PERSONAL PROPERTY

Personal property includes commercial and personal use  watercraft and aircraft, and items not for resale used to operate a business, such as desks, tools, fishing gear, and restaurant equipment. For more information on items that would be taxable please contact the Assessing Department.

All owners of personal property are required to file a personal property statement with the Assessor's office by FEBRUARY 15th of each year. Any statement filed after this date will be subject to penalty and interest.   Personal Property forms are available at the Borough Assessor's Offices in Soldotna, Seward and Homer.

Property taxed through Alaska Department of Motor Vehicles (cars, trucks, motorhomes, snowmobiles and ATV's) should not be listed on a personal property statement. This DOES NOT include Boats. All boats located in the borough must be listed on a personal property statement.

FILING REQUIREMENTS

Personal property forms are mailed to all previous filers during December of each year and must be returned before February 15th or a late penalty will be assessed.  Assessment Notices for Personal Property are mailed April 1st.

Every person or business owning or having an interest in personal property located in the borough must file a statement each yearIf no return is filed or the return is filed late, a 10% penalty will be added to the tax levied.

Forms are mailed to current account holders annually.  Blank forms are also available at borough offices and on the web.

WHAT SHOULD BE REPORTED

Personal Property:Personal use watercraft and aircraft. Do not include automobiles or household furniture and effects not used for business.

Business Personal Property:Commercial use watercraft and aircraft, items used to operate a business, such as computers, tools, furniture, fixtures, and heavy equipment. Do not include retail inventory (items for sale).

For more information on items that should be included on a business property statement, please contact the Assessing Department This email address is being protected from spambots. You need JavaScript enabled to view it. // .

DETERMINING TAX JURISDICTION

The primary physical location where the personal property is located or normally kept determines which jurisdiction has authority to tax the property (situs). Personal property that has been, or is usually, normally or regularly kept or used within the Kenai Peninsula Borough for 90 days or more in the 12 months preceding January 1st are taxable for that year.

If you are unsure whether your personal property is subject to borough tax, contact the Assessing Department.

The following guidelines are used for determining situs.

  • • Where is the property located now?
  • • Where is the property normally or regularly kept?
  • • Where was the property located on January 1?
  • • Was the property located within the borough for more than 90 days in the preceding year?

 

HOW PERSONAL PROPERTY IS ASSESSED

Business Property:  Business Personal Property, other than watercraft and aircraft, are assessed using a depreciated cost method. Contact the Assessing Department for a copy of the current depreciation schedule.

Watercraft:  Watercraft for which any of the following have been issued are subject to a borough flat tax based on overall length, regardless of value/condition.

  • • USCG certificate of number (CDOC#)
  • • Alaska DMV boat registration (AK#)
  • • ADF&G number
  • • U.S. or foreign documentation or registration

*Watercraft that is located inside a city limits (Homer, Kenai, Seldovia, Seward, or Soldotna) will also be assessed on value or taxed on a flat fee schedule, depending on the City code.

Aircraft:  Aircraft that have been issued an N number by the Federal Aviation Administration (FAA) are subject to a borough flat tax based on weight, regardless of value/condition. Aircraft weight is determined using the MGWIL (Manufacturers Gross Weight with an Internal Load).

Commercial aircraft operated by a scheduled airline are assessed an apportioned value in accordance with the Borough’s landing schedule formula.

* Aircraft that is located inside a city limits (Homer, Kenai, Seldovia, Seward, or Soldotna) will also be assessed on value or taxed on a flat fee schedule, depending on the City code.

EXEMPT PROPERTY

$100,000 Exemption:  The first $100,000 in assessed value of business personal property is exempt from the borough tax, Soldotna City tax, and Homer City tax. Generally, businesses with an aggregate cost of personal property less than $100,000 are not required to file an annual statement, unless the property is located within the City Limit boundaries of Kenai, Seldovia, or Seward. This exemption does NOT apply to flat taxed aircraft and/or watercraft.

Vessel Repair/Service/Storage Exemption:  To obtain this exemption, the property owner must apply prior to February 15th. This exemption enables boat owners having a home port outside the borough boundaries to bring their vessels into the borough between September 1st and June 30th for storage/servicing and repairs, in a boatyard licensed to collect sales tax. This exemption exempts the boat owner from the yearly Borough flat tax. Vessels remaining in the Borough past July 1st will not qualify for exemption and will be taxed for the full year. Vessel Repair Exemption Application

REMOVING ASSETS FROM YOUR ACCOUNT

Removed From Borough - Provide a signed statement indicating when the property was removed from the Kenai Peninsula Borough.

Changes Of Ownership – Provide a copy of the bill of sale or a written statement including the new owner name & address, date of sale, and sale price.

Destroyed Vessels –Provide proof that the numbers from the issuing authority (Alaska DMV or National Vessel Documentation Center) were surrendered prior to January 1st of the tax year.

Destroyed Aircraft – Provide proof that the numbers from the issuing authority (FAA) were surrendered prior to January 1 of the tax year, and submit an “Aircraft Statement of Condition” form and supporting documentation.

FLAT TAX SCHEDULES

WATERCRAFT
AIRCRAFT