Enough Is Enough: End the Tax Creep
In Alaska, property taxes are quietly becoming a constitutional crisis. Every year, homeowners are taxed on fictitious values—on paper profits they’ve never realized and may never receive. These are unrealized gains, yet they are taxed as though money changed hands.
This system doesn’t just stretch the limits of fairness—it violates the spirit of the Constitution.
“...nor shall private property be taken for public use, without just compensation.”
— Fifth Amendment, U.S. Constitution
Known as the Takings Clause, this provision was meant to protect you from unjust seizure of your land. Today, it's being circumvented through annual assessments that slowly extract wealth from your property, making it harder and harder for you to remain in your own home.
It’s not eminent domain. It’s not fast or obvious. It’s worse. It’s a slow bleed that robs citizens of their rights through tax creep, bureaucracy, and fiction-based values.
The Fair Tax Act: A Constitutionally Grounded Reform
The Fair Tax Act is a comprehensive amendment to Title 29 of the Alaska Statutes, drafted to restore fairness, predictability, and constitutional integrity to Alaska’s property tax system.
This is not a temporary fix or a local option. It is a statewide reset of the way property taxation works in Alaska. Upon passage by the State Legislature, the Fair Tax Act takes effect immediately.
Key Provisions of the Fair Tax Act
1. Roll Back to a Base-Year Assessment (2019)
Property assessments will be rolled back to their fair market value as recorded in the 2019 tax year. No more speculative tax hikes based on inflated paper valuations.
2. Tax Based on Real Purchase Price
If a property is sold or transferred, the recorded purchase price becomes the new taxable value. This is clear, factual, and rooted in actual economic activity—not guesswork.
3. Annual Cap on Tax Rate Increases
Municipalities may not raise property tax rates by more than 0.01 mills per year without a supermajority vote by their governing body. This stops runaway tax increases before they start.
4. Full Exemption for Seniors and the Disabled
Any Alaskan 65 years or older—or permanently disabled—will be fully exempt from property taxes on their primary residence. Surviving spouses age 60 or older also qualify.
5. Prohibition of Taxation on Unrealized Gains
Property taxes cannot be based on speculative or unrealized market gains. Only real sales or transfers may affect assessments.
6. Right to Petition for Lower Assessment
If your property has declined in value below the base-year level, you may petition for a reassessment. If granted, your tax burden will decrease accordingly.
Why This Matters
The Fair Tax Act restores integrity to the idea of homeownership. It ensures you are not taxed on hypothetical profits. It stops local governments from quietly pushing long-time residents out through unjust increases. And it dramatically reduces the cost of assessing property statewide.
Most importantly, it reinforces the basic truth that your home is your property—not the government's piggy bank.
Effective Date
This law will take effect immediately upon certification of passage by the Alaska State Legislature, in accordance with the Alaska Constitution and state election laws.
Call to Action
If you believe your property taxes should be rooted in fairness, fact, and constitutional principles, then the Fair Tax Act deserves your full support.
This is not a partisan issue. It’s a matter of property rights, economic justice, and common sense.
Click HERE: Contact your representatives. Speak out. Advocate for change.
Exhibit A – Full Text of the Fair Tax Act
THE FAIR TAX ACT – ALASKA PROPERTY TAX REFORM LAW
An Act Amending Title 29 of the Alaska Statutes to Establish a Fair, Equitable, and Predictable Property Taxation System Based on Realized Gains and Base-Year Assessment
Section 1. Purpose and Intent
This Act shall be known as the Fair Tax Act. The purpose of this Act is to reform the property tax system in Alaska to:
Eliminate taxation on unrealized gains
Establish a base-year value assessment method
Cap annual property tax increases
Protect long-term property owners, including seniors and the disabled
Ensure fairness, predictability, and alignment with a property owner’s ability to pay
Section 2. Amendment to Title 29 – Property Tax Assessment Reform
Add a new section to Title 29, Chapter 45:
Sec. 29.45.___. Base-Year Value System
(a) Property tax assessments for all real property subject to municipal taxation in the State of Alaska, excluding oil and gas properties, shall be based on the fair market value assessed in the 2019 tax year (the "Base Year Value").
(b) Upon purchase or transfer of property, the property shall be assessed based on the purchase price, which establishes a new base year for the new owner.
(c) Market-driven value increases shall not be used to reassess properties unless triggered by a qualifying event outlined in Sec. 29.45.___.
Sec. 29.45.___. Reassessment Upon Ownership Transfer
(a) A reassessment shall occur upon the sale or transfer of real property and shall be based on the recorded purchase price.
(b) The following transfers shall not trigger a reassessment:
(1) Transfers between spouses or registered domestic partners;
(2) Transfers between parents and children or grandparents and grandchildren, provided the transferee maintains the property as a primary residence;
(3) Transfers via inheritance or estate settlement, provided the inheritor maintains the property as a primary residence.
Sec. 29.45.___. Property Tax Rate Limitation
(a) Annual property tax mill rate increases shall be limited to 0.01 mills per year.
(b) Any municipal proposal to increase rates beyond this threshold must be approved by a supermajority vote of the respective municipal governing body.
Sec. 29.45.___. Senior Citizen and Disability Exemption
(a) An individual who is age 65 or older or permanently disabled, and who meets Alaska residency requirements, shall be exempt from property tax on their primary residence.
(b) A surviving spouse age 60 or older shall qualify for the same exemption if the deceased spouse qualified for the exemption at the time of death and the surviving spouse meets Alaska residency requirements.
Sec. 29.45.___. Prohibition of Taxation on Unrealized Gains
(a) Property tax assessments shall not include increases in value due to speculative or unrealized market gains.
(b) Only realized gains through verified sale or transfer may be considered in reassessment.
Sec. 29.45.___. Petition for Reduction Based on Market Value Decline
(a) A property owner may petition the local taxing authority for a reassessment if the current market value is demonstrably lower than the assessed base-year value.
(b) If approved, the assessed value shall be adjusted downward accordingly.
Sec. 29.45.___. Severability
If any provision of this Act is found to be unconstitutional or invalid by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.
Section 3. Applicability
This Act shall apply to all municipalities in the State of Alaska that levy property taxes. Municipalities may not override or alter the protections established in this Act by local ordinance.
Section 4. Effective Date
This Act takes effect immediately upon certification of passage by the Alaska State Legislature, in accordance with the Alaska Constitution and state election laws.