Frequently Asked Questions
Frequently Asked Title Questions:
Frequently Asked Assessment Questions:
Frequently Asked Board of Equalization Questions:
Frequently Asked Boat Owner Questions:
Other Frequently Asked Questions?
In Alaska, when a married couple takes title together on a piece of property and do not delineate seperate interests on the deed, they are assumed to be Tenants by the Entirety. This means that when one spouse dies, the other automatically succeeds to the whole interest in the property as long as they were married at the time of the death. Once a copy of the death certificate has been sent to the Borough and the parcel has been reviewed for all these criteria, the spouse will be removed from the tax rolls.
In Alaska, only married couples can take title together as Tenants by the Entirety. If your deceased parent were still married, their spouse would receive all of the interest in the property with proof from a Death Certificate. (See above) If widowed or single, the property goes to their Estate and a deed from the Personal Representative is needed to transfer the property. In order to determine if the estate needs to be probated, you should contact an attorney.
When 2 or more unmarried persons take title, this is known as Tenants in Common and each are assumed to have an undivided ˝ interest unless other percentages are delineated. When 1 owner dies, the heirs of their estate will receive their interest. To transfer property out of an estate, a deed needs to be executed by the Personal Representative of their estate. An attorney should be contacted for the proper procedures for probating the estate.
Alaska State Statutes prohibits us from adding, removing and/or changing names unless we receive a recorded deed. You may wish to consult an attorney or hire the title company to assist you with the changes you wish to make on the deed. Once the changes are made, the deed must be recorded. The individual recording district will send us a copy automatically and we will then change our records.
Alaska State Statutes prohibits us from adding, removing and/or changing names unless we receive a recorded Deed. You may wish to contact an attorney or title company to assist you with the changes you wish to make on the Deed. Once the changes are made, the Deed should be recorded. The individual recording district will send us a copy automatically and we will then change our records.
To add someone as a Primary Owner on your parcel, you have to record a deed. You can get a blank deed at most office supply stores or from a title company. You can also contact your attorney to draw up a deed for you. The deed must be signed & notarized. To record a deed, you may mail or take the notarized deed to the District Recorder where the property is located. The deed must contain the addresses of the Grantors and Grantees. Contact the District Recorder or one of the title companies for other recording requirements. Include a check for the recording costs: $20 for the first page and $5 for each subsequent page.
State law requires Assessors to value all taxable property at 100% of it's true and fair market value in dollars, according to the highest and best use of the property. (AS 29.45.110) Market Value means the amount of money that a willing buyer, not obligated to buy would pay a willing seller, not obligated to sell, taking into consideration all uses to which the property is adapted and might be applied. If the taxpayer does not think that the value is fair market they have the right to appeal to the Board of Equalization 30 days from the date the assessment notice is mailed. You may appeal for the current year only.
Appraisers use three approaches to determine the market value of your property: market approach, cost approach and income approach.
Market Approach
The market approach uses sales of similar property as evidence of market value.
Because no two properties are exactly alike the comparable properties' sales are
adjusted by adding or subtracting for features that are different than the
subject property. Adjustments may also be made for time and terms of the sale.
The market approach is most suitable for the appraisal of single-family
dwellings and vacant land when there are frequent sales. This approach is
sometimes used for multi-unit dwellings and commercial property.
Cost
Approach
The cost approach is based on the idea that the value of an existing property is
the value of the land plus the replacement cost of the improvements minus
depreciation. Depreciation is not the number of years the improvements have been
used; it is the loss in value due to physical deterioration, functional and/or
economic obsolescence.
Income Approach
Currently the staff at the Kenai Peninsula Borough Assessing Department is on a six to seven year cycle. To ensure equity in each area the Appraisers and Technicians go door-to-door so all neighbors are updated at the same time. During the summer of 2004 the staff will be in the Homer/Anchor Point area to update the property records for tax year 2005.
If property is inspected more often it could be the result of one or a combination of the following:
 | New Construction |
| Board of Equalization Appeal |
| Appraisal Review |
| Sales Verification |
| Property line changes |
The laws of the State of Alaska require the Assessor or his authorized employees to periodically inspect all real property to determine its true and fair market value. (AS 29.45.130b) The assessor or agent of the assessor may enter the property grounds to conduct a physical exterior inspection of the structures during reasonable hours. An interior inspection may take place if the structure is under construction, or if the person in actual possession of the structures gives permission or under court order.
Alaska State law does not provide for any limit on the amount a property value can increase in order to bring the value current with today’s market. Property should be valued at or near 100% of market value.
Changes in property values may occur for a number of reasons:
| Valued below 100% of market value in the previous year. |
| Entire area values may raise or lower a certain percentage if sales indicate that prior assessed values were above or below market. An example of this would be where roads, paving, gas lines or electricity have been extended and the sales across the board appear to be higher. |
| Have had new construction value added to the property. |
| Fluctuations in real estate sales market up or down. |
| Renovation and modernization. |
| Property located in an area that has recently been physically inspected by a Borough appraiser and appraisal changes have been made due to changed property conditions, corrections of previous appraisal errors or omissions, etc. |
| Change in tax status since the previous year (i.e. property no longer qualifies for a Senior Citizen or Disabled Persons Exemption). |
Yes, the Assessor is required by law to assess property at its fair market value regardless of its percentage of completion. The appraiser will estimate the percentage of completion by utilizing a chart that assigns a percentage to each phase of construction.
Yes, mobile homes and trailers are classified as real property per AS 29.45.070 and KPB 5.12.160 with the exception of travel trailers that have current registration tags as provided in AS 28.10.431 (g). Utility sheds, conex-type storage units and other relatively permanent structures that are on or attached to the land are considered improvements and are taxable.
No. State of Alaska Statutes allow the assessor or field appraisers to inspect properties even if "No Trespassing" signs are posted. If the owner of the property asks the appraiser to leave the premises, the appraiser will leave and estimate the property attributes and size from the road and value the structure based on those estimates.
If the taxpayer does not think that their property value is fair market value, they may request an informal hearing with the Assessor or the Assessor’s agent or they may appeal directly to the Board of Equalization. Both of these requests must be filed within 30 days of the mailing date of the Notice of Assessment or the mailing date of a value change. After an informal hearing, the property owner may still appeal to the Board of Equalization if not satisfied with the Assessors valuation as long as it is within 30 days of the mailing date of the Notice of Assessment or the mailing date of a value change notice. The appeal must be in writing and must provide specific reasons why he/she believes the Assessor's value does not reflect the true and fair market value (AS 29.45.110). The only grounds for an adjustment of the assessment are proof of unequal, excessive, improper or under valuation based on facts. The Appellant bears the burden of proof. (AS 29.45.210) The percentage of assessment increase, personal hardship, the amount of tax, and other matters unrelated to the market value such as road maintenance cannot be considered.
If the taxpayer fails to meet the 30 day requirement to appeal, the taxpayer may request a finding of inability to comply based upon a serious condition or event. (KPB 5.12.050 C) The written request must be filed with the Borough clerk within 14 days after the taxpayer became aware of the reason to file or within 14 days after the taxpayer was able to file due to a serious condition or event. The Chair of the Board of Equalization shall review the request and make a determination if it meets the requirements. To obtain an appeal form, contact the Kenai Peninsula Borough Assessing Department or the Kenai Peninsula Borough website.
Yes. Any order of the Board of Equalization changing the Assessor's original value for a property will have effect only for the single assessment year for which the valuation appeal was made.
No, most field technicians and appraisers are unaware of budget concerns. The job of the field inspection is to make sure the department has the most accurate information on the property. No matter where the property is located in the Borough, all property information is collected on the same forms, in the same manner, to assure equity.
The department usually looks at 450 to 500 home, cabin, and mobile home sales each year. Information on about 500 land sales is also collected every year. This data is analyzed. If there is statistically enough information to indicate a percentage increase or decrease then a change is made borough wide. There are currently six different styles of homes that we study such as “ranch”, “two story”, ”split entry”, etc. The most common style to sell is the ranch. We typically have enough ranch sales reported to follow their sales trend each year. The other styles may require collecting data over several years until the department is sure the trend is going up or down. The result of this is that several years can go by until a change is made to “catch up” to the market. The increase or decrease noted by the taxpayer may have been an accumulation of several years of depreciation or appreciation.
Taxpayers must file a personal property filing on their vessel with the Kenai Peninsula Borough on or before February 15th annually. Statements are mailed directly to all prior year filers. New filers must obtain the Personal property filing from the Kenai Peninsula Borough Assessor’s offices in Soldotna and Homer or at the various City Hall offices.
Tax
“Situs” means the place where an item of personal property is located.
Vessels that have been, or are usually, normally or regularly kept or used
within the Kenai Peninsula Borough for 90 days or more in the 12 months
preceding the January 1st of any tax assessment year are taxable. Vessels that
meet situs requirements are subject to the Kenai Peninsula Borough vessel flat
tax. These provisions apply only to the Borough portion of the tax. Personal
property located within city limits will be subject to the applicable city
ordinances.
All
vessels that are located within the city limits of Seward, Seldovia and Kenai
are taxed according their full assessed value in addition to the Kenai
Peninsula Borough flat tax portion. Vessels 20’ and over located within the
city limits of Soldotna and Homer are taxed according to the cities flat tax
schedule in addition to the Kenai Peninsula Borough flat tax. Vessels not
located within an incorporated city will be subject to only the Kenai
Peninsula Borough flat tax.
If no
return is filed as required or if the return is filed after February 15th, the taxpayer shall
pay a penalty on any property tax thereafter levied, plus interest on the tax
from the date the taxes would ordinarily come due.
Supplemental is an assessment of improvements that have been on the property for more than a year but not included in the last assessment. The supplemental assessment is the difference of what was assessed and what should have been assessed.
If you were assessed at $100,000
A mill is a thousandth of a dollar (1/1000 of 1$). A mill represents $1 of tax for each $1,000 of assessed value.
10 mills = $10 for every $1,000 of Assessed Value.
To convert Mills to a decimal, simply move the decimal 3 places to the left.
Example: Assessed Value $100,000 $100,000
Mill Rate 10.0 X .010
TAX WOULD BE $ 1,000
Click here for more exemption information
When you re-plat or re-subdivide a larger parcel of property into smaller parts, the lot boundaries change but the ownership of the property does not change until a deed is recorded. The owners of the old lot are still the owners of the 2 new lots created out of the old lot, no matter what the boundaries are now. After the plat is recorded, each party needs to convey all their interest to the other party on their respective new lots.
Example: Joe & Bill own Lot A, and re-plat it into A-1 & A-2. Joe wants Lot A-1, so Bill would convey his interest by a Quitclaim Deed to Joe. Bill gets Lot A-2, so Joe would convey his interest by a Quitclaim Deed to Bill)
When you replat or resubdivide a larger parcel of property into smaller parts or if you combine small lots into one larger lot, the lot boundaries change but the ownership of the property does not change until a deed is recorded. When you divide a lot into pieces and add the pieces to existing lots, all the small pieces are still held in ownership by both parties, no matter what the boundaries are now. After the plat is recorded, each party needs to convey all their interest to the other party on their respective new lots.
Example: Betty owned Lot A, Sally owned Lot C, and together they owned Lot B, the lot between them. The new Plat creates Lot A-1 from Lot A and West 1/2 of Lot B; and Lot C-1 from Lot C and the East 1/2 of Lot B. The ownership becomes:
Sally conveys all her interest in Lot A-1 to Betty, and Betty conveys all her interest in Lot C-1 to Sally.