ITEM TITLE:
#26-06 -Amending Chapter 3.12 of the Valdez Municipal Code Titled “Property Taxes” to Create Chapter 3.10 Titled “Property Taxes Generally” and Chapter 3.12 Retitled as “Property Tax Exemptions”. First Reading. Public Hearing.
SUBMITTED BY: Sheri Pierce, City Clerk, MMC/ Jake Staser, City Attorney
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
Introduce Ordinance 26-06 in first reading for public hearing.
SUMMARY STATEMENT:
Passage of House Bill 13 by the Alaska Legislature, expands optional property tax exemption programs, and specifically allows for an open-ended exemption for a taxpayer’s “primary residence and permanent place of abode”.
During strategic planning in June 2026, the Council agreed to prioritize expanding the primary home exemptions to support homeownership and affordability. Council also expressed a desire to broaden the existing economic development exemption to encourage new business investment in the community and renovation of older buildings.
Council held work sessions on August 4th and August 19th to reach a policy consensus on the proposed exemptions and to review an initial draft of the ordinance.
The following is a summary of major changes included in ORD 26-06 as introduced:
• Expands the primary home exemption to exempt 77% of the remaining assessed value of a qualifying primary residence after all other exemptions are applied (existing primary home exemption, senior citizen exemption, etc.).
o This would leave in place only the state-required school portion of the mil levy on the remaining taxable value.
o To qualify, a homeowner must apply each year and show that they lived at the property and were not absent for no more than 180 total days during the calendar year (same as the state Permanent Fund Dividend standard).
• Removes geographic restrictions from the economic development exemption, making exemptions for new construction or major renovation available city wide
o The definition of “major renovation” is changed to be based on actual construction costs instead of a difference in assessed value to allow for ease in planning on the property owner’s part.
• Reorganizes property tax and exemption provisions into clearer, standalone chapters for readability.
• Streamlines administrative provisions and clarifies the process for and allowance of late file exemptions or appeals.
If adopted, the application will be finalized and made available by the end of October.