After last year’s comprehensive review of every piece of property in Wrangell pushed up the borough’s total taxable assessed valuation by more than 50%, this year’s assessment notices are tame.
Property tax assessments were sent out March 20, and initial numbers are down slightly from last year, though the numbers are not final until approved by the borough assembly.
This year the total assessed value of taxable property comes to $229 million, with non-taxable property at $158 million, which includes state, federal, borough, SEARHC and church property and residential property owned by senior citizens exempt from taxation.
Last year’s number for total taxable property was $235 million, with non-taxable properties at $150 million.
The change in numbers is likely due to some properties becoming non-taxable, additional senior-owned residences qualifying for an exemption and reduced values for property affected by last November’s deadly landslide at 11.2 Mile, said Martins Onskulis of the Anchorage-based Appraisal Company of Alaska. Assessments are based on property values as of Jan. 1 each year.
Actual property tax bills will go out this summer after the borough assembly adopts a budget, which involves setting the tax rate — a percentage applied to the assessed value.
The borough reassessed the value of all 2,300 properties in town last year in an effort to correct inequities — some properties hadn’t been assessed in 10 to 20 years, and in some cases similar homes in the same neighborhoods were assessed at significantly different values.
The reassessment covered homes, businesses and vacant lots. The higher values prompted almost 180 owners to appeal their property assessments last year, more than three times the number of the year before. Most were resolved informally between the property owner and borough assessor, though seven went to a full appeal before the borough Board of Equalization.
Appeals of this year’s assessments are due by April 19, if property owners believe the value is set too high for their lot or building. Forms are available at City Hall, or from the borough website: Click on the NEWS button and then click on the property tax appeal form.
In a continuing trend, Wrangell is adding more senior-owned residences to the tax-exempt rolls. As of last year, 319 residences qualified for the senior or disabled veteran exemption, taking more than $41 million off the taxable roll.
Since 1972, state law has required municipalities to exempt $150,000 in assessed value on a senior-owned home from property taxes. Seniors are defined by state law as anyone age 65 or older or a surviving widow or widower age 60 and older.
According to the Department of Commerce 2023 Alaska Taxable report, Wrangell had the largest percentage of senior-owned properties exempt from taxes in the state at 13.9% of all residential property in the borough.
The next highest was 11.4% in Nenana, about 50 road miles south of Fairbanks.
Last year’s rates for senior exemptions in Southeast were 9.6% in Petersburg, 8.6% in Ketchikan, 7.1% in Sitka and 5.5% in Juneau.
Wrangell’s population is older than most communities in Alaska. The town’s average age, as of state estimates for 2023, was 48.4 years old — one of the highest in Alaska. The statewide average was 36.5 years old.
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