Property Tax Exemptions in Alaska

Revised July 1, 2013

Introduction

Alaska has two kinds of property tax exemptions. These are 1) exemptions that are required by law, and 2) optional exemptions that a taxing authority may authorize. All municipalities must grant exemptions that are required or mandated by state law. Optional exemptions will vary depending on whether and what kind of additional exemptions the taxing authority has enacted. A review of the department’s publication,  "Alaska Taxable" will show the optional exemptions, but it is a good idea to contact the local assessor's office (see "Directory of Tax Jurisdictions") for an up-to-date listing of those exemptions that may be available in each municipality.

Narrative

In general, taxation is more common than exemptions. In order for property to be exempt from taxes, the law must specifically exempt it.

The State of Alaska Constitution, Article IX, Section 4, provides that, subject to conditions and exceptions provided by law, property of the state and its political subdivisions and property used for nonprofit, religious, charitable, cemetery, or educational purposes is exempt from taxation and provides that other exemptions may be granted by law. In addition to those listed above, AS 29.45.030 provides for additional mandatory exemptions, which are spelled out in statute.

AS 29.45.050 identifies optional exemptions that, if the taxing authority chooses to adopt, must be enacted by ordinance and/or ratified through an election.

All property owned by a non-profit is not necessarily exempt from taxes. Being owned by a non-profit organization is only one of the criteria that must be met. In Alaska, as with many other states, it is the use of the property that determines whether it is exempt. Contact the local assessor's office (see "Directory of Tax Jurisdictions") to find out whether a particular use of property is exempt.

Frequently Asked Questions

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Applicable Laws

State of Alaska Constitution

  • Article IX, Section 1 - taxing power, prohibitions
  • Article IX, Section 2 - non-discrimination in tax rate
  • Article IX, Section 3 - assessment standards, prescribed by law
  • Article IX, Section 4 - exemptions, authority to prescribe additional exemptions by law
  • Article IX, Section 5 - government property, taxability of private use of otherwise exempt property
  • Article X, Section 2 - dedication of taxing powers to boroughs and cities only

Alaska Statutes

  • AS 29.10.200 - Limitation on home rule powers, taxation, assessment, collections, exemptions
  • AS 29.25.010 - Acts required to be by ordinance, levy taxes, establish penalty
  • AS 29.45.010 - Authority to levy a property tax, areawide, nonareawide, service area, home rule, first class second class
  • AS 29.45.020 - Taxpayer notice, format, delivery
  • AS 29.45.030 - Taxable property and mandatory exemptions, application for exemption, ordinance establishing procedures and deadlines, waiver for late application, state reimbursement for exemptions, definitions
  • AS 29.45.040 - Property tax equivalency payments, application process
  • AS 29.45.046 - River habitat protection credit, eligibility, calculation method, exemptions
  • AS 29.45.050 - Optional exemptions, ordinance ratification, mandatory cap on exemptions, home-rule provisions
  • AS 29.45.055 - Levy of flat tax on personal property exempted from ad valorem tax
  • AS 29.45.060 - Farm or agricultural land
  • AS 29.45.062 - Land subject to a conversation easement
  • AS 29.45.065 - Assessment of private airports open for public use.
  • AS 29.45.070-.070 - Mobile homes, classification
  • AS 29.45.080 - Tax on oil and gas production and pipeline property, DOR valuation

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  • AS 29.45.090 - Tax Limitation and mill rate equity
  • AS 29.45.100 - No limitation to pay for bonds
  • AS 29.45.103 - Taxation records, availability
  • AS 29.45.105 - Errors in taxation procedures, state assessor notice, appeal
  • AS 29.45.110 - Full and true value, assessment date, low income housing credit valuation and exemption
  • AS 29.45.120 - Returns
  • AS 29.45.130 - Independent investigations
  • AS 29.45.140 - Violations; authorization to prescribe penalties by ordinance
  • AS 29.45.150 - Reevaluation
  • AS 29.45.160 - Assessment roll
  • AS 29.45.170 - Assessment notice
  • AS 29.45.180 - Corrections
  • AS 29.45.190 - Appeal
  • AS 29.45.200 - Board of Equalization
  • AS 29.45.210 - Hearing
  • AS 29.45.220 - Supplementary assessment rolls
  • AS 29.45.230 - Tax adjustments on property affected by a natural disaster
  • AS 29.45.240 - Establishment of levy and determination of rate
  • AS 29.45.250 - Rates of penalty and interest
  • AS 29.45.550 - Cities outside boroughs
  • AS 29.45.560 - Cities inside boroughs
  • AS 29.45.580 - Differential tax zones
  • AS 29.45.590 - Limited property taxing power for second class cities
  • AS 29.45.600 - Combining property tax with incorporation of a second class city
  • AS 29.60.010 - State revenue sharing tax equalization formula
  • AS 29.60.080 - Definitions
  • AS 43.56.010 - Levy of municipal tax on oil and gas exploration, production, and pipeline property, limitation on tax assessment rate
  • AS 43.56.020 - Exemptions on levy of municipal tax on oil and gas exploration, production, and pipeline property
  • AS 43.56.030 - Tax in lieu of
  • AS 43.56.040 - State assessment review board
  • AS 43.56.060 - Commerce assessment of oil and gas and pipeline property subject to taxation
  • AS 43.82.210 - Payment in lieu of taxes on stranded gas development projects

Regulations

  • 3 AAC 131.010-.020 - certification and notification of population for oil & gas property tax limitations, alternate population determination methods
  • 3 AAC 131.030 - definitions
  • 3 AAC 135.010-.085 - senior citizen and disabled veteran exemptions, method of application and forms, deadlines and calculations, eligibility of spouse
  • 3 AAC 135.095 - effect of exemption on other legal encumbrances
  • 3 AAC 135.110 - appeal
  • 3 AAC 135.120 - definitions
  • 3 AAC 136.010-.045 - senior citizen and disabled veteran property tax equivalency payment forms, rent verification, eligibility, eligible costs, age verification, veteran's disability verification, computation of payment
  • 3 AAC 136.060 - definitions
  • 3 AAC 138.010 - 020 farm and agricultural land assessment and deferment application forms, income verification
  • 3 AAC 138.030 - appeal
  • 3 AAC 138.040-.050 - municipal maintenance of agricultural land records, confidentiality
  • 3 AAC 138.060 - definitions
  • 3 AAC 139.010 - state assessor review of written complaint, review of municipal records
  • 3 AAC 139.020 - state assessor notification of error
  • 3 AAC 139.030 - appeal of state assessor's determination
  • 3 AAC 139.900 - definitions
  • 15 AAC 56.005-.010 - oil and gas exploration production and pipeline property tax, filing property statement with state, notice of assessment, municipal notification
  • 15 AAC 56.015-.045 - standing to appeal, appeal to state, appeal to assessment review board, assessment review board hearing, supplementary assessments
  • 15 AAC 56.050-.065 - credit and refund of oil & gas property tax, payment due date,
  • 15 AAC 56.070 - average per capita full and true value determination and notification
  • 15 AAC 56.075-.110 - taxable oil & gas property, exploration, production, pipeline property
  • 15 AAC 56.120 - intangible drilling expenses
  • 15 AAC 56.130 - preservation of municipal powers