell the property for the full amount applicable to the property under the judgment and decree, with interest at 12 percent per year from the date of entry of the judgment of foreclosure to the date of repurchase, delinquent taxes assessed and levied as though it had continued in private ownership, and costs of foreclosure and sale.

(b)    After adoption of an ordinance providing for the retention of tax-foreclosed property by the city or borough for a public purpose, the right of the former record owner to repurchase the property ceases. [Ord. No. 558, §37, 2-18-86. Code 1974 §45.13.095.]

State Law Reference – Similar provisions, AS 29.45.470.

4.45.570 Proceeds of tax sale.

(a)    On sale of foreclosed real or personal property the borough shall divide the proceeds, less cost of collection, between the borough and the city having unpaid taxes against the property. The division is in proportion to the respective municipal taxes against the property at the time of foreclosure.

(b)    If tax-foreclosed real property that has been held by the borough or city for less than 10 years after the close of the redemption period and never designated for a public purpose is sold at a tax-foreclosure 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 borough or city of foreclosing and selling 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 borough or 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 subsection 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 borough or 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. No. 558, §38, 2-18-86. Code 1974 §45.13.100.]

State Law Reference – Similar provisions, AS 29.45.480.

4.45.580 Payment of taxes upon public utilization.

If a city or borough holds or takes title to tax-foreclosed property for a public purpose, the city or borough shall satisfy unpaid taxes and assessments against the property held by other municipalities, with accrued interest but without penalty. If the amount required to satisfy the unpaid taxes and assessments exceeds the assessed valuation of the property, the city or borough shall pay the other municipalities the assessed valuation, which shall be divided between the other municipalities in proportion to their respective taxes and assessments against the property at the time of foreclosure. [Code 1974 §45.13.105.]

State Law Reference – Similar provisions, AS 29.45.490.

4.45.590 Refund of taxes.

(a)    If a taxpayer pays taxes under protest, the taxpayer may bring suit in the superior court against the borough for recovery of the taxes. If judgment for recovery is given against the borough, or, if in the absence of suit, it becomes obvious to the borough assembly that judgment for recovery of the taxes would be obtained if legal proceedings were brought, the borough 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 or otherwise exceeds the amount due, and the borough, on audit of the account in question, is satisfied that this is the case, the borough 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 borough assembly may correct manifest clerical errors at any time. [Ord. No. 558, §39, 2-18-86; Ord. No. 273, §2, 11-21-77. Code 1974 §45.13.110.]

State Law Reference – Similar provisions, AS 29.45.500.

4.45.600 Change in legal description and prepayment.

(a)    Prior to the levy of taxes, the borough may accept prepayment of estimated taxes.

(b)    If a replat or other action regarding a parcel results in a change in the legal description of a parcel prior to payment of taxes for the year in which the change occurs, the assessed value attributable to the parcel existing as of January 1 of the year in which the change occurs (original parcel) may be apportioned between the parcel or parcels which contain all or part of the original parcel. If a prepayment was tendered under subsection (a) of this section, after taxes are levied any excess shall be refunded to the party submitting prepayment. Any deficiency, whether related to a replat or caused by some other circumstance, may be collected as provided by law. [Ord. No. 985, §1, 3-18-96; Ord. No. 984, §1, 12-4-95. Code 1974 §45.13.115.]