The borough assembly received a brief overview from the borough manager of a potential tax intended to encourage owners of full- or part-time vacant housing to rent out their units rather than have them sit empty for long periods of time.

“The goal isn’t to penalize ownership or impact Wrangell’s permanent residents — it’s to strengthen our housing market by promoting productive occupancy and making better use of the homes that already exist,” Borough Manager Mason Villarma told the assembly at its Oct. 21 meeting.

Villarma said about 30% of Wrangell’s residential parcels show some degree of vacancy or semi-vacancy. When homes are occupied, he added, families pay for utilities, generate sales tax revenue, support businesses and enroll children in schools — activity that helps the economy and keeps neighborhoods stable and safe.

“At the assembly’s direction, the borough will examine a range of policy models to determine what approaches — if any — could best encourage meaningful, long-term occupancy,” Villarma said after the meeting.

No Alaska municipality has adopted a vacancy tax, though some local governments have explored other steps aimed at problem properties. Anchorage is considering a property tax break for owners who fix up vacant or abandoned buildings.

In 2023-2024, the Alaska Legislature considered — but did not pass — a bill that would have allowed municipalities to raise property taxes by up to 50% on blighted properties that meet certain criteria, such as being a public nuisance or a site of repeated illegal activity.

Assembly Member Jim DeBord signaled openness to the future discussion of Villarma’s idea. “I’m fine with discussing it,” DeBord said. “I feel like the residents here have been subsidizing the part-timers for too long.”

A proposal could set a threshold for vacancy, define exemptions for seasonal workers or active renovations, and outline how the tax would be verified and enforced.

Villarma indicated that the borough plans to analyze all relevant data before drafting an ordinance.

A public hearing would be required for any ordinance to amend municipal code.