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FAQs about 2026 Property Assessments​

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​​What is the aim of the green card?

Accuracy.  State law requires the municipality to assess the “full and true value” of all real property.  The green cards show each property owner the results of the municipality’s mass-appraisal system--- ahead of the assessment roll being set---both for transparency, and so property owners can work with property appraisal to make any justified corrections.

Are property values unusually up this year? 

Overall, no.  The average change was +4.3%.  The majority of properties (58%) changed by less than 5%.  Approximately one-third of properties (32%) saw valuation decreases.   But some properties did see large adjustments—10% of properties were adjusted by more than 10%.

Are large adjustments unusual? 

The adjustments we’re seeing this year aren’t unprecedented.   The chart below compares this year’s changes (right) to last year’s changes (left).   The bell curve of changes this year is a little wider – but the percentage of properties (~9% to 10%) that received higher upward valuation changes (>=10%) is very similar.  

Is this a political process?

No—property assessment is carried out by career professionals who apply generally recognized and legally required assessment practices. 

Is there an incentive to inflate assessments to increase property taxes? 

No, and for at least three reasons.   

First---and primarily---because property assessments are conducted by career professionals whose only aim is to assess “full and true value,” without regard to any outside considerations.  

But even if that were not the case, second, increased property values, on their own, would not lead to increased taxes overall because the municipality has a “tax cap.”   Because [Property taxes] = [Assessed Value] * [Mill Rate], and the tax cap fixes the total amount of property taxes, increased property valuation, on its own, acts only to reduce mill rates, not increase taxes.

Moreover, as a result of the state school-funding formula, the state’s contribution to local schools actually decreases as property values increase—meaning that the amount of money available to fund general government can actually decrease as property values go up. 

Why would a property assessment change by 30% or 40%?

Very large assessment changes are most typically associated with new construction (involving a new or significantly different structure being placed on a parcel of land) or other special circumstances.

Why did some properties see larger changes? 

Each property is different.  As noted in the prior response, some properties were previously under-construction or had significant on-the-ground changes; other properties may have been undervalued in previous assessment cycles.  

Did the assessment methodology change? 

Generally, no—the overall assessment framework used by property appraisal didn’t change.  This year, like all previous years, the property appraisal used a “market-adjusted cost approach to value,” typical of an assessing jurisdiction.  Among other things, the department looked at cost data; comparative sales; and quality of construction.

But property appraisal did refine some inputs to the model.   

1. The Cost Model uses as a significant input a “base value,” which was trued up using the best-available cost data. [Long ago, the Municipality adopted a base value of $93,950 which had been several times adjusted, until by 2025 the adjustment factor was 2.4133—suggesting we were overdue for a true-up.  For 2026, the department used new data from Marshall and Swift (the leading vendor, https://www.cotality.com/products/marshall-swift) to arrive at an updated cost base of $221,832, which was then adjusted to market data (by applying a Cost Factor of 1.18).]  
   
   
2. For comparative sales, the department adopted more defensible “market areas,” after consulting with a certified assessment evaluator who advised on best practices and standards from the International Association of Assessing Officers (IAAO).  The update replaced what, over time, had become an “obsolete neighborhood structure, which consisted of 430 neighborhoods in 27 groups” that was becoming increasingly difficult to administer because “with a decreasing number of reported annual sales, most neighborhoods had insufficient data to develop supportable market adjustments.” 
   
   The previous approach “stratified” neighborhoods into fragments, in which adjacent properties were treated quite differently, and was outside of national norms.  By way of example, compare the treatment of Turnagain in the old system (left) to the revised structure (right):
   
    

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3. ​Last, to attend to differing quality of individual houses, Property Appraisal applies a “grade factor.” Prior to this year, the municipality used a “[multi]-level grade system [that] was over-stratified and applied inconsistently.” It was refined into a system of three grades, based on “[Marshall and Swift] standards and market analysis of [assessed value to market value] AV Ratios.”
   

In practice, each of the updated inputs was designed by property appraisal to make the assessments more accurate and defensible, and to better incorporate data from neighboring properties.

Did these changes have to happen?​

Property appraisal is always working to improve its processes. This year’s changes better align with International Association of Assessing Officers standards, and were made with awareness of recent changes to state law (via SB 179, signed into law in August 2024) that require municipalities to “determine . . . full and true value as provided in standards [to be adopted by the State Assessor or local ordinance] . . . that are not inconsistent with standards adopted by the International Association of Assessing Officers.” AS 29.45.110.

Could the refined inputs to property appraisal’s assessment framework have resulted in a change to an individual property’s assessment?

Yes—but the valuation of all properties reflects property appraisal’s best understanding of the property’s “full and true value.”​

Assessments are developed in accordance with International Association of Assessing Officers standards and are tested to ensure accuracy and equity. However, the best way for homeowners to be confident their assessment reflects their specific property is to review their property record online and contact Property Appraisal with any questions or concerns.

Is there a report that shows property tax increases/decreases by area?

Yes. Slide 13 of property appraisal’s Annual Valuation Report summarizes average assessment changes by Assembly District. For a more granular review, the public can view property-level assessment increases and decreases through the Open Data Portal.

Is property appraisal looking at property that changed by a significant amount?

Yes. The mayor has instructed property appraisal to proactively review parcels whose valuation changed by larger amounts. That ongoing review, if it exposes errors, will result in revised assessments.

Is property appraisal identifying corrections that need to be made?

Yes. Property appraisal receives inquiries about assessments every year, and every year makes justified corrections. That process is occurring now, and will continue over the coming weeks.

If a person believes their assessment is wrong, what should they do?

Contact property appraisal at (907) 343-6500. Property appraisal will work with property owners and review individual cases. This “informal review” often eliminates any need for property owners to file a formal appeal. Property appraisal, too, wants assessments to be accurate.

Formal appeals, if necessary, can be filed through Feb. 11.

The informal and formal appeal processes are an important part of ensuring accuracy and equity---and Property Appraisal relies on them just as much as property owners do. They are an opportunity for Property Appraisal to receive constructive feedback and additional data, and to improve the overall quality of its assessments.

Do residents need to pay a fee to ask property appraisal to review an assessment?

No, there is no fee associated with contacting property appraisal to seek an initial review. A fee is only associated with filing a formal appeal to the Board of Equalization. For more information on the formal appeals process, see: https://www.muni.org/Departments/finance/property_appraisal/HowDoI/Pages/Appeals.aspx

Where I can I get more information?

More information is available at property appraisal’s website (https://www.muni.org/Departments/finance/property_appraisal/pages/default.aspx), including: FAQ's About My Property​