Some Kenai Peninsula homeowners could pay less in property taxes under a ballot proposition going before voters in October. That’s after borough assembly members signed off on the proposition earlier this month.
Currently, eligible property owners can exempt the first $50,000 of their property’s assessed value from borough taxes. If the ballot proposition passes, that exemption would increase to $75,000.
Outgoing assembly member James Baisden sponsored the proposition. He says the proposal is a response to increasing tax assessments in recent years.
“I would do more if we could, because I think we need more tax relief,” he said. “This is the minimum that we can do to try to help with that. You're going to see increased values next year. There's no doubt.”
The borough’s finance department estimates the exemption change could cost the borough about $2 million in money it would otherwise get in residential property taxes. Some assembly members were worried that loss could force them to recoup the money in other ways.
But Borough Mayor Peter Micciche says the borough can absorb the cost. That’s even after reducing the borough’s base property tax rate earlier this year. And he says it would help seniors whose property tax values have recently surpassed the $350,000 exemption limit.
“It's, you know, a relatively low number that could provide some relief to those that have not had to pay taxes since they became 65 that are now,” he said. “ … It also sort of corrects some of the escalation that we've seen, because the escalation has been exorbitant the last four years.”
State law restricts how much boroughs can exempt from property taxes. Three years ago, state lawmakers raised the maximum exemption amount to $75,000. The ballot proposition would align the borough’s exemption to that new limit.
The borough offers additional tax exemptions for other groups, like seniors and disabled veterans. Eligible seniors can also get up to $300,000 in assessed value exempt.
The proposition is one of four that will go before all borough voters in October. One will ask whether the borough should hand-count ballots. Another seeks to tie the borough’s sales tax cap to inflation.
Election day is Oct. 7. The voter registration deadline is Sept. 7. Voters can check their registration status on the Alaska Division of Elections website.
