Alaska Stat. § 29.45.110
Full and true value
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Sec. 29.45.110. Full and true value.
(a) The assessor shall assess property at its full and true value as of January 1 of the assessment year, except as provided in this section, AS 29.45.060, and 29.45.230. The full and true value is the estimated price that 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. The assessor shall determine the full and true value as provided in standards adopted by the department under (e) of this section or another set of standards provided by ordinance.
(b) Assessment of business inventories may be based on the average monthly method of assessment rather than the value existing on January 1. The method used to assess business inventories shall be prescribed by the governing body.
(c) In the case of cessation of business during the tax year, the municipality may provide for reassessment of business inventories using the average monthly method of assessment for the tax year rather than the value existing on January 1 of the tax year, and for reduction and refund of taxes. In enacting an ordinance authorized by this section, the municipality may prescribe procedures, restrictions, and conditions of assessing or reassessing business inventories and of remitting or refunding taxes.
(d) The provisions of this subsection apply to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42:
(1) when the assessor acts to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42, instead of assessing the property under (a) of this section, the assessor shall base assessment of the value of the property on the actual income derived from the property and may not adjust it based on the amount of any federal income tax credit given for the property; for property the full and true value of which is to be determined under this paragraph, to secure an assessment under this subsection, an owner of property that qualifies for the low-income housing credit shall apply to the assessor before May 15 of each year in which the assessment is desired; the property owner shall submit the application on forms prescribed by the assessor and shall include information that may reasonably be required to determine the entitlement of the applicant;
(2) the governing body of the municipality shall determine by ordinance whether the full and true value of all property within the municipality that first qualifies for a low-income housing credit under 26 U.S.C. 42 on and after January 1, 2001, shall be exempt from the requirement of assessment under (1) of this subsection; thereafter, for property that first qualifies for a low-income housing credit under 26 U.S.C. 42 on and after January 1, 2001, and that, by ordinance, is exempt from the requirement of mandatory assessment under (1) of this subsection, the governing body
(A) may determine, by parcel, whether the property shall be assessed under (a) of this section or 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, as authorized by (1) of this subsection; and
(B) may not, under (A) of this paragraph, change the manner of assessment of the parcel of property if debt relating to the property incurred in conjunction with the property's qualifying for the low-income housing tax credit remains outstanding.
(e) The department shall adopt standards for assessing the full and true value of property under (a) of this section that are not inconsistent with standards adopted by the International Association of Assessing Officers and update the standards when necessary.
(a) The assessor shall assess property at its full and true value as of January 1 of the assessment year, except as provided in this section, AS 29.45.060, and 29.45.230. The full and true value is the estimated price that 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. The assessor shall determine the full and true value as provided in standards adopted by the department under (e) of this section or another set of standards provided by ordinance.
(b) Assessment of business inventories may be based on the average monthly method of assessment rather than the value existing on January 1. The method used to assess business inventories shall be prescribed by the governing body.
(c) In the case of cessation of business during the tax year, the municipality may provide for reassessment of business inventories using the average monthly method of assessment for the tax year rather than the value existing on January 1 of the tax year, and for reduction and refund of taxes. In enacting an ordinance authorized by this section, the municipality may prescribe procedures, restrictions, and conditions of assessing or reassessing business inventories and of remitting or refunding taxes.
(d) The provisions of this subsection apply to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42:
(1) when the assessor acts to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42, instead of assessing the property under (a) of this section, the assessor shall base assessment of the value of the property on the actual income derived from the property and may not adjust it based on the amount of any federal income tax credit given for the property; for property the full and true value of which is to be determined under this paragraph, to secure an assessment under this subsection, an owner of property that qualifies for the low-income housing credit shall apply to the assessor before May 15 of each year in which the assessment is desired; the property owner shall submit the application on forms prescribed by the assessor and shall include information that may reasonably be required to determine the entitlement of the applicant;
(2) the governing body of the municipality shall determine by ordinance whether the full and true value of all property within the municipality that first qualifies for a low-income housing credit under 26 U.S.C. 42 on and after January 1, 2001, shall be exempt from the requirement of assessment under (1) of this subsection; thereafter, for property that first qualifies for a low-income housing credit under 26 U.S.C. 42 on and after January 1, 2001, and that, by ordinance, is exempt from the requirement of mandatory assessment under (1) of this subsection, the governing body
(A) may determine, by parcel, whether the property shall be assessed under (a) of this section or 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, as authorized by (1) of this subsection; and
(B) may not, under (A) of this paragraph, change the manner of assessment of the parcel of property if debt relating to the property incurred in conjunction with the property's qualifying for the low-income housing tax credit remains outstanding.
(e) The department shall adopt standards for assessing the full and true value of property under (a) of this section that are not inconsistent with standards adopted by the International Association of Assessing Officers and update the standards when necessary.
Notes of Decisions
Cited in 17
cases (2 in the last 5 years), 1986–2024 · leading case: Horan v. Kenai Peninsula Borough Board of Equalization
Horan v. Kenai Peninsula Borough Board of Equalization (2011)
“[ 26 ] In 2000 the Alaska legislature added a new subsection to AS 29.45.110. 27 The bill's initial draft mandated valuing all LIHTC properties based on rental restrictions without adjustment for tax credits.”
BP Pipelines (Alaska) Inc. v. State, Department of Revenue (2014)
“060 defines “full and true value” differently for each type of oil and gas property the statute covers.”
Stanek v. Kenai Peninsula Borough (2003)
“050, which permits municipalities to ex *270 empt $10,000 of residential property; and AS 29.45.110, which requires property to be assessed at its full and true value.”
Fairbanks North Star Borough Assessor's Office v. Golden Heart Utilities, Inc. (2000)
“AS 29.45.110(a). 15 . See Alaska Const. art.”
North Star Alaska Housing Corp. v. Fairbanks North Star Borough Board of Equalization (1989)
“029, and the state enabling statute, AS 29.45.110(a). North Star also argues that the rent savings method, the valuation method commonly used in condemnation proceedings, should be used for assessment purposes.”
Municipality of Anchorage v. Alaska Distributors Co. (1986)
“AS 29.45.110(a) and AS 29.45.180(a) also support our holding.”
Fairbanks Gold Mining, Inc. v. Fairbanks North Star Borough Assessor (2021)
“For previous years, the assessor depreciates the value of capital expenses by 5% annually over a 20-year period with a floor of 30% 1 See AS 29.45.110(a) (requiring assessment based on value as of January 1 of assessment year).”
CH Kelly Trust v. Municipality of Anchorage, Board of Equalization (1996)
“” AS 29.45.110(a), supra note 2. Because we find that the Municipality did consider topography and groundwater and adjusted for their effect on value, we affirm the superior court’s decision with respect to those claims of error.”
Varilek v. Burke (2011)
“As noted above, AS 29.45.110(2) defines "property value" for assessment purposes as the "price the property would bring in an open market and under the then prevailing market conditions.”
Black v. Municipality of Anchorage (2008)
“AS 29.45.110(a). 36 . ($458,600-$435,000) / $435,000 = 5.”
Kenai Peninsula Borough v. Arndt (1998)
“” The KPB assessor must “assess property at its full and true value as of January 1 of the assessment year,” AS 29.45.110(a), and is authorized to “require each person having ownership or control of or an interest in property to submit a return .”
Kelley v. Municipality Anchorage (2019)
“He argues that cash sales are "the accepted definition of the concept of market value," and he cites AS 29.45.110(a)'s definition of "full and true value" for purposes of municipal taxation: "the estimated price that the property would bring in an open market and under the then…”
— Alaska Stat. § 29.45.110(2) — 1 case
Varilek v. Burke (2011)
“As noted above, AS 29.45.110(2) defines "property value" for assessment purposes as the "price the property would bring in an open market and under the then prevailing market conditions.”
— Alaska Stat. § 29.45.110(a) — 16 cases
BP Pipelines (Alaska) Inc. v. State, Department of Revenue (2014)
“060 defines “full and true value” differently for each type of oil and gas property the statute covers.”
Fairbanks North Star Borough Assessor's Office v. Golden Heart Utilities, Inc. (2000)
“AS 29.45.110(a). 15 . See Alaska Const. art.”
Horan v. Kenai Peninsula Borough Board of Equalization (2011)
“[ 26 ] In 2000 the Alaska legislature added a new subsection to AS 29.45.110. 27 The bill's initial draft mandated valuing all LIHTC properties based on rental restrictions without adjustment for tax credits.”
North Star Alaska Housing Corp. v. Fairbanks North Star Borough Board of Equalization (1989)
“029, and the state enabling statute, AS 29.45.110(a). North Star also argues that the rent savings method, the valuation method commonly used in condemnation proceedings, should be used for assessment purposes.”
Municipality of Anchorage v. Alaska Distributors Co. (1986)
“AS 29.45.110(a) and AS 29.45.180(a) also support our holding.”
— Alaska Stat. § 29.45.110(d) — 1 case
Horan v. Kenai Peninsula Borough Board of Equalization (2011)
“[ 26 ] In 2000 the Alaska legislature added a new subsection to AS 29.45.110. 27 The bill's initial draft mandated valuing all LIHTC properties based on rental restrictions without adjustment for tax credits.”
— Alaska Stat. § 29.45.110(d)(1) — 1 case
Horan v. Kenai Peninsula Borough Board of Equalization (2011)
“[ 26 ] In 2000 the Alaska legislature added a new subsection to AS 29.45.110. 27 The bill's initial draft mandated valuing all LIHTC properties based on rental restrictions without adjustment for tax credits.”
— Alaska Stat. § 29.45.110(d)(2) — 1 case
Horan v. Kenai Peninsula Borough Board of Equalization (2011)
“[ 26 ] In 2000 the Alaska legislature added a new subsection to AS 29.45.110. 27 The bill's initial draft mandated valuing all LIHTC properties based on rental restrictions without adjustment for tax credits.”
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