Chapter 4.15 REAL AND PERSONAL PROPERTY TAX

The city shall assess, levy and collect real and personal property taxes pursuant to the provisions of AS 29.45.010 through AS 29.45.500 and this chapter. (Ord. 01-12 § 1 (part), 2001.)

4.15.020 Property subject to taxation, rate, council resolution.

A. All real and personal property not expressly exempted by the city or otherwise assessed by this title shall be subject to annual taxation at its full and true value as of January 1st of the assessment year.

B. The rate of levy of tax, the date of equalization of the tax, and the date when the taxes shall become delinquent shall be fixed before June 15th of each year by resolution of the council.

C. The rate of levy tax shall not exceed three percent of the assessed value of the property in the municipality; provided, however, that pursuant to AS 29.45.100 this limitation shall not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. (Ord. 01-12 § 1 (part), 2001.)

4.15.030 Real and personal property exemptions.

A. The property listed in AS 29.45.030 is exempt from general taxation, subject to the requirements set out therein and in this section.

B. Application Required. An application provided by the city for an exemption from taxation of property shall be filed with the city in accordance with AS 29.45.030.

C. Senior Citizen or Disabled Veteran Eligibility.

1. Residents of the city of Dillingham are eligible for a real property tax exemption on the first one hundred fifty thousand dollars of assessed value on the real property they own and occupy as a primary residence and permanent place of abode if the individual meets one of the following requirements:

a. Sixty-five years of age or older;

b. Disabled veteran; or

c. At least sixty years old who is the widow or widower of a person who qualified for an exemption under subsection (C)(1)(a) or (b) of this section.

d. To be eligible for an exemption under this subsection (C) for a year, the resident shall also meet all requirements for a permanent fund dividend under AS 43.23.005 for the same year or for the immediately preceding year.

2. Only one exemption may be granted for the same property and, if two or more persons are eligible for an exemption for the same property, the parties shall decide between or among themselves who is to receive the benefit of the exemption.

3. “Disabled veteran” means a disabled person:

a. Separated from the military service of the United States under a condition that is not dishonorable who is a resident of the state, whose disability was incurred or aggravated in the line of duty in the military service of the United States, and whose disability has been rated as fifty percent or more by the branch of service in which that person served or by the United States Department of Veterans Affairs; or

b. Who served in the Alaska Territorial Guard, who is a resident of the state, whose disability was incurred or aggravated while serving in the Alaska Territorial Guard, and whose disability has been rated as fifty percent or more.

4. Assessment Date. In order to qualify for an exemption described in this section, an applicant must fulfill the requirements for the exemption as of January 1st in the tax year for which the exemption is sought.

5. Filing Deadline. An application for exemption shall be filed no later than February 15th of the assessment year for which the exemption is requested.

6. Deadline Extension for Good Cause. The assessor may accept an exemption application after February 15th and up to May 25th of the assessment year for which the exemption is requested only upon a showing of good cause. A request to accept a late filed exemption application for a tax year shall be filed with the finance director. A denial of such a request may be appealed to the board of equalization pursuant to subsection (C)(12) of this section. Notwithstanding any other provision of law, a request to accept a late filed exemption application shall not be granted if it is not filed on or before May 25th of the tax year for which the exemption is sought.

a. “Good cause,” for purposes of waiver of the filing deadline, is a written explanation by a medical doctor which unequivocally establishes that the person seeking the exemption was physically or mentally incapacitated and therefore unable to submit a timely application or to appoint an authorized representative to file an exemption application on his or her behalf.

7. Senior Citizen Applications.

a. Qualifying senior citizen applicants are not required to reapply annually and shall remain in exempt status until the time when changes in ownership, occupancy, property use, or other factors affecting the exemption causes the property to either spatially qualify or no longer qualify for exempt status.

8. Disabled Veterans Applications.

a. The city shall accept disabled veteran applications for previous tax years only where the disabled veteran has made timely application for each year the exemption is sought and has received a qualifying retroactive disability evaluation from the Veterans Administration or applicable branch of service.

b. Qualifying disabled veterans who are permanently disabled are not required to reapply annually and shall remain in exempt status until the time when changes in ownership, occupancy, property use, status of disability or other factor affecting the exemption causes the property to either spatially qualify or no longer qualify for exempt status.

c. Disabled veterans who have not received a permanent disability rating are required to file annually.

9. City Notification. Property owners shall notify the city when the requirements for exemption are no longer met.

10. Assessor Determination and Request for Proof. If the assessor determines that a property is not eligible for exemption, all taxes, penalty and interest due on the property from the tax lien date following the date the property should have been subject to taxation are immediately due and owing. The assessor may require proof under this section at any time.

11. Certain Exempted Properties. Laws exempting certain property from execution under the Code of Civil Procedure (AS 09) do not exempt the property from taxes levied and collected by municipalities.

12. Appeal. A person may appeal the city’s denial of an application for the exemption of property from taxation to the board of equalization pursuant to Sections 4.15.125 through 4.15.140.

a. The appeal shall be filed with the city clerk, in writing, setting forth with specificity the explanation in support of the reason for the appeal, within thirty days of the city’s determination to deny the exemption application.

b. The board of equalization’s decision on the appeal may be filed as an administrative appeal to the superior court within thirty days, which appeal shall be on the record on which the board of equalization based its merits.

13. Review Applications. The city’s finance director will review one-third of the applications annually on a rotating basis.

D. Real property interests, other than fee simple record ownership, of an individual residing on the property, if the property has been developed, improved, or acquired with federal funds for the provision of low-income housing on or before September 1, 2017, and is owned or managed as low-income housing by either the Alaska Housing Finance Corporation under AS 18.55.100 through 18.55.960 or a regional housing authority formed under AS 18.55.996. This section does not prohibit the city from continuing to receive payments in lieu of taxes authorized under federal law.

E. Snowmobiles and three-, four-, or six-wheel all terrain vehicles (not to exceed manufactured dry weight of one thousand pounds) shall be exempted from personal property taxation.

F. Recreational boats and all outboard motors shall be exempted from personal property taxation. For purposes of this exemption “recreational boats” means watercraft used or capable of being used as a means of transportation on water and used exclusively for purposes other than commercial purposes and which are otherwise exempt from taxation under this section.

“Commercial purposes” means activities for which a person receives direct monetary compensation or activities for which a person receives no direct monetary compensation, but that are incidental to and done in furtherance of the person’s business.

G. The following boats are not exempt from personal property taxation under this section:

1. Boats used for commercial purposes, the amount of the assessed valuation over three hundred thousand dollars is not taxable. Unless renewed by the Dillingham city council, the exemptions granted under this subsection shall expire on December 31, 2021, after which the full and assessed value of such vehicles shall be taxable;

2. Boats required to display a commercial operator permit under state law or regulation;

3. Fishing vessels required to display a number plate by AS 16.05.520(A) or any successor state law or regulation;

4. Boats for which a commercial vessel license is required under state law;

5. Boats owned or operated at any time during the preceding calendar year for the purpose of the taking, fishing for, or possession of fish, shellfish, or other fishery resources with the intent of disposing of them for profit, or by sale, barter, trade, or in commercial channels regardless of whether the boat was actually used for this purpose;

6. Boats for which a vessel entry permit is required; and

7. Boats operated at any time during the preceding calendar year for hire.

H. Rental household and office furniture are exempt.

I. The amount of the assessed valuation of any aircraft subject to taxation under Section 4.15.052 that exceeds three hundred thousand dollars is not taxable. Unless renewed by the Dillingham city council, the exemption granted under this subsection shall expire on December 31, 2021, after which the full and assessed value of such aircraft shall be taxable. (Ord. 01-12 § 1 (part), 2001; Ord. 08-02 § 3, 2008; Ord. 13-13 § 2, 2013; Ord. 15-18 § 2, 2015; Ord. 16-06 § 2, 2016; Ord. 17-01 § 2, 2017; Ord. 17-07 § 2, 2017; Ord. 18-06 § 2, 2018.)

4.15.040 Boats and vessels.

For the purposes of assessing, levying, and collecting taxes, boats and vessels used for commercial purposes shall be considered personal property and valuation shall be determined on an assessed valuation prepared by the city assessor. (Ord. 01-12 § 1 (part), 2001; Ord. 08-02 § 4, 2008.)

4.15.045 Motor vehicles.

A. Motor vehicles, as specified in AS 28.10.421, are subject to a city registration tax as provided by AS 28.10.431 at the rates set forth in this section, subject to any exemptions required by the state. The tax shall be levied, collected, enforced and otherwise administered by the state as provided by AS 28.10.431(c). The registration tax is in lieu of all municipal use taxes and ad valorem taxes on motor vehicles subject to the tax.

B. Pursuant to AS 28.10.431(j) the city modifies the scheduled amount of tax imposed under AS 28.10.431(b) and (l) of the statute according to the following schedules:

1. There is a biennial tax levied in the municipality upon motor vehicles subject to the registration fee under AS 28.10.411 and 28.10.421. The biennial tax shall be according to the following schedule:

Tax According to the Age of Vehicle Since Model Year:
Motor Vehicle	1st	2nd	3rd	4th	5th	6th	7th	8th or over
Noncommercial Passenger, Motorhome, Pick-up and Cargo Vans Commercial (1—5,000 lbs.) and Taxicabs	145	119	92	66	47	34	23	19
Noncommercial Trailers and Motorcycles	20	18	16	12	8	6	5	5
Commercial (5,001—12,000 lbs.)	238	185	145	119	92	66	40	26
Commercial (12,001—18,000 lbs.)	536	470	418	365	312	272	246	233
Commercial (18,001 lbs. and Over)	655	563	484	418	365	312	259	233

(Ord. 15-20 § 2, 2015; Ord. 01-12 § 1 (part), 2001.)

4.15.050 Mobile homes.

For the purpose of assessing, levying, and collecting taxes, all mobile homes and similar property are classified as real property. (Ord. 01-12 § 1 (part), 2001; Ord. 08-04 § 2, 2008.)

4.15.051 Container vans.

For the purpose of assessing, levying, and collecting taxes, all container vans and similar property are classified as real property. (Ord. 08-01 § 2, 2008.)

4.15.052 Aircraft.

A. For the purpose of assessing, levying, and collecting taxes, any aircraft which is used for personal or commercial purposes within city limits or which is registered and/or stored within city limits at any time in a tax year shall be considered personal property and the owner shall provide the taxable value of the aircraft to the city. Subject to the exemption provided in Section 4.15.030(I), all aircraft which are not subject to personal property taxation as non-scheduled air carriers under Section 4.15.055 are subject to personal property taxation under this section.

B. All aircraft owners must file a personal/business property tax return indicating the value of the aircraft as of January 1st of each tax year. Aircraft are assumed to be present within the city year round unless demonstrated otherwise. If the owner of an aircraft can demonstrate the aircraft was absent one or more days during the tax year, the owner shall file a return indicating (1) the value of the aircraft, and (2) the number of days the aircraft was not in Dillingham. This assessed value of such aircraft shall be determined by the following formula:

Assessed value =

(fair market value/365 days) x number of days [including partial days] in Dillingham

C. An aircraft that is in transit and does not receive any benefit or services in Dillingham during the year is not subject to taxation under this section. (Ord. 15-19 § 2, 2015; Ord. 16-06 § 2, 2016.)

4.15.055 Scheduled air carriers.

A. Any aircraft which is based outside of the city and is operated by a scheduled air carrier shall be assessed in proportion to the number of landings by that aircraft in the city. This value shall be determined by the following formula:

Assessed value = (market value/17,520) × total landings

For purposes of determining the assessed value of the aircraft, the assessor shall use the fair market value of the aircraft as of January 1st of the current tax year, and shall use the total number of landings in the city by the aircraft in the previous tax year.

B. It shall be the responsibility of the air carrier to provide the city with a return documenting the total landings for each aircraft. In the event the air carrier fails to provide such documentation, the assessor shall assess the aircraft based on its full value as of January 1st of the tax year.

C. For the purpose of this section:

1. “Scheduled air carrier” shall mean any certified air carrier which maintains a regular schedule of flights to and from the city.

2. An aircraft is “based outside of the city” if the airport at which the aircraft is usually based, as indicated by that aircraft’s registration, lies outside the city limits, unless the city has reason to believe that the aircraft is in fact based within the city limits. (Ord. 01-12 § 1 (part), 2001.)

4.15.060 Business inventories.

Business inventories shall be assessed based on the year end method. Defined as inventory in place at the end of the prior calendar year. (Ord. 01-12 § 1 (part), 2001; Ord. 10-05 § 2, 2010.)

4.15.070 Assessment roll and notice—City to prepare and mail.

A. Annually, the city shall prepare the assessment roll pursuant to AS 29.45.160. The roll shall be prepared in duplicate and shall include particulars on delinquent taxes owing by any persons.

B. The city shall mail each person named in the roll a notice of assessment by March 15th or the next business day should the fifteenth fall on a weekend or holiday, pursuant to the provisions of AS 29.45.170.

C. Corrections to the assessment notice may be made pursuant to AS 29.45.180.

D. The notice shall include the deadline for filing an appeal, which shall be thirty days from the date the notice is mailed. (Ord. 01-12 § 1 (part), 2001: Ord. 09-03 § 2, 2009; Ord. 13-02 § 2, 2013; Ord. 14-05 § 2, 2014.)

4.15.080 Personal property returns.

A. Every person with personal property whose total combined value is greater than ten thousand dollars shall submit to the city a personal property return, postmarked on or before the first business day in February, of any property owned by him/her or in which he/she has an interest, and of the property held or controlled by him/her in a representative capacity, in the manner prescribed in this chapter, which return shall be based on property values existing as of January 1st of the year in which the return is made, or, in the case of business inventories, values shall be computed on the year end method. Commercial boats and vessels are not included in figuring whether the property owner has more than ten thousand dollars in personal property, but must be reported annually on the personal property assessment return. The person making the return in every case shall state the address to which all notices required to be given to him/her under this chapter may be mailed or delivered. The return shall show the nature, quantity, description, amount and value of all personal property, and the place where the property is situated. The return shall be in such form and include such additional information as the assessor may prescribe, and shall be signed and verified under oath by the person liable or his/her or its authorized agent or representative.

B. The assessor may, by notice in writing to any person by whom a return has been made, require from him/her further return containing additional details and more explicit particulars, and upon receipt of the notice, that person shall comply fully with its requirements within thirty days.

C. Total combined value for the purpose of this section shall include all personal property except:

1. Commercial boats and vessels assessed on a valuation under Section 4.15.040; and

2. Personal property exempted from tax under Section 4.15.030. (Ord. 01-12 § 1 (part), 2001; Ord. 08-02 §§ 2, 5, 2008; Ord. 11-08 § 1, 2011.)

4.15.090 Assessor’s right to investigate.

The assessor may personally examine and investigate taxable property pursuant to AS 29.45.130. (Ord. 01-12 § 1 (part), 2001.)

4.15.091 Audit personal/business property.

As part of the contracted services, the assessor may be asked to provide on-site audits of personal/business property. (Ord. 15-19 § 3, 2015.)

4.15.100 Violations, penalties, and interest.

A. Any person who fails to file a personal/business property assessment tax return in person or postmarked on or before the first business day in February shall be assessed a late penalty of fifty dollars.

B. If the city is required to initiate a force filing on a person’s personal/business property assessment return not received before the first business day in March, the following penalties will be imposed in addition to the penalty required by the previous subsection:

1. First year, the force filing fee is one hundred dollars;

2. Second consecutive year, the force filing fee is two hundred fifty dollars; and

3. Third and every consecutive year thereafter, the force filing fee is four hundred dollars and an on-site audit shall be scheduled.

C. A penalty of ten percent of the property tax due by the dates established in Section 4.15.160(C) shall be added to all delinquent taxes, and interest of six percent per year shall accrue on unpaid taxes, not including penalty from the date due until paid in full.

D. Filing a false statement in an attempt to evade taxation is unlawful and shall result in a fine in an amount not to exceed three hundred dollars in addition to payment of all taxes and fees owed. (Ord. 15-19 § 4, 2015.)

4.15.110 Posting required.

When valuation notices have been mailed, the city shall cause notice that the assessment rolls have been completed to be posted at two public places for a period of two weeks. Such notice shall also state the time and location of the board of equalization’s organizational meeting and that an appeal may be taken to the board of equalization by filing notice in writing with the board specifying the grounds of the appeal within thirty days of the date valuation notices were mailed. (Ord. 01-12 § 1 (part), 2001; Ord. 13-02 § 3, 2013; Ord. 14-05 § 3, 2014.)

4.15.120 Membership of the board of equalization.

A. Membership—Duties.

1. Membership. The board of equalization shall be composed of three city council members and the mayor, who will preside. Members shall not be in default with the city for taxes.

2. Duties. The board may determine equalization on properties brought before the board by appellants or by one or more members of the board. The board may alter an assessment of a lot only pursuant to an appeal filed as to the particular lot.

B. Duties of Municipal Assessor. The municipal assessor shall furnish the board of equalization with copies of the appellant’s appeal and a short narrative of the assessor’s position. The assessor shall certify that material furnished to the board is true and correct, and such material shall be considered as part of the official record the board may consider. The assessor or his representative may supplement the record by additional testimony, documentation and exhibits in accordance with Section 4.15.130(J). (Ord. 13-02 § 4 (part), 2013.)

4.15.125 Appeals to board of equalization.

A. A person whose name appears on the assessment roll or his agent or assigns may appeal to the board of equalization for relief from an alleged error in valuation.

B. No appeal may be taken unless the applicant files with the city clerk written notice of appeal specifying grounds for such appeal within thirty days from the date the assessment notice was mailed.

C. The city clerk shall acknowledge the written appeal by sending the appellant a notice indicating the time and location of the board’s organizational meeting, and shall refer all appeals to the assessor, including transmitting to the assessor any documents submitted by the appellant.

D. Prior to the hearing, the appellant taxpayer may present relevant information directly to the assessor, who may revise the original assessment if the information indicates that the original assessment was unequal, excessive, improper or under valued. If the assessor and the appellant taxpayer tentatively agree upon a revised assessment value prior to the hearing, the assessor will prepare a memorandum to the board of equalization stating the reasons for the revised assessment, the amount thereof, and requesting approval of the new value. The board shall consider the memo at the organizational meeting described in subsection E of this section. If the board of equalization does not approve the value, the assessor shall schedule the appeal for a hearing and the city clerk shall properly notify the appellant.

E. As soon as practicable after the deadline for filing appeals expires, the board shall convene an organizational meeting to determine the number of outstanding appeals and schedule hearings. No more appeals shall be accepted except as provided in subsection G of this section.

F. Hearings for all outstanding appeals shall be held prior to May 15th of the tax year for which the assessment is appealed, unless the board determines at its organizational meeting that additional time is necessary to conduct all the hearings. All hearings and assessments must be complete before the council considers the resolution required by Section 4.15.020(B).

G. A property owner who seeks to appeal the assessor’s valuation after the thirty-day filing period has closed may request a finding that the property owner was unable to comply with the requirement to timely file an appeal by filing a written request with the city clerk within fourteen days after the inability to comply ceased or within fourteen days after the taxpayer should have become aware of the reason for filing the appeal, whichever is earlier. The written request must include information sufficient to determine whether the request has been submitted within the time stated in this section.

1. Each letter shall be considered in a scheduled hearing by not less than three members of the board of equalization, although the entire board may convene if available and convenient. The city clerk shall provide notice to the public and the property owner no less than five days prior to the hearing. The panel shall only consider reasons the appellant was unable to comply within the thirty-day period and shall not consider evidence regarding property valuation. The panel’s determination shall be based on the letter and supporting documents. A taxpayer may not make an oral presentation at this hearing.

2. The panel shall interpret the term “unable to comply” to mean that a property owner has demonstrated compelling reasons or circumstances that were beyond the property owner’s control and which would prevent a reasonable person under the circumstances from filing a timely appeal.

3. If the request is denied, the city clerk shall notify the property owner of the panel’s decision. If the request is granted, the property owner shall have thirty days from the date the city clerk so notifies the property owner to file an appeal and submit all evidence required by Sections 4.15.130(G) and (J). A hearing shall be scheduled to occur within thirty days from the deadline identified in the previous sentence, and a decision rendered at the conclusion of the hearing or as soon as practicable thereafter.

4. A request for a finding of inability to comply is limited to an appeal of the notice of assessment for the current assessment year. (Ord. 13-02 § 4 (part), 2013; Ord. 14-05 § 4, 2014.)

4.15.130 Board of equalization hearing.

The following procedures shall govern the hearing:

A. Quorum. A quorum shall consist of three members.

B. Voting. The board shall act by simple majority vote, and may decide to reject, approve, or partially approve or reject an adjustment requested by either party by a majority vote of the board members present at the hearing.

C. Conduct of Hearings. Except as otherwise provided in this chapter, hearings shall be conducted by the board in accordance with Robert’s Rules of Order, Newly Revised.

D. Record. The city clerk shall keep verbatim stenographic records or electronic recordings of the board’s proceedings, showing the vote of each member on every question and all of the evidence presented. The city clerk shall prepare written minutes for all board proceedings and the chairperson of the board and the city clerk shall sign such minutes.

E. Counsel. All parties may be represented by counsel during hearings before the board. The municipal attorney may offer legal counsel to the board in the course of its proceedings.

F. Case Number. Every appeal shall be assigned a case number which shall be read into the record along with the name of the appellant before the hearing on that appeal commences.

G. Burden of Proof. The burden of proof rests with the appellant. The only grounds for adjustment of an assessment are unequal, excessive, improper or under valuation based on the facts that are stated in a valid written appeal or provided at the appeal hearings in accordance with subsection J of this section. If the valuation is found to be too low, the board of equalization may raise the assessment. The municipality shall make available to the appellant all reasonably pertinent documents requested for presentation of the appeal.

H. Rules of Evidence. The board shall not be restricted by the formal rules of evidence; however, the chairperson may exclude evidence irrelevant to the issues appealed. Hearsay evidence may be considered provided that there are adequate guarantees of its trustworthiness and that it is more probative on the point for which it is offered than any other evidence which the proponent can procure by reasonable efforts.

I. Order of Presentation. The appellant may present his appeal in person, in writing, or by authorized representative and shall present his argument first. If any party to whom notice of the hearing was mailed fails to appear, the board may proceed with the hearing in his/her absence. Following the appellant, the assessor shall present the municipality’s argument. The appellant may, at the discretion of the chairperson, make rebuttal presentations directed solely to the issues raised by the assessor. The municipal attorney may question the appellant or the assessor on matters relating to the appeal. The members of the board may ask questions of either the appellant or the assessor at any time during the hearing.

J. Witnesses and Exhibits. The appellant and the assessor may offer oral testimony of witnesses and documentary evidence during the hearing. Any documents presented to the board by either party must be provided to the opposing party and to the city clerk at least seven days before the hearing, but failure to produce such documents prior to the hearing shall not prevent the board from accepting the documents as evidence unless doing so would substantially prejudice the other party. All testimony before the board shall be under oath.

K. Decisions. At the conclusion of the hearing, the boards shall determine the correct valuation and shall clearly state the reason for its decision on the record.

L. Certification. The city clerk shall transmit the results of the hearings to the parties and the city finance department within three days of the hearings in accordance with Section 4.15.140. Except as to supplementary assessments, the city council shall certify the final assessment roll by June 15th. (Ord. 13-02 § 4 (part), 2013.)

4.15.140 Appeal record.

The clerk shall be ex officio clerk of the board of equalization and shall record in the minutes of the meeting all proceedings before the board and the names of all persons protesting assessments. All changes, revisions, corrections, and orders relating to claims or adjustments and final decisions shall be recorded in a record to be kept by the clerk and to be known as the appeal record. Within three days following the final hearings of the board, the clerk shall transmit to the assessor all corrections, revisions, or changes authorized and approved by the board and shall certify that the changes so reported are as approved by the board of equalization. Appeals to the board of equalization determination may be made to the superior court as provided in AS 29.45.210. (Ord. 01-12 § 1 (part), 2001.)

4.15.150 Assessment roll—Changes/supplementary roll.

A. Prior to the time of the board of equalization hearing, the assessor may correct any error or supply any omission made or arising in the preparation of the assessment roll. It shall be the duty of every person receiving a notice of assessment to advise the assessor of any error or omission observed in the assessment of his/her property in order that a correction may be entered.

B. Following the board of equalization hearing, the assessor shall enter the changes, so certified, upon his records, and no assessed valuations shall thereafter be changed. The assessor shall complete the annual assessment roll, at a time to be determined by the board, which shall be based on values as of January 1st immediately preceding or, in the case of business inventories, pursuant to Section 4.15.060 and shall certify the same.

C. Such supplementary assessment rolls shall be prepared and certified as may be necessary or expedient; provided, however, that the date taxes are due and delinquent shall be the same as for property listed on the original roll. (Ord. 01-12 § 1 (part), 2001.)

4.15.160 Assessment—Delivery to council, resolution, tax levy.

A. When the final assessment records have been completed by the assessor as herein provided, the assessor shall deliver to the council a statement of the total assessed valuation of all real and personal property within the city.

B. Every assessment roll as completed and certified by the assessor, and as corrected and amended by him/her from time to time in conformity with this chapter and the decisions of the council shall, except insofar as the same may be further amended as a result of an appeal to the court as provided by this chapter, be valid and binding on all persons, notwithstanding any defect, error, omission or invalidity existing in the assessment roll or any part thereof; and notwithstanding any proceedings pertaining thereto.

C. Upon receipt of the assessment roll, as amended or supplemented, the city council shall, by resolution, fix the rate of tax levy, designate the number of mills upon each dollar of assessed real and personal property, levy the tax, and provide the dates when payments are due and delinquent. Unless provided otherwise, the due dates are as follows: The first payment of property taxes is due to be paid in person or postmarked on or before the first business day in November. Should the first one-half of the total amount due not be paid on or before the payment due date, the entire amount of taxes owed shall immediately become due and payable. The second payment and final payment of property taxes is due to be paid in person or postmarked on or before the first business day in December.

D. A payment will not be considered delinquent if postmarked by the United States Post Office prior to midnight on the payment dates. The postmarked date on payments received by mail shall serve to establish the date received. (Ord. 01-12 § 1 (part), 2001; Ord. 10-01 §§ 2, 3, 2010.)

4.15.170 Mail tax statements.

Following adoption of the council resolution provided in Section 4.15.160(C) and by July 1st, the city shall mail tax statements, setting out the levy and the dates when taxes are due and delinquent, and the penalties and interest. (Ord. 01-12 § 1 (part), 2001; Ord. 13-02 § 5, 2013.)

4.15.180 Penalties and interest.

Repealed by Ord. 15-19. (Ord. 01-12 § 1 (part), 2001; Ord. 10-02 § 2, 2010; Ord. 10-10 § 2, 2010.)

4.15.185 Disaster declaration.

Upon declaration of the city council of an economic disaster in any year, a taxpayer shall not be required to pay the penalty for late payment of real or personal property taxes, shall not be subject to force filing fees for personal property taxes under Section 4.15.100, and shall be assessed a reduced interest rate of three percent interest under Section 4.15.180 for taxes due for real or personal property during the calendar year that the economic disaster declaration is made; provided, that prior to October 30th of that year, or one month after the economic disaster declaration is made, whichever is later, the taxpayer enters into a repayment plan agreement as set forth in Section 4.15.365 and does not default on the repayment loan. (Ord. 01-12 § 1 (part), 2001; Ord. 13-11 § 2, 2013.)

4.15.190 Enforcement of tax liens.

The city shall enforce tax liens pursuant to the provisions of Sections 4.15.200 through 4.15.230 and AS 29.45.290 through AS 29.45.500. (Ord. 01-12 § 1 (part), 2001.)

4.15.200 Foreclosure list.

A. The clerk shall, after taxes have become delinquent and due, prior to January 31st of each year, make up a roll of all property then subject to foreclosure and present the list to the city council. The city council shall direct that the city:

1. Annually present a petition for judgment and a certified copy of the foreclosure list for the previous year’s delinquent taxes in the superior court for judgment;

2. Publish the foreclosure list for four consecutive weeks in a newspaper of general circulation distributed in the city, or if there is no newspaper of general circulation distributed in the city, post the list at three public places for at least thirty days;

3. Within ten days after the first publication or posting, mail to the last known owner of each property as the owner’s name and address appear on the list a notice advising of the foreclosure proceeding, in which a petition for judgment of foreclosure has been filed, and describing the property and the amount due as stated on the list.

B. The list shall be arranged in alphabetical order by the last name and must include the last known owner; the property description as stated on the assessment roll; year and amount of delinquency; penalty and interest due as of the date the list is prepared; the applicable foreclosure cost fee set forth in Section 4.15.235(B); a statement that the list is available for public inspection at the clerk’s office; and a statement that the list has been presented to the superior court with a petition for judgment and decree.

C. Completion of the requirements of subsection A of this section constitutes, and has the same force and effect, as the filing of an individual and separate complaint and service of summons to foreclose a lien against each property described on the foreclosure list. (Ord. 01-12 § 1 (part), 2001; Ord. 16-10 § 1, 2016; Ord. 18-01 § 2, 2018.)

4.15.210 Clearing delinquencies.

During the publication or posting of the foreclosure list, and up to the time of transfer to the municipality at the time judgment is entered, a person may pay the taxes, together with the penalty, interest, and the applicable foreclosure costs set forth in Section 4.15.235(B). The collector shall note payment on the foreclosure list. (Ord. 01-12 § 1 (part), 2001; Ord. 16-10 § 2, 2016.)

4.15.220 List to lien holder.

A holder of a mortgage or other lien on real property may request the clerk to send by certified mail notice of a foreclosure list that includes the real property. (Ord. 01-12 § 1 (part), 2001.)

4.15.230 Personal property—Collection, delinquency, remedies.

A. A Demand for Payment of Personal Property Taxes. Prior to December 31st of each year the city clerk will work with the collections person and together shall mail, postage fully paid, to all persons whose personal property taxes are delinquent, demand payment of the taxes plus penalty and interest. This shall be the date of mailing of the notice of tax due referred to in subsections (C)(2)(a) and (b) of this section.

B. Methods of Collection of Personal Property Taxes. Personal property taxes together with the penalty and interest, may be collected, after the same become due, either by distraint or in a personal action brought in the name of the city against such owner in the courts of the state, or both such methods of collection may be used, in the discretion of the council. Neither of such methods shall be deemed exclusive remedies.

C. Collection by Distraint and Sale.

1. Persons Subject to Enforcement. If at any time a taxpayer is more than six months delinquent in any of the sales or personal property taxes levied by the city due the city, he/she shall be subject to the enforcement procedures provided in this chapter, which are in addition to any other enforcement procedures already provided for and are not exclusive.

2. Distraint. The lien of personal property taxes and other nonreal taxes may be enforced by distraint and sale of the personal property of the person assessed. The procedure shall be as follows:

a. Demand shall be made of the person assessed by sending him/her a notice of the amount of tax due, the penalty and interest and the total and notice to the effect that if the taxes and all penalty and interest are not paid by a date certain which date shall not be less than thirty days from the date of mailing, that his/her personal property shall be subject to distraint and sale. The notice shall be sent by certified mail, return receipt requested or may be served in person with return of the person making service. The notice shall be signed by the city clerk.

b. If no payment is made within the time specified or in accordance with any repayment plan authorized by this chapter, the city clerk shall issue a warrant directed to an enforcement officer of the city to be designated by the city manager, direct him to seize, levy upon, distrain, and sell by public auction such personal property of the person assessed as the tax may have been levied upon, and that if the same is not sufficient to satisfy the tax, penalty, interest, costs, and expenses of sale, such warrant may authorize seizure, levy, distraint and sale of such other personal property of the person against whom the tax was assessed as may be sufficient to satisfy such tax, penalty, interest, costs and expenses of sale.

i. No sale of any property may be made without at least fifteen days’ notice being given by publishing a notice of the sale at least two times in a newspaper of general circulation within the city, or if there is no such newspaper, by posting within the times stated a notice in seven public places within the city, and by mailing by certified first class prepaid mail a copy of the notice to the person assessed.

ii. Sale. The sale of such property shall be made at public auction and such personal property shall be sold to the highest bidder for cash. All sales of personal property shall be made at a time of day to be fixed by the city clerk in such notice, and the same shall be fixed between the hours of ten a.m. and five p.m. of the day of the sale, and the sale may be adjourned by the city clerk from day to day for want of purchasers of sufficient bids, or if for any valid reason the city clerk is prevented from attending at the time and place set for the sale, the sale may be adjourned and continued from day to day if necessary until all of such personal property has been sold to pay the costs and expenses provided in this chapter, and the tax, penalty and interest in full.

iii. From the proceeds of the sale which shall convey all the right title and interest of the person assessed, shall be paid, in the following order: the actual expenses of sale, tax, penalty, interest, and other costs including attorney’s fees.

iv. Schedule of Costs. The following shall be the schedule of costs and attorney’s fees applicable to all personal property tax delinquencies collected or sought to be collected using the provisions of this chapter:

(A) If redemption is made prior to sale:

(1) Actual costs of seizing and preserving the property;

(2) Actual costs of publication and giving notice;

(3) Attorney’s fees in the amount of twenty percent of the first one hundred dollars, but with a minimum of ten dollars, fifteen percent of the next five hundred dollars and ten percent thereafter.

(B) If no redemption is made before the property is sold:

(1) All costs stated above plus any actual accruing costs;

(2) Attorney’s fees in addition to those stated of fifteen percent of the first one hundred dollars but with a minimum of ten dollars, five percent of the balance.

v. Any remaining sums shall be returned to the person assessed, or if not claimed within six months shall become the property of the city, and sale is forever barred.

vi. The city clerk shall apply the proceeds of the sale in the manner set forth, and shall keep a record of all such sales and all such proceedings, and shall keep on file the returns of the city clerk relating thereto, and in all cases of sale of personal property, the city clerk shall, if requested, give the purchaser a bill of sale on behalf of the city under his/her hand. (Ord. 01-12 § 1 (part), 2001; Ord. 13-11 § 3, 2013; Ord. 16-10 § 3, 2016.)

4.15.235 General foreclosure of real property.

A. The city shall bring one general foreclosure proceeding in rem against the real property included in the foreclosure list. If the owner is unknown, the property is proceeded against as belonging to “unknown owner.”

B. Costs of Foreclosure. It is the intent of this chapter and AS 29.45.320 through 29.45.480 that the costs of carrying out the foreclosure process shall ultimately be borne by the delinquent taxpayer, not the city of Dillingham.

1. In order to accomplish the intent of this chapter and AS 29.45.320 through 29.45.480, the city hereby establishes the following foreclosure cost fees, which are intended to reimburse the city for the costs of foreclosure, including but not limited to costs of publication, mailing, attorney’s fees, filing and recording fees, title search, and costs incurred to comply with Section 4.15.310(a):

a. A flat fee of one hundred fifty dollars per property identified on the foreclosure list if the delinquent amount is not paid before the first publication or posting of the foreclosure list pursuant to Section 4.15.200(A)(2) and before judgment is entered; and

b. Actual costs incurred, including attorney’s fees and mailing, will be prorated equally to each property, and the cost of each title search will be assigned to each owner as identified on the foreclosure list if the delinquent amount is paid after judgment is entered and before the first publication of the notice of the expiration of the redemption period; and, if applicable;

c. Actual costs incurred, including the costs of publication, mailing, attorney’s fees, and filing and recording fees, prorated equally to each property identified on the foreclosure list if the delinquent amount is paid after the first publication of the notice of the expiration of the redemption period.

2. If the city incurs extraordinary costs of foreclosure significantly in excess of the applicable fee and costs set forth above, or if the court awards specific costs or attorney’s fees against a particular property, the fee and costs stated above will be in addition to the extraordinary costs.

3. All applicable fees and costs assessed pursuant to this section shall be included in the lien authorized by this chapter and must be paid to redeem or repurchase the property or otherwise release the lien. Unless otherwise ordered by the court, the applicable fee and costs set forth in subsection (B)(1) of this section may not be waived or reduced. (Ord. 16-10 § 4, 2016; Ord. 16-11 § 1, 2016.)

4.15.240 Answer and objection.

A person having an interest in a lot on the foreclosure list may file and answer within thirty days after the date of last publication, specifying the person’s objection. The court shall make its decision in summary proceedings. The foreclosure list is prima facie evidence that the assessment and levy of the tax is valid and that the tax is unpaid. (Ord. 01-12 § 1 (part), 2001.)

4.15.250 Judgment.

The court shall in a proper case give judgment and decree that the tax liens be foreclosed. It is a separate judgment against each lot and a lien on each lot. (Ord. 01-12 § 1 (part), 2001.)

4.15.260 Transfer and appeal.

A. Foreclosed properties are transferred to the city for the lien amount. When answers are filed the court may enter judgment against and order the transfer to the city of all other properties on the list pending determination of the matters in controversy. If the city prevails over any answer and objection, it shall be entitled to an award of the attorney’s fees incurred to defeat the answer and objection, which shall be included in the judgment and lien authorized by this chapter.

B. The court clerk shall deliver a certified copy of the judgment and decree to the city clerk. The certified judgment and decree constitutes a transfer to the city.

C. The judgment and decree stops objections to it that could have been presented before judgment and decree. Appeal from a judgment and decree of foreclosure, or from a final order in the proceeding, may be taken in a manner provided for appeals in civil actions. (Ord. 01-12 § 1 (part), 2001; Ord. 16-10 § 5, 2016.)

4.15.270 Redemption period.

Properties transferred to the municipality are held by the city for at least one year. During the redemption period a party having an interest in the property may redeem it by paying the lien amount plus penalties, interest, and the applicable foreclosure fee/costs set forth in Section 4.15.235(B). Property redeemed is subject to all accrued taxes, assessments, liens and claims as though it had continued in private ownership. Only the amount applicable under the judgment and decree, including the applicable fee and costs, must be paid in order to redeem the property. (Ord. 01-12 § 1 (part), 2001; Ord. 16-10 § 6, 2016.)

4.15.280 Effect.

Receipt of redemption money by the city releases the judgment obtained under AS 29.45.380. The clerk or the clerk’s designee shall record the redemption and issue a certificate containing a property description, the redemption amount, and the dates of judgment and decree of foreclosure. The clerk or the clerk’s designee shall collect the recording fee at the time of redemption and shall file the certificate with the record as part of the judgment roll. (Ord. 01-12 § 1 (part), 2001.)

4.15.290 Additional liens.

If a property included in a foreclosure list is removed after payment of delinquencies or redemption by another lien holder, the payment represented by receipt for payment constitutes an additional lien on the property, collectible by the lien holder in the same manner as the original lien. (Amended during 3/02 supplement.)

4.15.300 Possession during redemption period.

Foreclosure does not affect the former owner’s right to possession during the redemption period. If waste is committed by the former owner, or by anyone acting under the permission or control of the former owner, the city may declare an immediate forfeiture of the right to possession. (Ord. 01-12 § 1 (part), 2001.)

4.15.310 Expiration.

A. At least thirty days before the expiration of the redemption period the clerk or the clerk’s designee shall publish a redemption period expiration notice. The notice must contain the date of judgment, the date of expiration of the period of redemption, and a warning that all properties ordered sold under the judgment, unless redeemed, shall be deeded to the city immediately on expiration of the period of redemption, and that every right or interest of a person in the properties will be forfeited forever to the city. The notice appears once a week for four consecutive weeks in a newspaper of general circulation distributed in the city. If there is no newspaper of general circulation distributed in the city, the notice shall be posted in three public places for at least four consecutive weeks. The clerk shall send a copy of the notice by certified mail to each record owner of property against which a judgment of foreclosure has been taken, and if the assessed value of the property is more than ten thousand dollars, to all holders of mortgages or other liens of record on the property. The notice shall be mailed within five days after the first publication. The mailing shall be sufficient if mailed to the property owner and to the holder of a mortgage or recorded lien at the last address of record.

B. The right of redemption expires thirty days after the date of the first notice publication.

C. Costs incurred in the determination of holders of mortgages and other liens, if recorded, and costs of notice publication incurred by the city under subsection A of this section, are a lien on the property and may be recovered by the city as provided in Section 4.15.235. (Ord. 01-12 § 1 (part), 2001; Ord. 16-10 § 7, 2016.)

4.15.320 Deed to the city.

A. Unredeemed property in the city is deeded to the city, subject to the payment by the city of unpaid taxes and costs of foreclosure levied against the property before foreclosure. The deed shall be recorded in the recording district in which the property is located.

B. Conveyance gives the city clear title, except for prior recorded tax liens of the United States and the state.

C. A deed is invalid for irregularities, omissions or defects in the proceedings under this chapter, unless the former owner has been misled so as to be injured. Two years after the date of the deed, its validity is conclusively presumed, and a claim of the former owner or other person having an interest in the property is forever barred. (Ord. 01-12 § 1 (part), 2001.)

4.15.330 Disposition and sale of foreclosed property.

A. The city shall determine by ordinance whether foreclosed property deeded to the city shall be retained for a public purpose. The ordinance must contain the legal description of the property, the address or a general description of the property sufficient to provide the public with notice of its location, and the name of the last record owner of the property as the name appears on the assessment roll.

B. Tax-foreclosed property conveyed to the city by tax foreclosure and not required for a public purpose may be sold. Before the sale of tax-foreclosed property held for a public purpose, the city, by ordinance, shall determine that a public need does not exist. The ordinance must contain the information required under subsection A of this section.

C. The clerk or the clerk’s designee shall send a copy of the published notice of hearing of an ordinance to consider a determination required under subsection A or B of this section by certified mail to the former record owner of the property that is the subject of the ordinance. The notice shall be mailed within five days after its first publication and shall be sufficient if mailed to the last record owner of the property as the name appears on the assessment roll of the city.

D. Provisions of subsection C of this section do not apply with respect to property that has been held by the city for a period of more than ten years after the close of the redemption period. (Ord. 01-12 § 1 (part), 2001.)

4.15.340 Repurchase by record owner.

A. The record owner at the time of tax foreclosure of property acquired by the city, or the assigns of that record owner, may, within ten years and before the sale or contract of sale of the tax-foreclosed property by the city, repurchase the property. The city shall sell the property for the full amount applicable to the property under the judgment and decree plus: (1) interest not to exceed fifteen percent a year from the date of entry of the judgment of foreclosure to the date of repurchase; (2) delinquent taxes assessed and levied as though it had continued in private ownership; (3) costs of foreclosure and sale incurred by the city or the applicable foreclosure fee and costs set forth in Section 4.15.235, whichever is greater; and (4) costs of maintaining and managing the property incurred by the city, including insurance, repairs, association dues and management fees, that exceed amounts received by the city for the use of the property.

B. After adoption of an ordinance providing for the retention of tax-foreclosed property by the city for a public purpose, the right of the former record owner to repurchase the property ceases. (Ord. 01-12 § 1 (part), 2001; Ord. 16-10 § 8, 2016.)

4.15.350 Proceeds of tax sale.

If tax-foreclosed real property that has been held by the city for less than ten years after the close of the redemption period and never designated for a public purpose is sold at a tax-foreclosures sale, the former record owner is entitled to the portion of the proceeds of the sale that exceeds the amount of unpaid taxes; the amount equal to taxes that would have been assessed and levied after foreclosure if the property had continued in private ownership; penalty, interest and costs to the city of foreclosing and selling the property; and costs to the city of the property. If the proceeds of the sale of tax-foreclosed property exceed the total of unpaid and delinquent taxes, penalty, interest and costs, the city shall provide the former owner of the property written notice advising of the amount of the excess and the manner in which a claim for the balance of the proceeds may be submitted. Notice is sufficient under this section if mailed to the former record owner at the last address of record of the former record owner. On presentation of a proper claim, the city shall remit the excess to the former record owner. A claim for the excess filed after six months of the date of sale is forever barred. (Ord. 01-12 § 1 (part), 2001.)

4.15.360 Refund of taxes.

A. If a taxpayer pays taxes under protest, the taxpayer may bring suit in the Superior Court against the city for recovery of the taxes. If judgment for recovery is given against the city, or if in the absence of suit, it becomes obvious to the governing body that judgment for recovery of the taxes would be obtained if legal proceedings were brought, the city shall refund the amount of the taxes to the taxpayer with interest at eight percent from the date of payment plus costs.

B. If, in payment of taxes legally imposed, a remittance by a taxpayer through error otherwise exceeds the amount due, and the city, on audit of the account in question, is satisfied that this is the case, the city shall refund the excess to the taxpayer with interest at eight percent from the date of payment. A claim for refund filed one year after the due date of the tax is forever barred.

C. The governing body may correct manifest clerical errors at any time. (Ord. 01-12 § 1 (part), 2001.)

4.15.365 Repayment plan.

A. A delinquent taxpayer and the city may agree to enter a repayment plan. No repayment plan agreement shall be valid unless agreed to by the parties in writing.

B. Only persons who would be eligible to enter a repayment plan under Section 4.20.265(B) shall be eligible for a repayment plan under this section. A repayment plan agreement executed under the authority of this chapter must include substantially the same terms as sales tax repayment plans as required by Section 4.20.265(C), except the delinquent taxpayer shall not be required to agree to provide a security interest in the form of a lien as required by Section 4.20.265(C)(6).

C. If a property owner and the city execute a valid repayment plan and the property owner does not default prior to the time the annual foreclosure roll is prepared, the property shall not be placed on the foreclosure roll for that year. In the event a property is excluded from the annual foreclosure roll as provided in this subsection, the city retains every right provided by law to foreclose on the property in the event of a default on the repayment plan.

D. If a taxpayer fails to pay one or more payments as agreed, the taxpayer and subject property shall be in default and the entire amount owed at the time of default shall become immediately due. The resulting delinquency shall be considered to have occurred in the year of the default on the payment plan, regardless of the year or years in which the tax accrued. The city will send the taxpayer a notice of default. The city may then foreclose on the property or take any other remedy available under the law including placing the seller on the city’s denied services list using the procedures set forth in Chapter 4.40. (Ord. 13-11 § 5, 2013.)