By Chris Story
Originally published on Story Real Estate on 10/28/2025.
We often hear that taxpayers have a right to a fair property tax system. But fairness in taxation isn’t simply a right we claim. It is a duty that comes with living in a free and self-governing society.
The Constitution gives us more than rights. It gives us responsibilities. One of those is to help build and protect a fair system of taxation that serves the common good.
A fair tax must be based on real value, not speculation or hypothetical gains. When property is taxed on what it might be worth, rather than what it truly is, that crosses a line into injustice.
The Fifth Amendment reminds us why this matters. It declares that private property cannot be taken for public use without just compensation. When the government taxes unrealized or inflated value, it begins to look like a taking without compensation.
Standing up for property taxes grounded in real market value is not rebellion. It is fulfilling our duty as citizens to keep government honest and protect our constitutional promise of fairness.
Below is a copy of the amendment that Representative Sarah Vance submitted to the legal review department in Juneau in June.
As of this writing, she has yet to receive any response:
THE FAIR TAX ACT
Alaska Property Tax Reform Law
An Act amending Title 29 of the Alaska Statutes to establish a fair, equitable, and predictable property taxation system based on realized gains and base-year assessment.
Section 1 – Purpose and Intent
This Act shall be known as The Fair Tax Act.
The purpose of this Act is to reform the property tax system in Alaska to:
- Eliminate taxation on unrealized gains
- Establish a base-year value assessment method
- Cap annual property tax increases
- Protect long-term property owners, including seniors and the disabled
- Ensure fairness, predictability, and alignment with a property owner’s ability to pay
Section 2 – Amendment to Title 29: Property Tax Assessment Reform
Sec. 29.45._. Base-Year Value System
(a) Property tax assessments for all real property subject to municipal taxation in the State of Alaska, excluding oil and gas properties, shall be based on the fair market value assessed in the 2019 tax year (the “Base Year Value”).
(b) Upon purchase or transfer of property, the property shall be assessed based on the purchase price, which establishes a new base year for the new owner.
(c) Market-driven value increases shall not be used to reassess properties unless triggered by a qualifying event outlined in this section.
Sec. 29.45._. Reassessment Upon Ownership Transfer
(a) A reassessment shall occur upon the sale or transfer of real property and shall be based on the recorded purchase price.
(b) The following transfers shall not trigger a reassessment:
Transfers between spouses or registered domestic partners
Transfers between parents and children or grandparents and grandchildren, provided the transferee maintains the property as a primary residence
Transfers via inheritance or estate settlement, provided the inheritor maintains the property as a primary residence
Sec. 29.45._. Property Tax Rate Limitation
(a) Annual property tax mill-rate increases shall be limited to 0.01 mills per year.
(b) Any municipal proposal to increase rates beyond this threshold must be approved by a supermajority vote of the municipal governing body.
Sec. 29.45._. Senior Citizen and Disability Exemption
(a) An individual who is age 65 or older or permanently disabled, and who meets Alaska residency requirements, shall be exempt from property tax on their primary residence.
(b) A surviving spouse age 60 or older shall qualify for the same exemption if the deceased spouse qualified for the exemption at the time of death and the surviving spouse meets Alaska residency requirements.
Sec. 29.45._. Prohibition of Taxation on Unrealized Gains
(a) Property tax assessments shall not include increases in value due to speculative or unrealized market gains.
(b) Only realized gains through verified sale or transfer may be considered in reassessment.
Sec. 29.45._. Petition for Reduction Based on Market Value Decline
(a) A property owner may petition the local taxing authority for a reassessment if the current market value is demonstrably lower than the assessed base-year value.
(b) If approved, the assessed value shall be adjusted downward accordingly.
Sec. 29.45._. Severability
If any provision of this Act is found to be unconstitutional or invalid by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.
Section 3 – Applicability
This Act shall apply to all municipalities in the State of Alaska that levy property taxes.
Municipalities may not override or alter the protections established in this Act by local ordinance.
Section 4 – Effective Date
This Act takes effect immediately upon certification of voter approval in accordance with the Alaska Constitution and state election laws.
Chris Story owns Story Real Estate in Homer, Alaska and is the creator/producer of “Top of the World Radio Show”. He has published several books on real estate and self-enrichment.
It all sounds fine, particularly as it pertains to family transfers and exemption by seniors. Yet,the concern being how the amounts of collection currently will be covered by the exemptions and cut outs. The resulting tax collections would seemingly be lower assuming this bill passed, (if accepted for action)
So, where does the legislature look to replace that missing amounts be what it they may be.? One suspects the makeup will come from the usual pot, our share of the PFD in some format the legislature would extract.
The bill looks good up front, but the end result could be a tax or PFD “Shiv” to the backside.
Cheers,
Alaska has a spending problem, not an income problem.
Guaranteed the legislature would find a way to F it up.
I must say that we should abolish all property tax on Single family homes . If it is a duplex or four plex and the owner lives there the space occupied by that owner should be tax exempt as well. Taxing property is Communistic because it deprives you of ever owning it. It they can take it if you do not pay then you are a renter not an owner. This system is wrong. Taxes are needed to run government of course but this is a tax system that needs to be abolished.
I would prefer that over what is being proposed. I would love to see personal residences exempted as no one should chance to lose their home over property taxes. The proposal above chances to be a convoluted mess. Do a search of California property tax code and the problems it causes. I do not want to copy California.
Property tax on private home ownership in my opinion is not constitutional. I own my principle home and property, it is my only safe haven that I have should hard times come upon me. No government or other entity should be able to take that away from me because I cannot make a tax payment on it. Tax me on consumption items. I have control over those items. I do not mind paying my fair share of taxes, but property taxes on individual principle residences should not be allowed. Income tax is bad enough and that too should not be taxed. This bill is just putting a bandage on bad problem.
I never saw this until this publication.
There is no such thing as a “fair” property tax. However, I completely agree that any property tax must be based on real value – at the time of sale.
Oh ugh no. Unless I am reading this wrong it looks like what California has done for years and it creates huge disparity in what residents pay and it discourages home sales as well as new construction as new home buyers during a robust market are locked into a high home value and pay more taxes than a next door neighbor who maybe purchased their home ten years prior for a much lower price. What we have now is not taxing ‘unrealized gains’ it simply uses current market value, on a specific date, for Alaska January 1, as the base for taxation and the mil rate is adjusted using a funding formula and the annual budget established by the assembly. It is far easier to be equitable than the above proposal which won’t be equitable at all and hard on new home buyers. Market value going up or down do not mean that taxes go up or down as the mail rate is adjusted. Taxes go up if the assembly increases the budget or citizens vote for things such as bond packages which raises the mil rate to increase taxes. It is not the assessed value that increases or lowers the taxes.
Politicians will NEVER let you own anything No matter what that bill reads, It’s all creative writing
This. Creative writing indeed. Abolish property taxes. If you do not then no one really owns their home. They just rent it from the government.
Why is it that 40% of Municipality of Anchorage property values are tax exempt? No wonder our municipality has budget problems!
First of all there is nothing fair about property tax. There is no possible way to determine EVERY property owners property value. It’s difficult to collect as well. The only reasonable tax is a sales tax which is reasonably easy to collect. Our entire taxation should be a sales tax.
It would be interesting to know what the numbers would be if everything was based on sales tax. 15% Fed 8% county 4% city. ??? And I mean everyone pays. No tax exemption for corporations no tax exemption for government agencies. Flat out everyone buying a product pays sales tax. I’ll bet this country would be flush with cash in 5 years with no debt.
……..with fair representation. But how do you get that with a severely biased press, left-wing journalists, propoganda being taught at all levels of education …….and election fraud? Taxes without fair representation is the conundrum in 2025.
The property tax should be based on the milrate at the time of the purchase. And be set for the length of the ownership. That way is removes the annual assessment risk, keeps the JHA honest, and allows for lwless fluctuation in the escrow. If you start in 2025 with a $4,000 annual tax bill…. that is what it will be in 2045.
Mil rate is a percentage of the property value. You can fix the mil rate, but you can’t fix the property value. Your taxes will go up with the inflation of your home value.
Hes the Tony Robbins of Homer
Property tax is inherently unfair. You don’t truly own your home if the government can tax it away. And how is it fair that you should have to pay more taxes than others in the city simply because your house is worth more? Do you receive more government service with your higher taxes? Nope. The only truly fair tax is a head tax. (Look it up).
BS. Socialism is alive and well if you tax based on value. Do way with property tax. $500 per month is obscene to begin with. Sales tax only.
The proposed tax reform act is not a legitimate solution. Property tax in general should be abolished as it is highly discriminatory and utterly unjust. We need to replace it with something…. Sales tax of some sort does sound reasonable to me.
Oh, rich folk feeling what it’s like to be discriminated against? 😆
The Constitution gives us nothing. It is there to protect our inalienable rights given to us by God. The only “fair” tax is the one voted upon and agreed to by a well informed citizenry.
I sat before the before the board of equalization four times. I was 2 out of 4. One time my assessment went up while all but one other parcel in my neighborhood went down. When I sat before the board, I was told that because my parcel was so large, my house could be torn down and a duplex built there. Therefore, the property was worth more than my neighbors properties.
I didn’t say F you, but Eva can take her apples and stuff them! Total 🐂💩
I’m with John Hancock – there is no such thing as a fair property tax. It should be abolished outright, and not replaced with ANYTHING. All taxation is theft, plain and simple. Infrastructure maintenance, social services, etc. should all be paid for by user fees like vehicle registration or private donations like religious charities. Many of the absurd things now paid for by tax dollars, like “sex change” operations for prisoners would simply go away. Government would shrink down to 5 or 10 per cent of it’s current size, which is about where it should be. Will any of that ever happen? Not likely, but that is the reality of it. Unfortunately, career politicians cling to other people’s money like a leech clings to the bloody wound it has created. Either will die before giving up.
“Vehicle registration” (including license plates and identification) is an egregious violation of my right to privacy.
Do away with all property tax and only do a sales tax. This covers all people equally and remove any burden from a homeowner. But we need to cap the sales tax at no more than 2% on products. This includes fuel.
Louisiana Governor Jeff Landry declared on Wednesday, that LSU Athletic Director Scott Woodward will not select the university’s next football coach, saying “Hell, I’ll let Donald Trump select it before I let him do it”.
Trump should also decide whether we pay these taxes.
“Standing up for property taxes grounded in real market value is not rebellion. It is fulfilling our duty as citizens to keep government honest and protect our constitutional promise of fairness.”
Our duty.. If you like talking about “our duty”, then let’s talk about property taxes and voting when this country was young.
At one time, the only people who voted were land owners. Land owners have a vested interest in where their taxes go. Those who rented/leased did not have a say because they were not land owners and did not pay property taxes. When the plebes figured out they could vote themselves bread and circuses, the fall or Rome was not far away.
Property tax is theft. You no longer own your property, you are renting it. So.. Piss on “our duty”.
America has become what formed America in the first place.
A revolt against an unfair taxation…Who would have guessed?
Eeeeliminate property tax. Do it now. Stop the theft.