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How is the value of property assessed for tax purposes in your state? Which types of property are subject to tax?
Property must be assessed at its “full and true value”, defined by Alaska Statute 29.45.110 as the:
estimated price that the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer both conversant with the property and with the prevailing general price levels.
Alaska imposes a property tax on oil and gas exploration, production, and pipeline transportation property. The total tax is 20 mills, a large portion of which goes to the municipalities in which the property is located based on the local mill rates for other properties. Municipalities also levy property taxes on real and personal property, including business property.
What is the state property tax rate?
The oil and gas exploration, production, and pipeline transportation property tax is 20 mills or 2% of the property’s assessed value. Municipalities in which the property is located benefit from a portion of the tax, based on mill rates for other properties.
What is the range of local property tax rates levied in your state?
Local property tax rates generally vary each year depending on revenue demands in light of statutory limitations. Under Alaska Statute 29.45.090, municipalities (ie, cities and boroughs) cannot levy property taxes greater than 30 mills or 3% of the property’s assessed value. A municipality, or a combination of municipalities in the same area, cannot levy property taxes greater than $1,500 per resident.
A municipality or combination thereof in the same geographic area cannot levy property taxes greater than the product of a sliding scale percentage of the average per capita assessed value as determined under Alaska Statute 43.56.010(c), multiplied by the number of residents of the municipality.
Exemptions and deductions
What exemptions and deductions are available?
All real and personal property is subject to property taxes unless an exemption applies. Alaska Statute 29.45.030 sets out exemptions from local property tax, including:
- natural resources in place;
- household furniture and personal effects; and
- property used for non-profit educational, charitable, religious, hospital, or cemetery purposes.
Undeveloped and unleased property owned by an Alaska native corporation pursuant to the Native Claims Settlement Act is also exempt.
The state oil and gas exploration, production, and pipeline transportation property tax statute (Alaska Statute 43.56) includes certain exemptions, such as intangible drilling expenses and oil and gas reserves in place. Oil and gas exploration, production, and pipeline transportation property taxed under Alaska Stature 43.56 is exempt from local property taxes.
Alaska Statute 29.45.050 sets out certain optional exemptions from local property taxes.
What filing requirements and procedures apply?
Assessments are made as of January 1 of each year. Filing requirements and procedures vary by jurisdiction. State oil and gas exploration, production, and pipeline transportation tax returns must be filed by January 15 each year, absent extensions.
Real estate transfer tax
How is the transfer of real estate taxed in your state (including tax base, rates, exemptions, and filing formalities)?
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