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. See the Depreciation Schedule for more information.

All owners of personal property are required to file a personal property statement with the Assessor's office by FEBRUARY 15 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 taxes 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 15 or a late penalty will be assessed.  Assessment Notices for Personal Property are mailed April 1.

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 This email address is being protected from spambots. You need JavaScript enabled to view it. 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 1, 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 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 15. This exemption enables boat owners having a home port outside the borough boundaries to bring their vessels into the borough between September 1 and June 30 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 1 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 1 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
 
 

 

REAL PROPERTY: Real property consists of the land and everything placed on the land; these are called improvements and may be such things as: houses, mobile homes, outbuildings, barns, sheds, etc. These improvements are valued by the appraiser. This is a year-round function of the Assessor's office.

ASSESSMENT NOTICES: Real Property assessment notices are mailed March 1 each year.  This notice will advise you of your current year valuation and as well as any amount that is exempted. If you do not agree with the valuation, you have 30 days in which to file a written appeal to the Board of Equalization. Prior to filing a formal appeal, property owners are encouraged to first speak to a member of the appraisal staff. Many times an adjustment can be reached before an appeal is necessary. State Statutes and Kenai Peninsula Borough Code require property to be assessed at its full and true value as of January 1 of each assessment year.

TAX PAYMENTS: Taxes are payable when billed. The tax bills are mailed July1 and are due in full on or before October 15. At the option of the taxpayer, taxes may be paid in two equal installments. If the taxpayer elects this option, the first one-half of the taxes must be paid on or before September 15. The second one-half taxes then becomes due on or before November 15 and becomes delinquent thereafter. If the first one-half of the taxes is not paid by September 15th, payment of the taxes in full becomes due on or before October 15.

EXEMPTIONS & DEFERMENTS The Kenai Peninsula Borough has various property tax exemptions and deferments that are available to its residents. Exemptions are available on a single parcel of real property owned and occupied as the primary residence and permanent place of abode by a resident for at least 185 days per year. 

Residential Exemptions are AUTOMATICALLY REMOVED from a parcel when the Assessing Department receives notice of a change of address outside the borough.

$50,000 EXEMPTION for the owner (resident) of a permanent place of abode. This includes mobile homes. The $50,000 is subtracted from the assessed valuation before borough taxes are calculated. Applications are due before JANUARY 15 of each year. Once an exemption has been approved, the owners of record will not be required to file an updated application each year as long as the owner meets the occupancy requirement. It is the owner's responsibility to notify the Assessor if they are renting the property or no longer meet the occupancy requirement. Should there be absence due to medical reasons, the exemption may be granted by providing satisfactory evidence to the Assessor.

APPLICATION FOR $50,000 EXEMPTION


SENIOR CITIZEN EXEMPTION: Up to $300,000 of assessed value for the primary residence of a Senior Citizen may be exempted. To qualify, the applicant must be age 65 or older (or surviving spouse age 60 or older), own and occupy the property as their primary residence and permanent place of abode, and must also qualify for an Alaska Permanent Fund Dividend. Applications are due by MARCH 31 of the year being applied for. This exemption is a one time filing.

City tax will still be calculated on assessed values in excess of $150,000 for parcels located within the boundaries of Homer, Kenai, Seldovia, Seward, or Soldotna.

Exemptions are AUTOMATICALLY REMOVED from a parcel when the Assessing Department receives notice of a change of address outside the borough.

APPLICATION FOR SENIOR CITIZEN EXEMPTION


DISABLED VETERANS EXEMPTIONThe Disabled Veteran Exemption is available for residential real property owned and occupied by a resident who is a disabled veteran with a 50% or more service connected disability. Applications are due by MARCH 31 of the year being applied for. This exemption is a one-time filing. However, each applicant must submit a current VA letter, confirming their disability rating each year. Evidence of the disability rating must be submitted prior to application approval. If an updated letter is not received each year, the exemption will be removed.

City tax will still be calculated on assessed values in excess of $150,000 for parcels located within the boundaries of Homer, Kenai, Seldovia, or Seward.

Exemptions are AUTOMATICALLY REMOVED from a parcel when the Assessing Department receives notice of a change of address outside the borough.

APPLICATION FOR DISABLED VETERAN EXEMPTION


DISABLED RESIDENT EXEMPTION (Applied as a Tax Credit): A resident who has been determined, in writing, to be totally disabled by the administrator, board or other appropriate authority of the U. S. Social Security Program, Federal Civil Service System, Postal Employees Retirement System, Civil Service Retirement System, or any State Public Employees Retirement System can receive up to $500 tax exemption per year. This exemption must be applied for each year and is due by JANUARY 15. Renewal application forms are mailed to all previous filers in NOVEMBER of each year. A letter verifying disability status must accompany all applications for Disabled Resident Exemption.

APPLICATION FOR DISABLED RESIDENT EXEMPTION


VOLUNTEER FIREFIGHTER - EMS PROVIDE EXEMPTION: A resident who is an active volunteer providing firefighting or emergency medical services in the borough can receive an additional $10,000 exemption (maximum of 2 per household). This exemption must be applied for each year and is due by JANUARY 15TH. Renewal application forms are mailed to all previous filers in NOVEMBER of each year. The Fire Chief of the volunteer agency must verify the active status of each applicant.

VOLUNTEER FF-EMS APPLICATION


FARM DEFERMENT: This allows the Assessor to value the land at a farm value. In order to qualify, the applicant must be actively engaged in farming the land, and/or the raising and breeding of livestock. At least 10% of yearly gross income must come from the farm use land. Application must be made every year on or before MAY 15.

FARM DEFERMENT APPLICATION


CONSERVATION EASEMENT: Land on which a conservation easement has been granted in perpetuity to a qualifying non-profit agency or corporation. Land will be assessed at the full and true value remaining after the easement take. Applications must be filed with the assessor before May 15 each year in which the assessment is desired.

CONSERVATION EASEMENT APPLICATION

Mill Rates are set annually by the Borough Assembly, Municipalities and Service Areas Boards.    A mill is simply a thousandth of a dollar (1/1000 of $1 and represents one dollar of tax for each 1,000 dollars of taxable assessed value.  

Properties are assigned a Tax Authority Group (TAG).    The TAG identifies those taxing authorities and their corresponding mill rates.  

Example:           123 Example Street – located in TAG 58

Borough 4.30
Central Emergency Services 3.21
Central Hospital 0.01
Road Maintenance 1.40
TAG 58 Mill Rate 8.92

 

2023 Mill Rates

 

Historical Mill Rates by TAG.pdf