Property tax relief for seniors in Alaska

How property tax works in Alaska

Alaska property taxes are set and collected by local governments: cities and boroughs. Not every area charges property tax. State law, though, sets rules that every local government with a property tax must follow. The most important one for older homeowners is the senior citizen exemption. The state's Division of Community and Regional Affairs, in the Department of Commerce, Community, and Economic Development, explains these rules for local governments.

The senior citizen exemption

Who qualifies

• You are 65 or older, and
• The home is your primary residence, the place you live as your main home.

The same exemption is given to disabled veterans with a service-connected disability rated 50% or more, at any age.

What it is worth

Your local government must exempt up to the first $150,000 of assessed value on your primary home. That part of your home's value is not taxed.

• If your home is assessed at or below that amount, you may owe no property tax on it at all.
• If it is assessed above that amount, you pay tax only on the value above it.

This exemption is required by state law (Alaska Statutes 29.45.030(e)). Every municipality with a property tax must grant it.

Local extras

State law (AS 29.45.050) also lets cities and boroughs choose to do more:

• Raise the senior exemption above the first $150,000.
• Add an optional exemption of up to $50,000 on a primary residence.

These extras must be passed by local ordinance, and some need voter approval. Ask your local assessor what your city or borough offers. For example, the Kenai Peninsula Borough has an older, grandfathered exemption for people with disabilities.

Renters: property tax equivalency payments

You do not pay property tax directly when you rent, but part of your rent goes to your landlord's tax bill. Alaska law (AS 29.45.040) provides for property tax equivalency payments to qualifying renters. State rules (3 AAC 136) cover the forms, proof of rent, who qualifies, age and disability proof, and how the payment is figured.

Ask your local assessor's office whether your area makes these payments and how to apply.

How to apply

1. Find your local assessor's office. It is the city or borough office that values property. The state's "Directory of Tax Jurisdictions" on the Division of Community and Regional Affairs website lists them.
2. Get the application form. The local assessor's office should have the senior exemption form.
3. Check the deadline. Each local government sets its own deadline. Ask for it as soon as you turn 65 or move into a new home.
4. Fill it out and include any proof the form asks for. State rules (3 AAC 135) set how applications, deadlines and spouse eligibility work.
5. Keep a copy of your application and any letter you get back.

After you apply

• If you are late, a municipality may waive the deadline "for good cause." Ask right away and explain why.
• If you are denied, state rules (3 AAC 135.110) give you a way to appeal. Your denial letter should explain how and by when.
• Each year: Ask your assessor whether you must reapply each year or only report changes. This varies by local government.
• If you move, the exemption is only for your primary residence, so ask the assessor for your new home how to apply.

Things people miss

• Not applying. The exemption is required by law, but you must still apply for it.
• Assuming your local deadline matches a neighbor's area. Deadlines are set locally.
• Not asking about local extras. Your area may offer more than the state minimum.
• Renters not asking. Equivalency payments may be available where you live.

Other help with costs

The property tax exemption is not based on income. If your income is low, also look at Alaska's Senior Benefits cash program for people 65 and over, and the Heating Assistance Program. Both are explained in all benefits in Alaska.

Free help

• Your local assessor's office for the exemption, forms and deadlines.
• Aging and Disability Resource Centers: 1-855-565-2017, for help finding local services and filling out forms.

If you get SSI or Social Security, those do not affect the senior exemption, which has no income test.

Phone numbers: Free help lines for Alaska agencies

Check what you may qualify for