Property Tax Exemption Review

Property Tax Exemption Review

Citizen Tax Saving Suggestion

It's my understanding that Native Corporations do not have to pay property taxes on houses they lease to shareholders. The share holder pays a levy based on property value that is no where near what property tax payers pay.  I'm totally in favor of Native Rights but the same police and fire departments respond to their houses as the ones who respond to mine...we drive on the same icy streets...with the huge increase of gas prices these services have risen in cost. Has the levy agreement with the Native Corporations been reviewed? Does it need to be or can it be renegotiated?

Susan
Anchorage

Response: 

Thank you for your e-mail to the "Tax Savers" suggestion box.  I am the Municipal Assessor and will respond to the part of your note regarding Native Corporations and property tax exemptions.
As the Assessor, it is my responsibility to assess all properties and administer all programs for the Municipality Of Anchorage.  In this capacity, I am bound by Federal law, Alaska Statute, Municipal Code, and judicial case law concerning the taxable status of property.  There are several different laws related to the taxability of houses owned or occupied by Alaska Native people.  The Alaska Native Claims Settlement Act of 1971 is a federal law that transferred ownership of property to native corporations throughout the State of Alaska. As a result of this Act the transfer of ownership and, property owned by native corporations are exempt under Alaska Statute under certain circumstances.  Ownership of vacant property by a native corporation of property originally acquired through the Alaska Native Claims Settlement Act is specifically exempt.  Once property ownership is transferred from native corporate ownership, typically the property becomes taxable.

You refer to a practice of native corporations leasing property to native shareholders and then paying a property tax based on a levy amount that is not equal to other taxpayers.  I am not familiar with the practice you describe and would ask that you contact me with the specifics of your e-mail.  You can contact me directly at 907-343-6897.

Marty McGee
Municipal Assessor

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