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Title 3 . Commerce, Community, and Economic Development
Chapter 135 . Small Municipality Energy Assistance Program
Section 40. Deadlines and calculations

3 AAC 135.040. Deadlines and calculations

(a) Exemption applications filed after January 15 of the assessment year, or after a date provided by ordinance as specified in AS 29.45.030 (f), must be accompanied by an affidavit stating the reason for the late filing.

(b) To qualify for a hardship exemption beyond the first $150,000 of assessed value of real property under AS 29.45.030 (e), the applicant must apply by completing Form 21-400c and submitting the form, including necessary attachments, to the municipal assessor before July 1, or before a date provided by ordinance as specified in AS 29.45.030 (f), of the exemption year.

(c) An eligible applicant may qualify for a hardship exemption beyond the first $150,000 of assessed value of real property if the amount of the applicant's tax bill is greater than two percent of the applicant's gross household income. An exemption will be granted only for that portion of the applicant's taxes in excess of two percent of the gross household income. "Gross household income" means total annual compensation, earned and unearned, from all sources, of all members of the household.

(d) In cases of extreme hardship, an exemption up to 100 percent of the applicant's assessed value of real property may be granted by a two-thirds vote of the governing body.

(e) Hardship exists when the amount of taxes owed is in excess of two percent of an applicant's gross household income.

(f) The following are examples of hardship exemption calculation:

(1) Example A

    

    

Household Income: $30,000 Assessed Value: 200,000 Mill Rate: 10.0 Taxes Calculated: $200,000 x 10.0 mills = $2,000 $150,000 Cap: $150,000 x 10.0 mills = $1,500 Tax Liability: $ 500 Ability to Pay: $ 30,000 x 2% = 600 = No hardship exemption allowed

(2) Example B

    

    

Household Income: $10,000 Assessed Value: 200,000 Mill Rate: 10.0 Taxes Calculated: $200,000 x 10.0 mills = $2,000 $150,000 Cap: $150,000 x 10.0 mills = $1,500 Tax Liability: $ 500 Ability to Pay: $ 10,000 x 2% = $200 Tax Liability: $500 Ability to Pay: (200) Hardship Exemption: $300

History: Eff. 1/28/73, Register 45; am 3/31/76, Register 57; am 9/21/88, Register 107

Authority: AS 29.45.030 (f)


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Last modified 7/05/2006