The annual assessment of property values in town resulted in an overall increase of about 12% for taxable property, though an owner’s tax bill will depend on the tax rate set by the borough assembly in late May.
State law requires municipalities to assess property —all land and buildings— at “full and true market value.” The borough’s contract assessor’s March 3 letter to the assembly said, “Our evaluations indicate that the overall market (value) … continues to grow despite the high cost of living and rising interest rates.”
The annual assessments are based on sales prices, property improvements and other factors. The values are as of Jan. 1 each year. Any improvements during the year would be factored into the next year’s assessment.
“This year, residents will observe adjustments in land and building assessment values,” said the report from Mike Renfro and Martins Onskulis, of the Appraisal Company of Alaska, based in Anchorage.
“These changes are derived from comprehensive reviews based on various factors including location and size,” the letter explained. “Assessed values have experienced an average increase ranging from 7% to 14%, with some instances witnessing higher adjustments. This variability is predominantly due to the type of property and its specific subdivision.”
Assessment notices will be mailed out by Thursday, March 20, at the latest, said Jackson Pool, the borough’s finance director.
The notices will include information on how property owners can appeal the assessment if they question the amount.
Actual property tax bills will go out this summer, after the assembly sets the tax rate which is multiplied against the assessed value to determine how much a property owner owes in taxes.
The tax rate, known as the mill levy, will depend on the borough’s overall spending plan, balancing revenues with expenses.
The total 2025 assessed value of all property in Wrangell — more than 2,500 properties — is reported at $442.4 million, subject to any appeals. Of that, $121.4 million is land and $321 million are buildings and other improvements built on the property.
Privately owned taxable property in town totaled $258.5 million, according to the assessor. That includes $80.8 million for land and $177.8 million for improvements.
About 40% of the $442.4 million total assessed valuation is designated as non-taxable, such as property owned by the borough, state or federal government, churches and tribal organizations.
That non-taxable 40% also includes more than $41 million in residential property owned by people age 65 and older. State law exempts from property taxes the first $150,000 in assessed value of a senior-owned home.
The $41 million of senior tax exemptions is close to last year’s number, covering more than 300 senior-owned homes.
State law has required the exemption since 1972. Though the state used to reimburse cities and boroughs for the lost revenue, the Legislature started phasing out the reimbursement in 1986 and stopped it completely in 1997, much to the frustration of municipalities.
According to the Department of Commerce 2023 Alaska Taxable report — the most recent data available — 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.
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