The Alaska House of Representatives has passed House Bill 13, giving municipalities the option to provide targeted property tax exemptions aimed at expanding housing access across the state.
While the bill is being promoted by its sponsor and supporters as a tool to tackle Alaska’s housing challenges, it also raises serious concerns about shifting the tax burden onto other property owners. It’s a redistribution of wealth because every exemption must be made up elsewhere in the city. This is taking money from some people and giving it to others.
Sponsored by Anchorage Democrat Rep. Andrew Gray, HB 13 allows local governments to adopt ordinances granting property tax relief for specific types of real estate, including:
- Long-term rental units
- Certain mobile home parks
- Properties rented to low-income families
- Owner-occupied primary residences
- Homes purchased by first-time buyers
The stated intent is to promote stable rental markets, improve the quality of life in mobile home communities, and increase access to homeownership.
Tax exemptions would not be automatic. Municipalities must choose whether to implement them, and each community can define its own criteria and processes. For example, a city might require proof of income to qualify for low-income rental exemptions or set time limits for what qualifies as “long-term” rental housing.
In Anchorage, many property owners have applied for and received existing property tax exemptions, which have shifted the tax burden to other taxpayers. For example, if you are 65 or older and own/occupy your primary residence, you may qualify for an exemption on up to $150,000 of the assessed value. Same for a disabled veteran who has a service-connected disability, which gets a similar exemption.
Since property taxes are a key revenue source for local governments and fund schools, public safety, streets, emergency services, and more, reducing taxes for some property owners will likely require raising them for others in order for the city to not go bankrupt.
If exemptions are widely adopted, municipalities may need to:
- Raise property tax rates on non-exempt properties such as commercial buildings, homes, or market-rate rentals;
- Increase other local taxes, such as sales taxes, which could broadly impact residents and small businesses;
- Cut public services to make up for lost revenue.
For example, if a borough exempts $10 million in assessed property value, it may need to raise mill rates on the rest of the tax base to maintain funding levels.
Supporters argue HB 13 could make long-term rentals more attractive to landlords and potentially reduce rents for low-income tenants by lowering their landlords’ tax costs. It may also help mobile home parks and first-time buyers by reducing barriers to investment and ownership.
But the benefits are not guaranteed. If landlords of non-exempt rental properties face higher taxes due to budget adjustments, they may raise rents to cover the costs, pushing housing expenses higher for some renters.
Because implementation is optional and subject to local ordinances, the impact of HB 13 will vary by municipality. Cities like Anchorage or Fairbanks may embrace broader exemptions to address housing shortages, while smaller or rural communities may be hesitant to reduce revenue from already narrow tax bases.
Administering the new exemptions, including verifying income limits, determining first-time buyer status, and monitoring compliance, will place new burdens on municipal governments. And while the exemptions are meant to support housing goals, critics may argue that they unfairly favor specific groups, leaving other taxpayers to foot the bill.
HB 13, which passed 25 to 15, now goes to the Senate for consideration. There are nine days left in the session. If the bill doesn’t get through Senate committees and the Senate floor, it will be held over until next year.
Good Lord! More ‘shift and shaft.’ Didn’t Marky Mark start this trend back when he was mayor. It’ll never end. However, I MAY get more for my condo when I — eventually — blow this popsicle stand.
I just wish the municipality of Anchorage and legislators would look at repairing the roads. Instead of education let’s benefit all residents who drive the roads! In my over 40 years in Alaska the roads in Anchorage are the worst I have seen them. So, don’t give the municipality any decision making of importance. They will tax the working purse into poverty paying for homeless. Andrew Gray should stick to being a PA cause he dang sure doesn’t know anything about government. He was just elected cause he promised to be a puppet for the Democrat party!
Agreed he is a chump
Yet many roads in Anchorage are STATE maintained, or not, as the case may be. State maintenance was flush with funding and well done in the 1980s-90s, decreasing in maintenance priorities each year, as the Anchorage population is increasing. Annual potholes are effected by climate, increased vehicles and just-in-case maintenance.
Lovely…….They offer you a veiled tax cut with one hand and steal your PFD with the other. 🙄
Thieves and liars. Property taxes are fundamentally immoral, stealing properties from those who have worked hard to purchase them.
This is a terrible idea. Go figure a democrap
And a poofter.
The assembly and the mayor of Anchorage need to repair the roads their soooooooo bad and all the monies keep going into homeless crap. WTF is the matter with them
Tax breaks don’t force a tax shift. The Assemblies/Councils have the choice to lower taxes to keep anyone’s taxes from being increased. All r he large municipalities overspend so it can be done easily.
And the exodus will increase.
Yes, to the Matsu and Kenai Peninsula – with too many bringing along the same deluded politics that created the Anchorage mess they are ‘escaping’.
Anytime the government steps in to “fix” something, they end up f__king it up royally.
When this exemption issue comes before the Anchorage Assembly, the taxpayers should demand full disclosure and an external audit of all optional exemptions, including the process. HB13 is from and for Anchorage developers. These are for-profit developers primarily, but also so-called nonprofits.
There is under reporting of the optional exemptions part of the Anchorage tax base by about 50%. The annual Assessor’s report to the Assembly (and public) is false, in that most of the larger exemptions have not been revalued in many years. Presently the Municipal administration makes the decision on for profit exemptions on a confidential basis.
This is a no brainer move by Andrew to repay his fellow Dem supporters on the Anchorage Assembly.
Meg Zaletel and Rob Myers were pushing for the rezoning of housing properties in the muni to higher density housing units of which they are both developing as real estate moguls.
Now with the option to apply for a property tax exemption of their higher density rental properties in the name of housing affordability it definitely makes sense but ultimately at a cost to others of which they have no concern for.
Every Democrat must repay their supporting donors.
Wake up people. Property taxes are extorted from us. 100% abolishing them is the right thing to do. Implement consumption and use taxes. Such as increased vehicle registration, bring back the school tax. No more leans on MY PROPERTY ( ha what a joke) implemented by bonds that I ALWAYS vote no on. This at least is some movement in the right direction. Funny, no conservatives pushing for any kind of Property tax relief let alone abolishing it. Rob Yundt did some good work in the MSB. Now seems he’s a little weird on taxes as he sits in Juneau. When I bring this topic up, politicians run. Yeah, extort funds, steal the dividend, pretty much a norm for our culture in Juneau and local assemblies.
Rather pay annual state income taxes instead – and hope the Anchorage can get their fair share? Surely won’t be cheaper going forward.
Alaskan’s one party rule in Juneau won’t stop until we can’t afford to live here anymore. Then they will all move back south.
MOA keeps raising the value of my house so they can raise my taxes. The exemption I got 3 years ago evaporated in the last two years, so now I am paying the city $900 a month to live in my own house.
That would make your home worth about $685,000.
Only according to the muni tax assessor.
Property taxes will always be used as a weapon against the people. People are not sick in tired enough of the Marxism.
“The tax cuts would not be automatic”, says it all! So, a Left leaning municipal assembly could, theoretically grant tax exemptions to their politically friendly constituents while denying exemptions to their political enemies. I smell bullsh#t! We have enough money laundering going on in Congress, we don’t need to codify it at the local level here in Alaska.
There is other motivation here. Rental properties owned by large corporations will get a break while small private owners will see increases. This will reduce private ownership and also attack homeowners to force them out of homes they can no longer afford. Force them out, government takes over.
There’s something morally wrong about a tax structure where only a minority of residents (property owners) pay the tax burden, while everyone receives government benefits. This creates a huge incentive for non-property owners to vote for every expansion of government spending that comes down the pike. This is the reason why every bond proposition passes easily – because the majority of voters don’t have to pay for it.
I could do with fewer government “benefits” thank you.
Eee-liminate! Property Tax!
Income redistribution. Tax the rich. Pay your fair share.
Where have we heard this before?
This 2025 session cannot end soon enough for me.
Just so I have this straight, when I purchase property with already-taxed money (I was taxed on my income) the government forces me to pay a certain amount of my also previously-taxed money annually so this same government will allow me the privilege of occupying/using my property. If I do not give my previously taxed income as another subsequent tax to the government, they send armed agents of the state to evict me by use of force up-to and including death? And this system isn’t theft? Organized crime also sells protection. You pay and they leave you alone. You don’t pay, they come take it. What’s the difference between organized crime and a government racket that steals your income. Explain this to me please.
If it was not government it would be classified as extortion
This will not boost housing starts, only a healthy economy and real wage increases can do that, along with reduced lending rates, encouraged by the Fed.
It will also not decrease rental rates. The rental rates that were seriously increased by the policy fallout from the Biden regime.
The legislature is already looking forward to state income tax AND sales tax. There’s a monthly tax coming for cell and landline phone users. For “behavioral health”. Let’s not forget the 7.5% tariff on all goods coming in to the Port of Anchorage (LaFrance) beginning 1 July. Then Kopp & Fields are backing a retirement plan for 24,000 state employees. Meantime, our house appraisal went up by $93,000 in just two years. See how easy this is?
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