Sec. 29.53.060. Full and true value. (a) The assessor of a municipality shall assess property at its full and true value as of January 1 of the assessment year, except as provided in this section and sections 30, 35, and 160 of this chapter. 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 buyer and a willing seller both conversant with the property and with prevailing general price levels.

In the court case, Hoblit v. Greater Anchorage Area Borough (Sup. Ct. Op. No. 636) the court ruled that the borough has discretion to appraise by whatever recognized method of valuation it chooses, so long as there is no fraud or clear adoption of a fundamentally wrong principle of valuation. In 1963, the Local Affairs Agency, predecessor to the Division of Local Government Assistance, published the "Property Appraisal Manual for Alaska Assessors" which contains recommended methods and standards of appraisal. The methods and procedures as outlined in this manual were generally adopted and used by the various municipalities. In 1970 the agency published the "Residential Appraisal Cost Manual for Alaska Assessors." This manual was a complete revision of the residential section of the original manual. It contained 1970 construction cost data, a wider range of property types, specifications and area adjustment factors.

Answer 6

Assessment-sale ratio studies are conducted annually by the Division of Local Government Assistance and published in "Alaska Taxable, Municipal Property Assessments and Full Value Determinations." Copies of this publication are forwarded to State and municipal officials and are also available to other interested persons upon request. The assessment level for vacant and improved property and the overall district ratio is compiled for each taxing jurisdiction. The degree of assessment proficiency is also measured for each district by computing the co-efficient of dispersions.

Answer 7

No State agency is charged with the supervision of local property tax assessments. The Division determines annually the full value of taxable real and personal property within the State's 29 local school districts.

AS 29.17.140. Determination of full and true value by the Department of Community and Regional Affairs. To determine the equalized percentage to be applied to basic need under sec. 21 of this chapter and the matching ratio for required local effort under sec. 71 of this chapter, the Department of Community and Regional Affairs, in consultation with the assessor for each district, shall determine the full value of taxable real and personal property in each district ***

Although the department has no statutory authority to regulate or adjust local property assessments, the division's responsibility under

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the public school foundation program has provided each district with comprehensive information concerning its tax base and has directly stimulated borough and city districts toward more uniform and equitable local property assessments and increased excellence in the administration of the property tax. The Office of the State Assessor. within the Division, is responsible for the Department's Full Value Determination. The State Assessor is supported by a research assistant and a statistical clerk. The requested fiscal year 1974 budget for the State Assessor's office is $68,300.

Answer 8

Yes, considerable change in size of Alaska municipalities has occurred in the past decade. The structure of Alaska local government has changed from independent school districts, public utility districts and cities to unified home rule municipalities, organized boroughs and cities. Independent school and public utility districts were absorbed into the larger area wide borough form of governments.

Organized boroughs and unified municipalities are school districts and may levy and collect taxes on an area wide basis. Property taxes levied by cities, which are located within them, are collected by the areawide municipality and returned to the cities in full. Home rule and first class cities located outside organized boroughs may levy and collect taxes for education and municipal services. Second class citiesformerly fourth class-may levy a limited rate of tax for municipal services only. Education is provided by the State without levy to second class cities and unincorporated communities located outside an organized borough.

As of December 31, 1972, there were two unified home rule municipalities, nine organized boroughs and 122 cities organized under the laws of Alaska. Of these cities 95 are located outside of the corporate limits of organized boroughs as follows: 4 of the 12 home rule cities, 15 of the 20 first class cities and 76 of the 90 second class cities-formerly fourth class. There were seven second class cities organized during the 1972 calendar year. The North Slope Borough was incorporated on July 1, 1972 (see attached map). Six of the State's 29 local school districts did not levy and collect property taxes in 1972.

Answer 9

Yes, ad valorem taxes in general are collected by municipalities on nonbusiness vehicles, aircraft and boats and vessels. Intangibles are however exempt from ad valorem taxation in Alaska. Administrative policy concerning the assessment of personal property differs substantially from one taxing jurisdiction to another. Local political influences and economics in administration are the two primary causes for local exemption of one or more classes of personal property.

All municipalities which levy and collect taxes levy a tax on mobile homes. Exemptions range from the exemption of all personal property to the exemption of only one class of personal property.

Answer 10

No. The property tax rate of levy which is established annually by the borough assembly is applied to the assessed value of all property which is taxed by the borough.

Answer 11

Yes. Required exemptions are itemized in AS 29.53.020 as follows: 1. Government owned property.

2. Property used exclusively for nonprofit religious, charitable, cemetery, hospital or educational purposes.

3. Organizations composed of veterans with a minimum of 90days active service in the armed forces of the United States. 4. The real property of qualifying senior citizens.

5. An option to municipalities is provided for exemption of private property used exclusively for community purposes and for historic sites.

Optional exemptions and exclusions are itemized in AS 29.53.025 as follows:

(a) Municipalities may exclude or exempt or partially exempt residential property from taxation by ordinance ratified by the voters at a regular or special election.

(b) Municipalities may be ordinance (1) classify boats and vessels for purposes of taxation and may establish the assessed valuation of boats and vessels on the basis of their registered or certified net tonnage; a tax based upon a tonnage valuation shall not exceed $5 a year for a boat or vessel of less than 5 net tons and shall not exceed $15 a year for a boat or vessel of more than 5 net tons; (2) classify and exempt from taxation

(A) the household furniture over $500 in value and the effects of the head of a family or a householder; and

(B) the property of an organization 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; and

(C) historic sites, buildings and monuments.

(c) The provisions of (a) of this section notwithstanding, (1) a home rule or first- or second-class borough may, by ordinance adopted without weighted voting, adjust its property tax structure of a city within it, including but not limited to, excluding personal property from taxation, establishing exemption, and extending the redemption period; (2) a home rule or first class city shall have the same power to grant exemptions or exclude property from borough taxes that it has as to city taxes, provided that the

exemptions or exclusions have been adopted as to city taxes and further provided that the city appropriate to the borough sufficient money to equal revenues lost by the borough because of the exemptions or exclusions, the amount to be determined annually by the assembly without weighted voting. (d) Exemptions or exclusions from property tax which have been granted by home rule municipalities in addition to exemp

tions authorized or required by law, and which are in effect on September 10, 1972, and not later withdrawn are not affected by this Act.

Not all municipalities make an effort to appraise and keep current values on exempt property, therefore, there have been no statewide. statistics compiled or printed as of this date.

Answer 12

Yes. Alaska statutes provide for preferential assessment of farm use land.

AS 29.53.035. Farm or agricultural lands. (a) Farm use lands shall be assessed on the basis of full and true value for farm use, and shall not be assessed as if subdivided or used for some other nonfarm purpose. The assessor shall maintain separate assessment records evaluating the farm use land for other than farm use purposes, where applicable. Should the farm use land be sold, leased, or otherwise disposed of, for other than farm use purposes, the owner shall be liable to pay the additional tax for the preceding 2 years, and the applicable portion of the current tax year, as though the land had not been assessed for farm use purposes.

(b) An owner of farm use land must, to secure the assessment, make application to the assessor before February 1 of each year in which the assessment is desired. The application shall be made upon forms prepared and supplied by the assessor and shall include information which may reasonably be required to determine the entitlement of the applicant.

(c) In this section "farm use" means the use of land for raising and harvesting crops or for the feeding, breeding, and management of livestock or for dairying or another agricultural use or any combination thereof and includes the preparation of the products raised on the farm use land and disposal by marketing or otherwise. It includes the construction and use of dwellings and other buildings customarily provided in conjunction with the farm use. To be farm use land, the owner must be actively engaged in farming the land, and derive at least one-fourth of his yearly gross income from the farm use land. The provisions of this section do not apply to land respecting which the owner has granted, and has outstanding, a lease or option to buy the surface rights. (§ 2 ch. 118 SLA 1972)

Answer 13

Yes, a program of property tax relief for qualifying senior citizens was enacted in June 1972 by the second session of the seventh State legislature.

The first year of operation of the program will be 1973, therefore at this time there is no information available concerning the number of qualifying applicants or the dollar amount of the tax which will be exempt from taxation.

AS29.53.020 (e) After January 1, 1973, the real property owned and occupied as a permanent place of abode by a resident 65 years of age or over whose gross annual income totals less than $10,000 is exempt from taxation of the assessed value of the real property. Only one exemption may be granted with respect to the same property and, if two or more persons are eligible for an exemption with respect to the same property, the parties shall decide between or among themselves which shall receive the benefit of the exemption; however, in the case of more than one party eligible for an exemption with respect to the same property, the total combined gross annual income of the parties may not exceed $10,000. No real property may be exempted under this subsection which the assessor determines, after notice and hearing to the parties concerned has been conveyed to the applicant primarily for the purpose of obtaining the exemption. The determination of the assessor is appealable under AS 44.62.560-44.62.570.

(f) No exemption may be granted except upon written application for the exemption on a form prescribed by the State assessor for use by local assessors. The claimant must file the application no later than January 15 of the assessment year for which the exemption is sought and must file a separate application for each assessment year in which the exemption is sought. If an application is filed within the required time and is approved by the assessor, he shall allow an exemption in accordance with the provisions of this section. The assessor may at any time require proof in the form he considers necessary of the right and amount of an exemption claimed under this section, and in that respect may, as one form of proof, require authorization from the taxpayer to verify gross income level by reference to gross income shown in the latest State income tax return available for all or part of the assessment year for which an exemption is sought.

(g) The State shall reimburse a borough or city, as appropriate, for the real property tax revenues lost to it by the operation of (e) of this section.

(h) Nothing in (e)-(i) of this section affects similar exemptions from property taxes granted by municipalities on September 10, 1972, or prevents municipalities from granting similar exemptions by ordinance as provided in section 25 of this chapter. However, under (e)-(i) of this section only the