Anchorage, Alaska, Proposition 11, Increased Residential Property Tax Exemption (April 2018)
| Proposition 11: Anchorage Increased Residential Property Tax Exemption |
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| The basics |
| Election date: |
| April 3, 2018 |
| Status: |
 Approved
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| Topic: |
| Local property tax |
| Related articles |
| Local property tax on the ballot April 3, 2018 ballot measures in Alaska Anchorage Borough, Alaska ballot measures Local property tax on the ballot |
| See also |
| Anchorage, Alaska |
A property tax exemption measure was on the ballot for Anchorage voters in Alaska on April 3, 2018. It was approved.
| A yes vote was a vote in favor of increasing the residential real-property tax exemption to 20 percent of a property's value up to a maximum of $50,000. |
| A no vote was a vote against increasing the real-property tax exemption, maintaining the residential real-property tax exemption at 10 percent of a property's value up to a maximum of $20,000. |
Election results
| Anchorage Proposition 11 | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 55,413 | 72.37% | ||
| No | 21,152 | 27.63% | ||
- Election results from Anchorage Department of Elections
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ | This proposition would increase the residential real-property tax exemption to provide that 20% of a residential real property’s value may be exempt from taxation, up to a maximum of $50,000. Currently, 10% of a residential real property’s value may be exempt from taxation, up to a maximum of $20,000.
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Municipal assessor's analysis
The municipal assessor's analysis of the measure was as follows:[1]
| “ |
Residential real property is the largest segment of the Municipality of Anchorage’s property tax base, and property taxes make up the largest single source of revenue for the Municipality. Alaska Statute 29.45.050(a) allows for an optional exemption on residential real property. In 2012 a state ballot measure passed, which increased the allowable exemption limit from $20,000 to $50,000. Anchorage Municipal Code currently exempts from taxation, 10% up to a maximum of $20,000 of the value of a homeowner’s primary residence. Any change to this exemption amount requires an ordinance ratified by the voters. When the Municipality implemented the residential exemption in 2004, the average assessed value of a home was $198,800. Today the average home value is $353,750. If the residential exemption had kept pace with increases in market value, it would now be $35,600. The failure of the residential exemption to keep pace with increases in the market has caused a slow shift in the tax burden back toward residential homeowners. Community members often discuss whether homeowners bear a disproportionate share of the tax burden. While homeowners with residential exemptions pay slightly less tax on a percentage basis, the debate continues as to what portion of the overall tax burden homeowners should bear. When compared to homeowners in other states, Anchorage homeowners do, in fact, bear a higher proportion of the property tax burden than those in 34 other states according to a 2010 study by the Tax Foundation. https://taxfoundation.org/state32and-local-property-taxes-target-commercial-and-industrial-property/ The ordinance submitted with this memorandum proposes to allow voters in the Municipality of Anchorage the opportunity to raise the residential exemption from the current 10% up to $20,000, to 20% up to a $50,000 maximum. The effect of this change would be to shift some of the tax burden, from homeowners with residential exemptions, to other properties, particularly commercial properties. The average home with a residential exemption would see a reduction in property taxes of about 5.5% ($250 to $300), while the average commercial property would see a 4% increase in taxes.[2] |
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Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the Anchorage Assembly on December 19, 2017.[1]
See also
External links
Footnotes
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State of Alaska Juneau (capital) |
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