March 15th: Residential Property Tax Exemption Application Deadline

In April 2005, Anchorage voters adopted Anchorage Municipal Code 12.15.015, a new ‘residential exemption’ program allowing the Municipality to exempt $20,000 of the municipal assessed property value of a homeowner’s primary residence from taxation.  If the property value is less than $200,000, then 10% of the property value is exempt.   The majority of homeowners reading this article have already completed their one-time application and are receiving the benefits of this program.  For those who haven’t… on.  This program is available only to those who file their residential exemption application by March 15th and who meet the qualification requirements below.  Your primary residence will continue to automatically receive this exemption each subsequent year without further filing unless the subject property no longer qualifies for the exemption.  If there is any change in your original qualification status, you must notify the Municipal Assessor’s Office.

There was a fair amount of publicity at the time of this program’s inception, but not much since then.  As a result, a number of Oceanview homeowners who purchased their primary residence subsequent to 2005 are unaware of this exemption.  If they qualify and complete the application, it will save them approximately $300 per year for every year they own and occupy their home as their primary residence.  Here’s how the savings is calculated: For 2015, all Oceanview homeowners’ property was taxed at a ‘mill rate’ of $14.70 per $1,000 of assessed property value.  A $20,000 reduction in value (20 X $14.70 = $294.00) meant a property tax reduction of $294.00.  Since the actual mill rate for 2016 will not be finalized until May, I don’t have an exact 2016 savings dollar amount, but I think I can accurately forecast that it will $300, or slightly more.

To qualify for this exemption per the Municipality of Anchorage:

  • Application must be completed, submitted and accepted by the Assessor to qualify for the exemption.
  • The applicant(s) must be the owner(s) of record prior to January 1st of the exemption year.
  • Upon initial application, the eligible applicant must have been a resident of the State of Alaska for the entire year prior to the exemption year;
  • The property has been owned and occupied as the primary residence and permanent place of abode of an eligible applicant for at least 185 days in the year prior to January 1 of the exemption year.
  • In each subsequent year, the property shall be owned and occupied as the primary residence and permanent place of abode of the eligible applicant for at least 185 days prior to January 1 of the exemption year.
  • It shall be the responsibility of every person who obtains an exemption under this section to notify the assessor of any change in ownership, property use, residency, permanent place of abode or other factor affecting qualification of the exemption.

2016 Residential Property Tax Exemption Application

The above form is exactly what the Residential Property Tax Exemption Application form looks like.  Click here to download a printable copy of the 2016 Residential Property Tax Exemption Application from the Municipal Website. 

Remember, the application must be received or postmarked by March 15th.  Per the Municipality of Anchorage, it is the property owner’s responsibility to ensure receipt of the application by the MOA by mail or submitting in person. If you desire information about other Municipal property tax exemptions click on the link below:

Are You Taking Advantage Of All Of The Municipal Property Tax Exemptions For Which You Are Entitled And Qualified?

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