Chapter 3.12 PROPERTY TAXES

All property not expressly exempt by the city, or exempted from taxation by the city under federal or state constitutional provisions, shall be subject to annual taxation at its full and true value based upon the actual value of the property assessed. (Ord. 23-01 § 1)

3.12.022 Taxation of real property.

A. Property Subject to Taxation. For the purposes of this chapter, real property subject to taxation includes, among other things, trailers and mobile homes, and lean-to and similar structures attached or contiguous thereto. The property taxes levied against mobile homes and trailers classified as real property may be collected in accordance with the procedures established for collection of personal property taxes within the city.

B. Trailers and Mobile Homes. The words “trailers and mobile homes” include all forms of housing adaptable to being moved by a power connected thereto, and which are or can be used for residential, business, commercial or office purpose; provided, however, that those trailers which are:

1. Used for camping or recreational purposes only; or

2. Not affixed to the site and not connected with utilities, shall be considered personal property and exempt from taxation.

C. Conclusive Presumption. A trailer or mobile home is conclusively presumed to be affixed to the land and real property for the purposes of taxation when it has remained at a fixed site for more than ninety days.

D. Ownership. When the ownership of a trailer or mobile home and attachments and appurtenances is different from the land upon which it rests, the city may, in its discretion assess and tax the ownership separately. (Ord. 23-01 § 1)

3.12.030 Property exempt from taxation.

A. The following property is exempt from general taxation:

1. Property exempted by state or federal law including all properties listed in AS 29.45.030;

2. All other personal property not subject to taxation under subsection (A)(1) of this section;

3. The real property owned and occupied as the primary residence and permanent place of abode by a: (i) resident sixty-five years of age or older; (ii) disabled veteran; or (iii) resident at least sixty years old who is the widow or widower of a person who qualified for an exemption under subsection (A)(3)(i) or (ii) of this section, is exempt from taxation on the first one hundred fifty thousand dollars of the assessed value of the real property. The city may, in the case of hardship, provide for exemption beyond the first one hundred fifty thousand dollars of assessed value in accordance with 3 AAC 135.040(c), as hereafter amended. 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. Real property may not be exempted under this subsection if the assessor determines, after notice and hearing to the parties, that the property was conveyed to the applicant primarily for the purpose of obtaining the exemption. The determination of the assessor may be appealed as set forth in Section 3.12.110.

a. An exemption may not be granted under subsection (A)(3) of this section except upon written application for the exemption on a form approved by the State Assessor for use by local assessors. The claimant must file a separate application for each assessment year in which the exemption is sought. The claimant must file the application no later than January 15th of the assessment year for which the exemption is sought. If an application is filed within the required time and is approved by the assessor, the assessor shall allow an exemption in accordance with the provisions of this section. The city council for good cause shown may waive during a year the claimant’s failure to make timely application for exemption for the current year and authorize the assessor to accept the application as if timely filed. If a failure to file by January 15th of the assessment year has been waived as provided in this subsection and the application for exemption is approved, the amount of tax that the claimant has already paid for the assessment year for the property exempted shall be refunded to the claimant. The assessor shall require proof in the form the assessor considers necessary of the right and amount of an exemption claimed under subsection (A)(3) of this section. The assessor may require proof under this section at any time.

4. Property that qualifies for a low-income housing credit under 26 U.S.C. 42 shall be assessed on the basis of actual income derived from the property without adjustment based on the amount of any federal income tax credit given for the property. (Ord. 23-01 § 1)

3.12.033 Structures containing fire protection systems partial exemption from taxation.

A. An amount equal to two percent of the assessed value of a structure is exempt from municipal property taxation if the structure contains a fire protection system approved under AS 18.70.081 that is in operating condition and is incorporated as a fixture of a structure.

1. The amount of the exemption shall be equal to two percent of the assessed value of the structure based on the assessment as of January 1st of the first year in which an application is submitted and approved pursuant to subsection B of this section.

2. An application for exemption will be denied if the fire protection system was not installed and operational prior to January 1st of the year for which the application is submitted.

3. The amount of the exemption shall be fixed for all subsequent years for which the system qualifies for the exemption at the amount initially established in the first year an application is submitted and approved.

B. An exemption may not be granted under this section except upon written application on a form provided by the city of Valdez. The application must be filed no later than January 15th of the year for which the exemption is sought.

C. Failure to comply with the conditions in subsections A and B of this section will result in the exemption being deemed invalid for the subject property. In order to verify that the property is in compliance with subsection A of this section, the city shall require verification annually by the property owner no later than January 15th of the assessment year. (Ord. 23-01 § 1)

3.12.040 Additional exemptions.

Seventy-six thousand one hundred fifty-five dollars of the assessed value or the maximum allowed under state law, whichever is greater, of a principal residence owned and occupied by the taxpayer is exempt from taxation. The city council may by ordinance annually adjust the exemption set forth herein by the amount calculated by the State Assessor to reflect the increase, if any, in the annual average cost of living, using the U.S. Department of Labor CPI-U for Anchorage. (Ord. 24-03 § 1; Ord. 22-12 § 1; Ord. 23-01 § 1)

3.12.050 Community purpose property exemption.

The property of an organization not organized for business or profit-making purposes and used exclusively for community purposes may be exempt from taxation under this chapter. That portion of the property regularly used for commercial purposes other than the organization’s exempt purpose shall be subject to taxation by the city. In order to qualify for this exemption, the applicant must file a written application for the exemption no later than January 15th of each assessment year for which the exemption is sought. The application shall be on a form prescribed by the city and shall include all information determined necessary by the city to determine the character of the organization and the nature of the uses made of the property. An exemption granted under this section shall be only for the assessment year for which the exemption is sought. (Ord. 23-01 § 1)

3.12.055 Tax adjustments for property affected by disaster.

A. An owner of taxable property within the city, or an agent or assign of the property owner, whose property was damaged by a disaster, may apply for reassessment of that property under this section. This section shall not apply to oil and gas property as defined in AS 43.56.010 et seq.

B. For purposes of this section, “disaster” means the occurrence or imminent threat of widespread or severe damage, injury, loss of life or property resulting from an incident such as storm, high water, tsunami, earthquake, volcanic eruption, landslide, mudslide, avalanche, fire, flood, or explosion.

C. Application for Reassessment.

1. The application for reassessment describing the condition and value of the property immediately before and after the damage or destruction must be filed with the city clerk within one hundred twenty days after the disaster. The application shall be in the form prescribed by the city clerk and the applicant must include with the application a sworn statement that the property losses exceed ten thousand dollars.

2. If no application is made and the city manager determines that within the calendar year a property has suffered damage caused by a disaster that may qualify the property owner for relief under this section, the city clerk may provide the last known owner of the property with an application for reassessment. The property owner must file the completed application within sixty days of the date the application was mailed or otherwise provided to the property owner. The applicant must include with the application a sworn statement that the property losses exceed ten thousand dollars.

3. Upon receiving a timely and completed application, the assessor shall inspect the property and verify the prior year’s full and true value of land, improvements, or the proposed or certified current year’s value immediately before and after the damage or destruction. Damages to land or improvements that do not appear on the assessment roll are not eligible for consideration under this section.

D. Notice of Reassessment. The assessor shall notify the applicant in writing of the amount of the proposed reassessment. The notice shall state that the applicant may appeal the proposed reassessment to the board of equalization and that any notice of appeal must be filed within ten days after the date of mailing the notice.

E. Appeal. A property owner or agent or assign of the property owner may appeal to the board of equalization for relief from an alleged error in reassessment under this section by filing a written appeal with the city clerk specifying the grounds for appeal as required under Section 3.12.110(B) within ten days after the mailing of the notice of assessment or reassessment. Otherwise, the right of appeal ceases unless the board finds that the taxpayer is unable to comply.

F. Tax Adjustment. A reduction in taxes may be made only on losses in excess of ten thousand dollars for the remainder of the year following the disaster. On reassessment, the city shall recalculate the tax owed and refund the excess amount of taxes that have already been paid.

G. Effect of Revised Assessment. The assessed value of the property in its damaged condition shall be the taxable value of the property until December 31st of the year in which the disaster occurred. Thereafter, the assessor shall determine the full and true value of the property in accordance with normal standards and methods for assessments. (Ord. 23-03 § 1)

3.12.060 Determination of annual levy, due dates, etc.—Limitation on amount of levy.

The rate of levy of tax, the date of equalization of the tax and the date when taxes shall become delinquent shall be fixed by resolution of the city council, and the levy for school and municipal purposes shall be separately made and fixed, but the aggregate thereof shall not exceed two percent of the assessed value of the property assessed. This limitation does not apply to taxes required to fund the cost of judgments entered against the city or pledged to pay or secure the payment of the principal and interest on bonds. Taxes to pay or secure the payment of principal and interest on bonds may be levied without limitation as to rate or amount regardless of whether the bonds were in default or in danger of default. (Ord. 23-01 § 1)

3.12.070 Assessment procedure generally—Preparation of assessment roll.

A. All taxable property shall be assessed at its true and full value, and all assessments shall be uniform and equal and based upon the actual value of the property assessed. The “full and true value” is the estimated price which the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer both conversant with the property and with prevailing general price levels.

B. The city assessor shall annually assess and list on a tax roll all real property in the name of the person by whom it is owned on the first day of January. If no owner or claimant to the property can be discovered, the property shall be assessed to the unknown owner.

C. The assessor shall complete the listings for the annual assessment roll of all real property within the city before March 1st, or other such date as may be established by the city council each year. The listing of all taxable property may be made upon permanent separate ledger cards which will be the combined assessment roll and tax ledger. Real property shall be assessed to the owner of record as shown in the records of the recorder of the district; provided, that any other person having an interest in the property may be listed on the assessment records with the owner. The person in whose name any property is listed as owner thereof shall be conclusively presumed to be the legal owner of record. If the owner of land is unknown, such land may be assessed to an “Unknown Owner” or “Unknown Owners.” No assessment shall be invalidated by a mistake, omission or error in the name of the owner of the real property assessed, if the property is correctly described.

D. The assessor may list real property located in any subdivision by lot and block or tract description, and unsubdivided property according to the land office section and township survey description, or by giving the boundaries thereof, or by reference to the book and page of the records of the recorder where the description may be found or by designation of tax lot number, referring to a public record kept by the assessor of descriptions of real property, or in such other manner as to cause the description to be capable of being made certain. Initial letters, abbreviations, fractions and exponents to designate the township, range, section or part of a section, or the number of any lot or block or part thereof, or any distance, course, bearing or direction, may be employed in any such description of real property.

E. The assessor may require each person having ownership or control of or an interest in property to submit a return in the form prescribed by the assessor, based on property values existing on January 1st, except as otherwise provided in this chapter. By written notice, the assessor may require a person to provide additional information within thirty days.

F. The assessor is not bound to accept a return as correct. The assessor may make an independent investigation of property returns or of taxable property on which no return has been filed. In either case, the assessor may make the assessor’s own valuation of the taxable property and this valuation is prima facie evidence of the value of the property.

G. For investigation, the assessor or the assessor’s agent may enter real property during reasonable hours to examine visible personal property and the exterior of a dwelling or other structure on the real property. The assessor or the assessor’s agent may enter and examine the interior of a dwelling or other structure or the personal property in it only (1) if the structure is under construction and not yet occupied; (2) with the permission of a person in actual possession of the structure; or (3) in accordance with a court order to compel the entry and inspection. The assessor or the assessor’s agent may examine all property records involved. A person shall, on request, furnish to the assessor or the assessor’s agent assistance for the investigation and permit the assessor or the assessor’s agent to enter a dwelling or other structure to examine the structure or personal property in it during reasonable hours. The assessor may seek a court order to compel entry and production of records needed for assessment purposes.

An assessor may examine a person on oath. On request, the person shall submit to examination at a reasonable time and place selected by the assessor. (Ord. 23-01 § 1)

3.12.072 Violations—Penalties.

For knowingly failing to file a tax statement required by the assessor, or knowingly making a false statement required by this chapter relative to the amount, location, kind or value of property subject to taxation with intent to evade the taxation, a person having ownership or control of or an interest in the property subject to taxation shall be subject to a fine up to one thousand dollars or imprisonment for ninety days. (Ord. 23-01 § 1)

3.12.080 Reevaluation.

A systematic reevaluation of taxable real and personal property undertaken by the assessor, whether of specific areas in which real property is located or of specific classes of real or personal property to be assessed, shall be made only in accordance with a resolution or other act of the city council directing a systematic reevaluation of all taxable property within the city over the shortest period of time practicable, as determined by the city council and fixed in the resolution or other act of the council. (Ord. 23-01 § 1)

3.12.090 Contents of assessment roll.

The assessor shall prepare an annual assessment roll. The roll must contain:

A. The names and addresses of all persons with property subject to an ad valorem tax;

B. A description of all property subject to an ad valorem tax;

C. The assessed value of all property subject to an ad valorem tax. (Ord. 23-01 § 1)

3.12.100 Notices of assessment.

A. The city on behalf of the assessor shall give to every person named in the assessment roll a notice of assessment showing the assessed value of the person’s property that is subject to an ad valorem tax. On each assessment notice shall be printed a brief summary of the dates when taxes are payable, delinquent, and subject to penalty and interest, the dates when the board of equalization will sit and any other particulars specified by the city council. Sufficient assessment notice is given if mailed by first class mail thirty days before the equalization hearings. If the address is not known to the assessor, the notice may be addressed to the person at the post office nearest the property. Notice is effective on the date of mailing.

B. When notices of assessment have been mailed, the city shall cause notice that the assessment rolls have been completed to be posted at three public places for a period of two weeks. Such notice shall also state when and where the equalization hearings shall be held, and that an appeal may be taken to the board of equalization upon the timely filing of a completed appeal form with the city clerk. (Ord. 23-01 § 1)

3.12.105 Corrections and adjustments.

A person receiving a notice of assessment shall advise the assessor of any errors or omissions in the assessment of the person’s property. The assessor may correct errors or omissions in the assessment roll at any time before the initial board of equalization hearing. If errors found in the preparation of the assessment roll are adjusted, the assessor shall mail a corrected notice allowing thirty days for appeal to the board of equalization. If the property owner has timely filed an appeal prior to the issuance of a corrected notice, the appeal process shall proceed as provided in Section 3.12.110. (Ord. 23-01 § 1)

3.12.110 Appeals to board of equalization.

A. A person whose name appears on the assessment roll or the agent or assigns of that person may appeal to the board of equalization for relief from an alleged error in valuation not adjusted by the assessor to the taxpayer’s satisfaction.

B. The appellant shall, within thirty days after the date of mailing of the notice of assessment, submit to the assessor a written appeal using the appeal form available at the city clerk’s office specifying: (1) the name of the property owner; (2) a legal description of the property; (3) grounds for appeal; (4) supporting evidence; and (5) the appellant’s opinion of value. For purposes of this section, the appeal is submitted on the date it is received in the office of the city clerk. If an appeal is not properly submitted to the city clerk’s office within thirty days after the mailing of the notice of assessment, the right of appeal ceases unless the board of equalization finds that the taxpayer was unable to comply.

1. Before the initial board of equalization hearing, a taxpayer who seeks to appeal the assessor’s valuation after the thirty-day appeal period has closed shall file a letter and supporting documents, if any, with the city clerk stating the reasons why the taxpayer was unable to comply within the thirty-day appeal period. The board shall consider each letter but shall not consider evidence regarding property valuation. The board shall only consider reasons the taxpayer was unable to comply within the thirty-day appeal period. The taxpayer shall have five minutes to make an oral presentation solely focused on the taxpayer’s inability to comply within the thirty-day appeal period. The board’s determination shall be based on the taxpayer’s letter and any supporting documents or oral presentation. If the request is granted, the taxpayer shall have seven days from the board’s decision to file a valuation appeal and submit all evidence required by this title. The city clerk shall send notice of the board’s decision to the taxpayer.

2. The board shall interpret the term “unable to comply” as meaning that a taxpayer must demonstrate compelling reasons or circumstances that would have prevented a reasonable person under the circumstances from filing an appeal. The term “unable to comply” does not include situations in which the taxpayer forgot about or overlooked the assessment notice, was out of town during the thirty-day appeal period for filing an appeal, or similar situations. Rather, it covers situations that are beyond the control of the taxpayer and, as a practical matter, prevent the taxpayer from recognizing what is at stake and dealing with it. Such situations would include a physical or mental disability serious enough to prevent the taxpayer from dealing rationally with the taxpayer’s financial affairs.

C. The grounds for appeal are: unequal, excessive, improper or under valuation of the property not adjusted by the assessor to the property owner’s satisfaction. The potential validity or invalidity of asserted errors in assessment shall have no bearing on the determination of whether the taxpayer was unable to timely file an appeal.

D. If the party making the appeal is an assign of the record owner, documentation of the assignment must bear a stamp reflecting the recording district and the book and page number or serial number of the recorded assignment. If the party making the appeal is an agent of the property owner, the property owner’s signature granting the authority must be notarized and attached to the appeal form.

E. After the time for filing valuation appeals has expired and after consultation with the assessor, and at the direction of the chair of the board of equalization, the city clerk shall schedule appeals to be heard by the board of equalization beginning on the dates identified in the notice of assessment. The city clerk on behalf of the assessor shall notify each appellant by mail of the time and place of hearing at least fifteen days before the hearing.

F. The board of equalization is given the discretion to determine whether to grant a request for a continuance. A hearing shall be scheduled for all appeals timely filed by submitting a completed appeal form.

G. Upon receipt of a timely filed and completed appeal form, the assessor shall make a record of the same in such form as the city council may direct. The assessor shall prepare for use by the board of equalization a summary of assessment data relating to each assessment that is appealed.

H. If the assessor and the appellant mutually resolve a duly filed appeal prior to a hearing by the board of equalization, the appellant may withdraw that appeal. The appellant’s withdrawal must be filed in writing with the assessor or stated under oath at a board of equalization hearing prior to the assessor closing the appeal.

I. The city may appeal an assessment to the board of equalization in the same manner as a taxpayer. Within five days after receipt of an appeal by the city, the assessor shall notify the person whose property assessment is being appealed. The property owner may appear and participate in an appeal of an assessment by the city. (Ord. 23-01 § 1)

3.12.120 Board of equalization—Composition and procedure.

A. The city council sits as the board of equalization for the purpose of hearing an appeal from a determination of the assessor, or it may delegate this authority to one or more boards appointed by it. An appointed board may be composed of not less than three persons, who shall be members of the city council, city residents, or a combination of city council members and residents. Qualifications for membership shall be established by ordinance.

B. The board may alter an assessment of a property only pursuant to an appeal filed as to the particular property.

C. All appeals must be heard and decided before June 1st, unless the board finds a hearing after this date will not prejudice the appellant and the delay is administratively justified. The board must also find that the proposed hearing date will enable the assessor to substantially comply with the requirements that the assessment roll be certified by June 1st. The meetings of the board may be scheduled either on weekends, during business hours, or during evening hours. In no event may an appeal hearing begin after midnight and the board shall adjourn no later than one a.m. If an appeal hearing is continued, the chair shall schedule a date and time for continuance of the appeal hearing.

D. A quorum of the board must be present for the board of equalization to convene and take action. No actions shall be taken by the board except by concurrence of at least four members.

E. The chair shall preside over the board hearing. In the absence of the chair, the vice-chair shall preside. If both are absent, the members present shall select a person to preside. The city clerk shall attend the hearings to record the proceedings, record votes, administer the oaths to witnesses, and prepare the decision forms. The city attorney or designee shall attend the hearing to advise the board.

F. The chair shall open the board session by calling the board to order, reading a summary of procedures for the board, and by calling each appellant’s name and asking if the appellant or representative is present. The chair shall bring each appeal before the board in the order scheduled by the city clerk.

G. Hearing.

1. An appeal before the board of equalization shall be conducted in accordance with the procedures adopted by the board, in addition to the following rules:

a. Order of Appeals—Failure of Appellant to Appeal. Appeals shall be heard in the order scheduled by the city clerk. If an appellant is not present at the time scheduled, the appeal will be deferred and the next scheduled appellant heard. When the board has heard the appeals of all scheduled appellants who have appeared at the hearing, it shall take up the appeals of absent appellants. If any appellant remains absent after deferral of the hearing, the board may proceed with the hearing upon whatever material has been previously filed by such absent appellant.

b. Oath to Be Administered. Anyone testifying before the board shall be administered an oath prior to giving testimony.

c. Record. The city clerk shall be ex officio clerk of the board and shall keep verbatim stenographic records or electronic recordings of the board’s proceedings, showing the vote of each member on every question and all the evidence presented.

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

e. 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 hearing. If the valuation is found to be too low, the board of equalization may raise the assessment. The city shall make available to the appellant all reasonably pertinent documents requested for presentation of the appeal.

f. Rules of Evidence. The hearing of an ordinary routine appeal shall be conducted informally. The board shall not be restricted by the formal rules of evidence; however, the chair may exclude evidence irrelevant to the issues appealed. Hearsay evidence may be considered, provided 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.

g. Ordinary Routine Appeal. In a hearing for an ordinary routine appeal, each side shall have a total of no more than thirty minutes to present their case. Each side shall be responsible for dividing their thirty minutes between oral presentation, argument, testimony (including witness testimony), and rebuttal. The board may expand or limit the length of the hearing depending on its complexity, or take other action to expedite the proceedings.

h. Complex Appeal. In the event of a complex appeal, the chair may elevate the appeal to include a more formal hearing. If an appeal is determined by the chair to be complex, then the appeal process will follow complex appeal procedures adopted by the board.

i. Order of Presentation. The appellant shall present argument first. Following the appellant, the assessor shall present the city’s argument. The appellant may, at the discretion of the chair, make rebuttal presentations directed solely to the issues raised by the assessor. The members of the board may ask questions through the chair 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. All testimony before the board shall be under oath.

k. Board Decisions. Upon presentation of all evidence and testimony, the board may conclude the hearing and render a decision on the appeal. The board may adjust a valuation upwards or downwards. Decisions shall be in the form of motions, with specific findings of fact therefor, and the vote shall be taken by “yes” and “no,” which shall be permanently entered on the record of the proceedings. A majority vote in the affirmative adopts any motion.

l. Certification. The board of equalization shall certify its actions to the assessor within seven days. Except as to supplementary assessments, the assessor shall enter the changes and certify the final assessment roll by June 1st.

m. Additional Rules and Procedures. Other procedures and rules of operation may be adopted by the board of equalization.

n. Appeal of Board Decision. The appellant or the assessor may appeal a decision of the board to the superior court within thirty calendar days in accordance with the Alaska Rules of Appellate Procedure. (Ord. 23-01 § 1)

3.12.130 Completion of assessment roll—Certification of assessment roll.

After the hearings held by the board of equalization are concluded, the assessor shall complete the annual assessment roll, at a time to be determined by the city council but no later than June 1st and shall certify the same. No assessed valuations shall thereafter be changed unless a change is required by court order. Any supplementary assessment rolls shall be prepared and certified as may be expedient or necessary.

All taxes to be levied or collected, except as otherwise provided, shall be calculated, levied and collected upon the assessed values entered in the assessment roll and certified by the assessor as correct, subject to the taxpayers right of appeal to the superior court. (Ord. 23-01 § 1)

3.12.140 Appeals to superior court.

An appellant or the assessor may appeal a determination of the board of equalization to the superior court as provided by rules of court applicable to appeals from the decisions of administrative agents. Appeals are heard on the record established at the hearing before the board of equalization. Notwithstanding other provisions in this chapter, a determination of the assessor as to whether property is taxable under law may be appealed directly to the superior court. (Ord. 23-01 § 1)

3.12.150 Supplementary assessment rolls.

The assessor shall include property omitted from the assessment roll on a supplementary roll. All the duties imposed upon the assessor and the city clerk with respect to the annual assessment roll and all the provisions of this chapter relating to assessment rolls shall, as far as applicable, apply to supplementary assessment rolls. (Ord. 23-01 § 1)

3.12.160 Delivery of assessment roll to city council; validity of assessment rolls.

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

B. Every assessment roll as completed and certified by the assessor, and as corrected and amended from time to time in conformity with this chapter and the decisions of the board of equalization, 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. (Ord. 23-01 § 1)

3.12.170 Determination of tax rate and delinquent date—Tax statements—Penalties for delinquent payment.

A. Tax Rate. The city council shall, by resolution, fix the rate of tax levy and designate the number of mills upon each dollar of assessed real and personal property that shall be levied, shall levy such tax in accordance therewith, and shall determine the date when taxes shall become delinquent. If the total tax assessed to any owner is ten dollars or less, then the administration may delete such tax obligation from the tax roll.

B. Tax Statements. The city shall then prepare and mail tax statements to the persons listed as the owners of record, lessees or persons controlling real property at least thirty days prior to the date taxes owed become due.

C. Installments. Any taxpayer may pay the property tax for the year in two installments of equal amounts except when the property tax for the year amounts to less than twenty dollars. Any installment shall become delinquent on the first business day following the tax installment due date.

D. Delinquency.

1. If an installment is not paid in full by the due date, the unpaid balance of that installment becomes delinquent and penalty, interest and costs accrue as follows:

a. Penalty. A penalty of eight percent on the unpaid balance of a tax installment which was due shall be added to the delinquent tax.

b. Accrual of Interest. In addition to the penalty set out in subsection (D)(1)(a) of this section, interest not to exceed the rate of fifteen percent per year shall be charged on the unpaid balance of delinquent taxes. No interest shall be applied until the first day of the month following the due date of the tax bill. When interest is to be applied, it shall be calculated on a monthly basis. All interest charged on tax payments shall be applied only on the principal, not on penalties or costs, and shall run from the date when the installment was due to the time it is paid.

c. Costs. In addition to the penalties and interest provided for this subsection, costs associated with collection of current or delinquent taxes, interest or penalties shall be charged.

E. Application of Payments. Any payment received shall be applied first to delinquent taxes in the order that the taxes became delinquent and in the following order for each delinquent tax:

1. Costs.

2. Penalty.

3. Interest.

4. Principal tax.

F. Property taxes, together with penalty and interest, are a lien upon the property assessed, and the lien is prior and paramount to all other liens or encumbrances against the property. (Ord. 23-01 § 1)

3.12.180 Deadlines for rate of levy determinations and tax statement mailing.

The city council shall annually determine the rate of levy before June 15th. By July 1st, the city shall mail tax statements setting out the levy, dates when taxes are payable and delinquent, and penalties and interest. (Ord. 23-01 § 1)

3.12.190 Delinquent tax roll—Foreclosure lists—Payment of taxes prior to sale—Giving of notices.

A. The finance director shall, within such time as the city council may direct, after such taxes have become delinquent and due, produce a roll of all real property then subject to foreclosure. Such roll shall be known as the foreclosure list of the city for the year in which the same is produced, the original of which shall be filed with the city clerk and remain open to inspection of the public. The foreclosure list shall be endorsed under the hand of the finance director and attested to by the city clerk and the corporate seal with a certificate stating that such roll is true and correct. The foreclosure list must be arranged in alphabetical order as to the last name and shall include:

1. The last known owner;

2. The property description as stated on the assessment roll;

3. Years and amounts of delinquency;

4. Penalty and interest due;

5. A statement that the list is available for public inspection at the clerk’s office;

6. The date that the foreclosure list will be presented to the superior court for judgment and order of sale or a statement that foreclosure list has been presented to the superior court for judgment and order of sale.

B. After completion of the foreclosure list, the finance director shall post the list at three public places for at least fourteen days prior to presenting the list to the superior court for judgment and order of sale.

C. On the day designated in the notice described in subsection A of this section, a certified copy of the foreclosure list, together with a petition for judgment, shall be presented to the superior court. The finance director shall:

1. 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.

2. 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.

3. Completion of the requirements 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.

D. During the time of the publication or posting of the foreclosure list and up to the time of sale, any person may make payment on any piece or tract set forth therein, together with the penalty and interest, and proportionate share of the costs of publication and foreclosure; and the finance director shall make proper notation of such payment on the foreclosure list.

E. A mortgagee or other holder of a recorded lien on real property may file with the finance director a written request that notice of any foreclosure list including such real property be given to such mortgagee or other lien holder. The request shall contain the name and address of the person filing it, the description of the property and the name of the owner or reputed owner thereof, and the date of expiration of the mortgage or lien. Notice need not be given after the expiration of the mortgage or lien, unless a further request therefor is filed. If the mortgagee or lien holder furnishes a duplicate form of request for the notice, the finance director shall certify thereon to the filing and return the duplicate to the person making the request. Whenever any property described in the request for notice is included in a foreclosure list, the finance director shall send by registered mail, written notice thereof to the mortgagee or other lien holder. At the time of mailing the notice, the finance director shall note that fact in the latest tax roll. The notation in the tax roll is prima facie evidence that the notice was mailed. Where the same mortgagee or lien holder has filed requests for notices on two or more properties included in a foreclosure list, one notice may be issued covering all such properties. (Ord. 23-01 § 1)

3.12.200 Enforcement of tax liens.

The provisions of AS 29.45.290 through 29.45.500 apply to the foreclosure and sale of real property for delinquent taxes, rights of redemption and all other matters affecting the city’s enforcement of its tax liens. (Ord. 23-01 § 1)

3.12.210 Foreclosure on personal property.

A. Owners of personal property assessed shall be personally liable for the amount of taxes assessed against their personal property and such tax, together with penalty and interest, may be collected after the same becomes due by a personal action brought in the name of the city against such owner in the courts of the state.

B. In addition to the remedy given by the preceding subsection, which shall not be construed as exclusive, the lien of personal property taxes may be enforced by distraint and sale of the personal property of the person assessed. The finance director shall first make demand of the person assessed for the amount of the tax, penalty and interest, and the sale shall be made at public auction after at least fifteen days’ notice given. The finance director shall issue a warrant directing the chief of police or any other officer of the city to forthwith seize, levy upon, distrain and sell such personal property of the person assessed as the tax may have been levied upon; and if the same is not sufficient to satisfy the tax, penalty and interest, and costs and expenses of such sale, such warrant may authorize the seizure, levy, distraint and sale of such other property of the person against whom the tax was assessed as may be sufficient to satisfy the tax, penalty, interest and cost of sale. The costs and expenses of such proceedings may be satisfied out of the proceeds of the property sold. The cost and expenses of such proceedings that may be satisfied from the proceeds of the property sold shall in no event exceed twenty percent of the proceeds received from such sale.

C. The lien of real property taxes on trailers and mobile homes which are about to be removed or have been removed from the city or which, subsequent to the accrual of the real property tax lien, become personal property within the meaning of this chapter may be foreclosed by distraint and sales as set forth in subsection B of this section. (Ord. 23-01 § 1)