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Frequently Asked QuestionsThe information contained in this publication is current as of the date of publication and is intended as general information only. It does not alter or supersede any ordinances, statutes, or regulations. The Property Appraisal Division is located in City Hall at 632 W. 6th Ave. Anchorage, Room 330. Office hours are from 8:00 a.m. to 5:00 p.m. Monday through Friday. You may contact us by phone at (907) 343-6770. What is “Real Property”? Real Property (real estate) is land and improvements to land, such as buildings, structures, fixtures of any kind thereon. What is “Personal Property”? Personal Property is any property other than real property. Personal property includes mobile homes located in mobile home parks. Business personal property is composed of tangible assets, other than real property, held for use in a business. Taxable business personal property includes, but is not limited to, inventory, supplies, furniture, fixtures, equipment, leasehold improvements, and rental furnishings. What is “Assessed Value”? Assessed Value is the estimated price that a typical buyer would pay for a property if sold on the open market as of January 1 of the assessment year. This means that your property should be assessed at 100% of market value. It is important to recognize that Buyer/Seller interaction is not precise, what you would pay is not necessarily what I would pay for the same property. Market value falls within a range and the assessed value is an estimate of what a typical buyer would pay, not necessarily the exact price paid. How is property value estimated? There are three approaches to estimating market value; sales, cost and income approaches. In estimating real property values for all types of properties the assessor keeps track of what properties are selling for, what it would cost today to replace them, the costs to operate and repair them, what rents they may earn and many other factors affecting value. Utilizing this data, current market value may be estimated in three different ways. The assessor may use one or more of these approaches to estimate what your property will sell for on the open market. The approach employed depends on the type of property and quality and quantity of data available for analysis. The sales approach compares your property to others that have sold. Sales prices must be carefully analyzed to get a true picture. One property may have sold high because the seller included substantial personal property or special financing. Another may have sold low because the seller was in a hurry or needed cash right away. By comparing numerous selling prices of properties similar to yours, adjusting for differences between the sold property and your property (e.g., two versus three bathrooms), the market value for your property is estimated. A second way to estimate market value is based on how much it would cost to construct a new replacement building, adjust for age & condition, and finally adding the land value. The third way is to evaluate how much income the property (apartment, store, factory etc.) would produce if it were rented. The operating expenses, insurance, maintenance, and return on investment must be considered. Why do assessed values change from year to year? If you were to add a garage to your home the market value would increase, however, physical changes are not the only reason for value changes. Changes in supply and demand of properties, employment patterns, interest rates and zoning and other market factors all may affect value. Another factor that may affect assessed value is the abundance or lack of information available to the assessor to base the estimate on in a given year. The property may have been valued below 100% of market value last year. If newly discovered information indicates that the previous value was inaccurate the new value will be different. The basic question to ask concerning your value is; “Could I sell the property at this price?” How do I know what my property is worth? Most people get a feel for the market in their area from talking to friends, neighbors and real estate professionals. Additionally, listings, newspaper ads and articles and recent sales provide useful information about market conditions. Sales of residential one to four family properties are also available at the assessor’s office and Municipal appraisers are available to answer questions year round. You may also look at the Property Appraisal website to find information on properties such as assessed values, comparable sales and property descriptions. When will I receive my assessment notice? Assessment notices for Real property are typically mailed in January or early February. They are on a green postcard sized form which includes your Parcel Identification Number, Legal description and valuation amount. On the card is important information regarding your rights to appeal and schedule for tax payments. If my property value has increased, will my property taxes go up? An increase in your property value does not automatically mean that your property tax will change by the same percentage. Anchorage has a tax cap in place that limits the increase in taxes using a formula based on population and inflation growth, new construction and voter approved ballot issues. (See Municipal Code Title 12, Chapter 12.25) How are taxes determined? The Assessors Office estimates property value and does not set tax rates or collect taxes. Assessed values determine the distribution of property tax among taxpayers. The budget determines taxes, and is established by the financial needs and budgets approved by Municipal government, the School District and voter approved debt (Bonds). The tax rate is expressed in mills, that is, one-thousandth of one dollar. The budget, less anticipated revenues from sources other than the property tax, is divided by the Total Assessed Value in Anchorage to determine the mill rate. (Approved Budget - other revenue / total tax base = mill rate) Mill rates are set in May of each year by the Municipal Assembly. Property taxes are determined by multiplying your property’s assessed value by the mill rate. Taxes = (mill rate / 1000) x value. Are there tax exemptions available? Yes, there are several types of property tax exemptions available. Property owned and occupied as the primary residence and permanent place of abode by a (Senior) resident 65 years of age or older, a Disabled Veteran, or a resident at least 60 years old who is the widow or widower of a person who qualified as a Senior or Disabled Veteran may apply for an exemption of up to $150,000 of property value. (Senior or Disabled Veteran Exemption Application) Owner occupied residential property may be partially exempt (10% of assessed value, up to $20,000 maximum). (Residential Exemption Application). Tax relief is available for owner occupied residential property at least 50% destroyed by fire. (Application must be made within 60 days of the fire.) There are also exemptions available for property used exclusively for nonprofit religious, charitable, cemetery, hospital, educational or community purposes. (Nonprofit Information) Additionally, up to 2% of building value may be exempt if the structure contains an approved fire protection system. Exemption applications, procedures and guidelines are available in the Property Appraisal Office at: City Hall, 632 w. 6th Avenue Suite 330, or by calling (907) 343-6770. How do I change the mailing address on my accounts? Address changes are processed by the Property Appraisal Office at City Hall Suite 330. You may also call (907) 343-6770 or fax a request to (907) 343-6599. Where do I get information about my taxes? The Treasury Division is responsible for billing, collecting and auditing municipal tax revenues. Questions concerning payment of taxes, minimum payments due, or tax refunds should be directed to the Treasury Division. The Treasury phone number is (907) 343-6650. Tax revenues provide primary funding for city services such as: public safety, education, roads and transportation, health & human services, and cultural & recreational services. I think my value may be incorrect, should I contact the Assessors office? Yes, you should contact the Property Appraisal Division to review your valuation any time you have questions regarding your property value. During the first 30 days after assessment notices are mailed we are able to review and adjust values. Property owners can often settle disagreements at this level without the need or expense of filing a formal appeal. It is always wise to review your property information at the assessor’s office, on the Property Appraisal website, or by phone to make sure it’s accurate. If you have questions about your valuation notice it is best to contact us as soon as possible as we are typically very busy during the first few weeks after notices are mailed. You will find a contact phone number to call on the face of your assessment notice. Who may appeal the assessed value? A person whose name appears on the assessment roll as the owner of record or the agent 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. What is the Board of Equalization? The Board of Equalization is comprised of private citizens who have been appointed by the Anchorage Assembly to hear valuation appeals brought forward by property owners. The board is not associated with the Municipal Assessors Office. May I appeal my property taxes? No, appeals may only be made against the value of the property. The percent or amount of change from last year, amount of tax, mill rate, and other matters unrelated to current value cannot be considered. What is the deadline for filing an appeal? Appeals must be filed within 30 days from the date the assessment notice was mailed. Appeals must be received by the Property Appraisal Division, or postmarked, by the “Appeal must be filed by” date shown on the face of the assessment notice. We encourage you to visit or contact an appraiser at Property Appraisal to discuss the valuation prior to filing an appeal. How do I appeal the assessed value of my property? To file an appeal of the Assessor’s valuation of your property, you must complete a written appeal form, specifying the grounds for the appeal and pay a filing deposit. You must also provide evidence supporting your appeal within 45 days from the date the assessment notice was mailed (30 days to file an appeal plus 15 days to provide supporting evidence). The assessor may agree to extend this time limit under certain conditions. If the appeal is resolved prior to the hearing or you have provided the data and access required by the assessor and you appear at the hearing, the filing deposit will be refunded. It is always a good idea to review the information available at the Assessors Office or on the Web before filing an appeal. During the first 30 days after assessment notices are mailed we are able to review and adjust values without the need or expense of filing a formal appeal. Information available may include your property description, sales of property similar to yours and values of property in your neighborhood. Appeal filing fee schedule:
Appeal Forms may be obtained by contacting the Property Appraisal Division or on the Municipality of Anchorage web site, Real Property Appeal Form. What information must I provide with my appeal?
By law, THE APPELLANT BEARS THE BURDEN OF PROOF. The only grounds for adjustment of an assessment are proof of unequal, excessive, improper, or under valuation based on facts that are stated in a valid written appeal or proven at the appeal hearing. If the valuation is found to be low, the Board of Equalization may raise the assessment. You must present clear and convincing evidence to support your appeal. Evidence must be provided within 15 days of the “Appeal must be filed by” date shown on the face of the assessment notice. The assessor may agree to extend the time limit under certain circumstances. Appeals without supporting information will be dismissed by the board. Why is there a deadline for submitting evidence? The Assessor is required to be substantially finished with all appeals by June 1. In order to timely review each case, make appropriate adjustments to value or have the appeal heard by the board of equalization, evidence supporting the appeal must be submitted in a timely manner. What kinds of evidence should I provide for my appeal? The assessed value is the assessor’s estimate of the price the typical buyer would pay for your property as of January 1 of the appeal year. Buyers and sellers create market value through their activity in the marketplace. In a residential appeal, the best evidence of market value is sale price, the sale price of the subject property or of similar properties. Commercial properties may require rent rolls, leases and income and expense information. You may obtain comparable sales information from local Realtors, appraisers or at the Assessors office. If possible, select sales of properties that have sold recently, are most similar to your property, and are in your neighborhood or area. For each comparable you use, be sure to include the parcel number, address, date of sale and sale price. Also consider comparable characteristics of the property. Typical characteristics to consider include: LAND CHARACTERISTICS
BUILDING CHARACTERISTICS
OTHER SUPPORTING EVIDENCE
What happens after I file my appeal? Your appeal will be assigned to an appraiser for review. You must provide the appraiser with your evidence within 45 days of the date notices were mailed. The appraiser may require further information and/or an inspection of your property. If the appraiser finds reason to revise the value you will receive an ‘Appeal Withdrawal Form’ noting the new value. If you do not agree with the outcome of the review by signing and returning the Withdrawal Form, your appeal will be sent to the Board of Equalization for hearing. When will I have a hearing? You may check for the scheduled hearing date on the web on our Appeals Calendar. The Property Appraisal Division will also notify you of the location, date, and time of your hearing approximately two weeks in advance of the hearing date. If you fail to appear, the hearing may proceed in your absence unless the Board grants a new hearing date. What can I expect at the hearing? The hearing is an informal review designed to allow property owners to present their case, however counsel may represent you if you desire. All testimony before the Board shall be under oath. You and the Assessor’s representative will have the opportunity to give oral testimony and present documentary evidence as to the value of the appealed property. NOTE: Documents you wish to be considered as evidence must have been filed with the assessor within 45 days of the date assessment notices (green cards) were mailed, unless the assessor agrees to an extension. The Board will then close the hearing and make a decision on the value. The Board may raise, lower or uphold the value. A decision by the board regarding your appeal is only applicable for the tax year in which an appeal is filed. The assessor is not bound by the board’s decision in a subsequent assessment period. It is therefore important for you to review your assessment notice each year. If you disagree with your assessment you should contact the assessor’s office or file an appeal for that year. What if I am not satisfied with the Board of Equalization decision? The appellant or the assessor may appeal a final determination of the Board of Equalization to the Superior Court within 30 days of the Boards decision. Should I wait until after my appeal hearing to pay my taxes? No, pay your taxes when they are due. Taxes must be paid on or before the due date even if an appeal is pending. Taxes paid after the due date are delinquent and 10% penalty, plus interest and costs are added to the delinquent tax. When a Board of Equalization appeal is finalized, and if there is a decrease to the assessed value, a refund will be issued for the excess taxes paid, plus interest. Refunds usually take several weeks to process. An exception to the above requirements for payment of taxes applies only to:
If your appealed property meets the above exceptions and the appeal has not been resolved on or before the due date for the first or second tax payment installment, a minimum payment shall be made by the due date for each installment. The minimum payment is based on the assessed value for the previous year and the mill rate for the current year. Contact the Treasury Division at (907) 343-6650. If your appeal is resolved and you owe additional tax, the balance, including interest shall be paid with the second half installment, or, if not resolved by the second half due date, within ten days of notice of resolution of the appeal. Failure to make a timely payment for any balance due shall result in application of both penalty and interest on the balance. Questions concerning payment of taxes, minimum payments due, or refunds must be directed to Treasury Division Tax Section (907) 343-6650 OTHER ASSISTANCE MAILING ADDRESSES & PHONE NUMBERS Treasury Division Questions or Feedback E-mail: Property Appraisal |
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