Municipality of Anchorage, AK Chapter 12.10 PERSONAL PROPERTY TAXATION [1]

[1] Editor's note — Pursuant to ch. 256 SLA 1976 and AR No. 121-76, the municipality no longer imposes a personal property tax on motor vehicles.

§ 12.10.010 Property subject to taxation.

A. Except as otherwise provided in this chapter, the following personal property which has a tax situs within the municipality is subject to taxation:

1. Vehicles. Except for vehicles subject to the tax levy on motor vehicle registration in chapter 12.07, all vehicles propelled by other than human muscular power shall be taxable as personal property, including but not limited to automobiles, motorcycles, aircraft, boats and snowmobiles.

2. Mobile and manufactured homes. Mobile and manufactured homes located within the municipality that are permanently affixed to the ground, or are wider than 14 feet and are located outside of a manufactured home community shall be classified as real property. All other mobile and manufactured homes shall be classified as personal property.

3. Taxable business personal property.

a. Business personal property is taxable to the extent that a taxpayer's total assessed value for all business personal property within the Municipality of Anchorage exceeds $100,000.00.

b. Business personal property includes but is not limited to:

i. All personal property including, but not limited to, furniture, furnishings, fixtures, machinery and equipment used by a business or in a business capacity; and

ii. Inventory in the hands of a retail or wholesale merchant who holds it for sale, lease or rental shall be taxable as personal property; and

iii. Inventory held by a manufacturer or processor in the form of raw materials shall be taxable as personal property.

B. All other personal property not exempt by law is subject to taxation as personal property.

(AO 220-76, § 1, 11-16-2006; AO No. 81-218(S); AO No. 94-74(S-1), § 1, 1-1-1995; AO No. 94-211, § 2, 1-1-1995; AO No. 2004-140, § 1, 10-26-2004; AO No. 2010-81(S-1), § 15, 12-7-2010, eff. 1-1-2011; AO No. 2011-30, § 2, 3-8-2011, eff. 1-1-2012; AO No. 2020-96, § 3, 9-1-2021; AO No. 2025-56(S), § 1, 5-20-2025, eff. 1-1-2026)

§ 12.10.020 Exemptions.

A. Individual personal property utilized solely and exclusively for personal, non-business uses or purposes is exempt from taxation under this chapter.

B. The first $100,000.00 of assessed valuation of taxable personal property owned by each taxpayer shall be exempt from municipal property taxation.

1. For a taxpayer with more than one personal property tax account, the $100,000.00 exemption shall be distributed pro rata among all of the taxpayer's accounts, based on the proportion of the assessed value in each account to the total assessed value of that taxpayer's personal property.

(GAAB 10.05.030; AO No. 81-218(S); AO No. 85-182, 1-1-1986; AO No. 86-211(S-1); AO No. 94-74(S-1), § 2, 1-1-1995; AO No. 94-97(S), § 2, 1-1-1995; AO No. 94-211, § 3, 1-1-1995; AO No. 94-219, § 1, 1-1-1995; AO No. 97-128, § 1, 10-21-1997; AO No. 2004-140, § 2, 10-26-2004; AO No. 2020-96, § 3, 9-1-2021; AO No. 2025-56(S), § 1, 5-20-2025, eff. 1-1-2026)

§ 12.10.030 Tax situs of personal property.

A. Definition. All personal property which has a tax situs within the municipality on January 1 of the tax year is subject to taxation. Tax situs means the principal place where an item of personal property is located, having due regard to the residence and domicile of its owner, the place where it is registered or licensed, whether it is taxed by other municipalities, and any other factors which may indicate the principal location of the property.

B. Conclusive presumptions.

1. Tax situs shall be conclusively presumed to be within the municipality when the property, although not within the municipality on January 1 of the assessment year, either:

a. Has been or is usually, normally or regularly kept or used within the municipality;

b. Has been or is kept or used within the municipality for any 90 days or more in the 12 months preceding the January 1 assessment; or

c. Has been or is kept or used within the municipality for any length of time preceding January 1 of the assessment year if such presence or use is intended to be permanent. The term "permanent," as used in this subsection, means for a period of 90 days or more.

2. Tax situs shall also be presumed conclusively to be within the municipality where the ownership, maintenance or use of such property requires a license or permit, and a license or permit has been issued by the state or the municipality, and:

a. The property is so licensed or permit so issued and either the actual residence address or the mailing address of the licensee or permittee, or of the permissive user thereunder, is within the municipality;

b. The property is so licensed or the permit so issued and the domicile of the licensee or permittee, or the permissive user thereunder, is in the municipality; this subsection is to apply expressly to, but is not limited to, situations wherein the subject property is in the custody of persons in educational institutions outside of the municipality; or

c. The property is so licensed or the permit is issued and the property is permanently outside the municipality when such licensing frees the owner or user or custodian of liability for similar taxes in any other country, state or political subdivision thereof.

(GAAB 10.05.020)

§ 12.10.040 Filing of returns.

A. Every person who owns or controls taxable personal property the tax situs of which is the municipality as of January 1 of each year, must file a personal property tax return indicating ownership or control of the personal property.

1. Personal property filing due date. Personal property returns shall be filed or postmarked on or before April 30 of each year by each person owning or controlling personal property subject to taxation.

2. Responsibility of corporate officers and directors. It shall be the responsibility of every director and principal officer of a corporation owning or controlling business personal property or inventory to ensure that timely and proper filings are made on behalf of corporations for each tax year. Failure on the part of any director or officer of a corporation to file a timely and proper tax return is punishable under section 12.05.080.

3. Independent investigation by assessor. The assessor is not bound to accept a return as correct. The assessor may make an independent investigation of property returned or of taxable property upon which no return has been filed. In either case, the assessor may make their own valuation of the taxable property.

a. For investigation, the assessor may enter any premises during reasonable hours and may examine property on the premises. The assessor may examine all property records for the time period involved. A person shall, upon request, furnish to the assessor every facility and assistance for the purpose of the investigation. If refused entry or examination, the assessor may seek a court order to compel entry and production of records for assessment purposes.

b. The assessor may examine a person under oath. Upon request, the person shall present himself or herself for examination by the assessor at a reasonable time and place selected by the assessor.

4. Inspection of returns; confidentiality. Personal property tax returns shall be confidential and shall be inspected only by officers authorized to administer the tax laws and law enforcement officers of the United States, the state and municipalities, or in response to a valid subpoena. Any employee violating this restriction by communicating information obtained from property returns not required to be shown on the assessment roll, or by allowing any person not legally entitled to access to such returns to have access to them, may immediately be discharged from municipal employment, and shall be subject to a penalty under this title.

5. Late filing. A grace period of seven calendar days shall elapse following the filing due date set forth in subsection A.1 of this section before a personal property tax return is considered late. A late-filed tax return is subject to penalties and applicable interest under section 12.10.080. If a return is received less than 30 days prior to the tax billing date, it shall not be accepted as a late-filed return, but instead shall be considered an amended return, pursuant to subsection A.7 of this section.

6. Involuntary filing. Where the assessor has reasonable grounds to believe that a person owned taxable personal property on the date the tax liability attached to such property, and such person has failed to file a timely or late return as required by this section, the assessor may prepare and file an involuntary tax return on the owner's behalf. In addition to the tax due under an involuntary filing, penalties and applicable interest shall also be due, which shall be calculated under section 12.10.080. A taxpayer shall be liable for the taxes stated on an involuntary tax return, together with penalties and applicable interest provided in this chapter.

7. Filing amended returns. A taxpayer may file an amended return of any timely, late, or involuntary return within one year of the filing due date set forth in subsection A.1 of this section. The amended return is subject to approval by the assessor, or designee. If the taxpayer files an amended return on an involuntary filing, the assessor may reduce the involuntary filing penalty pursuant to section 12.10.080A.2.

8. Short form business personal property return. At the request of the assessor, a business owner perceived to be owning taxable personal property shall file a short form. The form shall include, among other things, a section where the person may attest to owning personal property with an overall assessed valuation of less than the amount exempted under section 12.10.020B.

(GAAB 10.05.050, 10.05.070.C; AO No. 85-182, 1-1-1986; AO No. 86-211(S-1); AO No. 88-158, 5-1-1989; AO No. 92-36; AO No. 97-128, § 2, 10-21-1997; AO No. 2014-42, § 41, 6-21-2014; AO No. 2020-96, § 3, 9-1-2021; AO No. 2025-56(S), § 1, 5-20-2025, eff. 1-1-2026)

§ 12.10.045 Disclosure of ownership data from manufactured home communities; monthly space rent increase limitation.

A. On request by the assessor, or designee, any manufactured home community subject to AMC title 21 shall disclose the vacancy rate; mobile home owner's name and contact address (if applicable); and monthly rent.

(AO No. 2020-96, § 3, 9-1-2021[1])

[1] Editor's note — This ordinance also provided that "This ordinance shall be effective, after passage and approval by the Assembly, on September 1, 2021 and shall be applicable to assessment and billing functions associated with tax year 2022. Any property tax accounts billed for tax year 2021 mailed on or after September 1, 2021 shall follow the 2021 tax year requirements which precede the effective date of this ordinance."

§ 12.10.050 Compilation of assessment list; appraisal of property.

The assessor shall annually compile a list of all persons who are subject to pay personal property tax for the tax year. The assessor shall reappraise all personal property subject to tax in the municipality once each year.

§ 12.10.060 Methods of assessment.

A. The assessor shall assess personal property at its full and true value as of January 1 of the assessment year, except as provided by state law.

B. Personal property which has a tax situs within the municipality on January 1 of the tax year is subject to taxation at the rates applicable to real property in the location within the municipality where the personal property is most often to be found.

C. Private leaseholds, contracts or other interests in land or property owned or held by the United States, a state or other political subdivision shall be taxable to the extent of the full and true value of that private interest.

D. Non-scheduled commercial aircraft that have been issued an N-number by the Federal Aviation Administration (FAA) are subject to a flat tax based on weight, regardless of value or condition. Aircraft weight is determined using the Manufacturer's Gross Weight with an Internal Load (MGWIL). The assessment formula shall be approved by the assembly.

1. There shall be a rebuttable presumption that all non-scheduled commercial aircraft located or operated within the municipality are subject to the flat tax provided in subsection D of this section.

2. Any owner of a non-scheduled commercial aircraft may rebut the presumption in subsection D.1 of this section by filing with the department a specific, detailed and sworn statement on a form provided by the department demonstrating that, in fact, the presumption does not apply and the aircraft is not subject to the flat tax under this chapter.

E. Methods to be used to assess business inventories are as follows:

1. Inventory, in the hands of a retail merchant who holds for sale, lease or rental, shall be valued at the inventory's cost to the merchant, including all costs attributed to placing inventories for sale and with a reasonable allowance, based on property substitution, for damaged, shop-worn or out-of-date goods.

2. A wholesale merchant's inventory shall be valued the same as for retail merchants as provided in subsection E.1 of this subsection.

3. Inventory held by a manufacturer or processor in the form of raw materials shall be valued based on cost, including all costs attributed to placing inventories for sale.

4. Business inventories held by manufacturers, wholesalers or retailers, or by businesspeople engaging in any combination of manufacture, wholesale or retail trade, shall be valued by examining the form, location, quantity, acquisition source and probable purchaser.

5. (Reserved)

F. Personal property shall be assessed once a year as of January 1 of the assessment year. Assessments on personal property shall not be prorated for the assessment year except as follows: Aircraft or vessels operated by United States scheduled carriers and operated in intrastate, interstate or foreign commerce shall be assessed on an apportionment basis. The assessment formula shall be approved by the assembly.

(AO No. 87-102(S); AO No. 2010-81(S-1), § 46, 12-7-2010, eff. 1-1-2011; AO No. 2020-96, § 3, 9-1-2021[1])

[1] Editor's note — This ordinance also provided that "This ordinance shall be effective, after passage and approval by the Assembly, on September 1, 2021 and shall be applicable to assessment and billing functions associated with tax year 2022. Any property tax accounts billed for tax year 2021 mailed on or after September 1, 2021 shall follow the 2021 tax year requirements which precede the effective date of this ordinance."

§ 12.10.070 Assessment notice.

A. Assessment notices for personal property shall be sent annually to all owners of record of taxable personal property containing the total assessment value of the property.

B. Assessment notices shall state that an appeal may be taken to the board of equalization only by filing written notice of appeal in the form approved by the board, specifying the grounds for the appeal, with the board of equalization within 30 days after notice of assessment is mailed.

(GAAB 10.05.060)

§ 12.10.080 Payment of tax; penalties and interest.

A. Payment of personal property tax shall be made and penalty and interest on delinquent account balances shall be calculated and applied as provided in section 12.15.060. Additional penalties and applicable interest on personal property tax owing on property listed in a late-filed or an involuntary return shall be calculated and applied as follows:

1. Filing penalties.

a. Late-filed return. A late-filed return is subject to a penalty of ten percent on the tax amount which was due, and the penalty shall be added to the personal property tax bill after the expiration of the seven-calendar-day grace period set forth in section 12.10.040A.5.

b. Involuntary return. A penalty of 20 percent on the tax amount which was due on an involuntary return shall be added to the personal property tax billing associated with the involuntary return. The assessor may reduce this penalty to ten percent upon the receipt and approval of a taxpayer's amendment of an involuntary filing within the time allowed under section 12.10.040A.7.

2. Payment penalty. If the tax bill which is sent on a late-filed or involuntary return is not paid within 30 days from the date of billing, then an additional penalty shall be applied as provided in section 12.15.060.

3. Interest. In addition to the penalties provided in this section, interest calculated in accordance with section 12.15.060 shall be applied only after 30 days from the billing date of a late or involuntary filing have elapsed. Interest shall be computed on a monthly basis for the period beginning with the original due date of the return.

(AO No. 85-182, 1-1-1986; AO No. 88-158, 5-1-1989; AO No. 92-36; AO No. 2020-96, § 3, 9-1-2021[1])

[1] Editor's note — This ordinance also provided that "This ordinance shall be effective, after passage and approval by the Assembly, on September 1, 2021 and shall be applicable to assessment and billing functions associated with tax year 2022. Any property tax accounts billed for tax year 2021 mailed on or after September 1, 2021 shall follow the 2021 tax year requirements which precede the effective date of this ordinance."

§ 12.10.090 Decals for personal property (Repealed). [1]

[1] Editor's note — Former § 12.10.090, Decals for personal property, was repealed.

Prior history: GAAB 10.10.030—10.10.080; AO No. 2020-96, 9-1-2021.

§ 12.10.100 Enforcement of tax obligations.

A. Lien. Taxes levied on personal property are a first lien on the property upon which the taxes are levied. The lien includes any penalty, interest and costs which may accrue. The lien attaches from the first day of the tax year in which the taxes are levied.

B. Distraint. The lien of personal property taxes may be enforced by distraint and sale of the property pursuant to this subsection.

1. Upon application to the trial courts and after written demand is first made of the person assessed for the amount of delinquent tax or current taxes, penalty and interest owing, the chief fiscal officer or his or her designee may obtain a judicial order directing that property for which such taxes, penalty and interest are owed shall be distrained and held for further proceedings; provided, however, the municipality demonstrates specific facts by affidavit based on personal knowledge that the property:

a. Has been concealed, is concealed or about to be concealed;

b. Is about to be destroyed;

c. Is in the process of or about to be removed from the jurisdiction;

d. Is about to be conveyed or encumbered; or

e. Is otherwise being disposed of, or about to be disposed of, in a manner so as to defraud the municipality, including but not limited to liquidation of inventory subject to a lien for personal property taxes.

2. Upon execution of an order distraining property, a hearing will be conducted no more than seven days, exclusive of Saturdays, Sundays and legal holidays, following execution of the order, at which time the validity of the municipality's lien shall be tested and other matters relevant to disposition of the tax obligation will be heard. The owner, upon execution of the order, will be notified of the time and place set for the hearing. If personal service on the owner is impossible, alternative methods of service consistent with the Alaska Civil Rules may be employed, but in no case may the hearing required by this section be held more than seven days following date of actual or constructive service on the legal owner.

3. At the hearing described in subsection B.2 of this section, the municipality and the legal owner of the property distrained may present evidence and offer argument as are helpful in determining whether there exists a valid lien for personal property taxes on the property distrained, and whether such taxes and penalty and interest remain unpaid. If, at the conclusion of the hearing the court, with or without a jury, finds that there exists a valid lien on the property distrained and that taxes, penalty or interest on such property are unpaid, it shall issue an order of sale directing that such property be sold to satisfy the tax obligation.

4. Orders of sale issued pursuant to this section shall require sale by public auction, and may not be effective sooner than 15 days following the hearing described in subsection B.3 of this section. Proceeds shall be applied first to attorney's fees, costs, penalty, interest and taxes in that order; and remaining proceeds shall be returned to the last owner of the property distrained upon presentation of a proper claim. A claim for the excess filed more that six months after the date of sale is forever barred.

C. Civil action. The municipality may, in addition to other remedies provided in this title, initiate civil actions to collect unpaid taxes, penalty and interest as provided in AS 29.45.300.

(AO No. 93-117, § 4, 8-10-1993)

§ 12.10.105 Refunds. [1]

[1] Editor's note — This section was recodified as § 12.05.062.