HB169 • 2026

MUNICIPAL PROPERTY TAX EXEMPTION

An Act relating to a municipal property tax exemption for real property owned and occupied as the primary residence and permanent place of abode by a resident 65 years of age or older, a disabled veteran, or the widow or widower of a resident 65 years of age or older or a disabled veteran; and providing for an effective date.

Elections Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: REPRESENTATIVE TOMASZEWSKI
Last action: 2025-04-02
Official status: (H) CRA
Effective date: Not listed

Plain English Breakdown

The bill text states the act takes effect immediately upon passage, but does not list a calendar date for implementation in all jurisdictions.

Municipal Property Tax Exemption for Seniors and Veterans

This bill increases the property tax exemption amount to $250,000 for eligible seniors, disabled veterans, and their widows or widowers in Alaska.

What This Bill Does

Increases the home value exempt from municipal taxes from $150,000 to $250,000.
Allows municipalities with voter-approved ordinances to grant exemptions to widows or widowers under age 60 if their spouse was a disabled veteran or died from service-connected causes.
Permits local governments to offer tax breaks beyond the standard limit in cases of financial hardship according to department regulations.
Requires that only one person can claim this exemption for any single property.

Who It Names or Affects

Residents aged 65 or older who own and live in their primary home.
Disabled veterans who own and occupy their permanent residence.
Widows or widowers of eligible seniors or disabled veterans, including those under age 60 if local rules allow.

Terms To Know

Municipality: A city, borough, or town that can set its own tax rules through voter-approved ordinances for certain exemptions.
Assessed value: The official dollar amount assigned to a property used to calculate the $250,000 exemption limit.

Limits and Unknowns

Local governments must decide their own rules and application steps if they choose to offer these exemptions.
Properties transferred mainly to get this tax break are not eligible after an official review by the assessor.
The bill does not specify which municipalities will adopt the new exemption amounts or expanded eligibility.

Bill History

2025-04-02 596
(H) REFERRED TO COMMUNITY & REGIONAL AFFAIRS
2025-04-02 596
(H) CRA, FIN
2025-04-02 596
(H) READ THE FIRST TIME - REFERRALS

Official Summary Text

MUNICIPAL PROPERTY TAX EXEMPTION
An Act relating to a municipal property tax exemption for real property owned and occupied as the primary residence and permanent place of abode by a resident 65 years of age or older, a disabled veteran, or the widow or widower of a resident 65 years of age or older or a disabled veteran; and providing for an effective date.

Current Bill Text

Read the full stored bill text

HB0169a -1- HB 169
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0827\A

HOUSE BILL NO. 169

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY REPRESENTATIVE TOMASZEWSKI

Introduced: 4/2/25
Referred: Community and Regional Affairs, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to a municipal property tax exemption for real property owned and 1
occupied as the primary residence and permanent place of abode by a resident 65 years 2
of age or older, a disabled veteran, or the widow or widower of a resident 65 years of age 3
or older or a disabled veteran; and providing for an effective date." 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
* Section 1. AS 29.45.030(e) is amended to read: 6
(e) The real property owned and occupied as the primary reside nce and 7
permanent place of abode by a resident who is (1) 65 years of a ge or older; (2) a 8
disabled veteran; or (3) at least 60 years of age and the widow or widower of a person 9
who qualified for an exemption under (1) or (2) of this subsect ion is exempt from 10
taxation on the first $250,000 [$150,000] of the assessed value of the real property. A 11
municipality may by ordinance approved by the voters grant the exemption under this 12
subsection to the widow or widower under 60 years of age of a p erson who qualified 13
for an exemption under (2) of this subsection or to a resident who is the widow or 14
34-LS0827\A
HB 169 -2- HB0169a
New Text Underlined [DELETED TEXT BRACKETED]

widower of a person who dies from a service-connected cause sus tained while serving 1
as a member of the United States armed forces or as a member of the National Guard. 2
A municipality may, in case of h ardship, provide for exemption beyond the first 3
$250,000 [$150,000] of assessed value in accordance with regulations of the 4
department. Only one exemption ma y be granted for the same prop erty, and, if two or 5
more persons are eligible for an exemption for the same propert y, the parties shall 6
decide between or among themselves who is to receive the benefi t of the exemption. 7
Real property may not be exempt ed under this subsection if the assessor determines, 8
after notice and hearing to the parties, that the property was conveyed to the applicant 9
primarily for the purpose of obt aining the exemption. The deter mination of the 10
assessor may be appealed under AS 44.62.560 - 44.62.570. A muni cipality shall 11
determine the eligibility requirements and application procedur e for an optional 12
exemption provided under this subsection. In this subsection, " widow or widower" 13
means a person whose spouse has died and who has not remarried. 14
* Sec. 2. This Act takes effect immediately under AS 01.10.070(c). 15