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 summary does not provide specific details on how municipalities will implement and enforce the tax exemption rules, leaving this aspect uncertain.

Municipal Property Tax Exemption for Seniors, Disabled Veterans, and Their Widows/Widowers

This act creates a municipal property tax exemption of up to $250,000 for the primary residence of certain elderly residents, disabled veterans, or their widows/widowers.

What This Bill Does

Creates an exemption from property taxes on the first $250,000 of assessed value for real property owned and occupied as a primary residence by eligible individuals.
Eligible individuals include those who are 65 years or older, disabled veterans, or widows/widowers of such individuals.
Municipalities can extend the exemption to younger widows/widowers of disabled veterans through voter-approved ordinances.
Requires municipalities to set eligibility requirements and application procedures for this tax exemption.
Limits the exemption so that only one person per property may receive it, with exceptions for hardship cases.

Who It Names or Affects

Residents aged 65 or older who own their primary residence in Alaska.
Disabled veterans and their widows/widowers.
Municipalities in Alaska responsible for implementing the tax exemption.

Terms To Know

Primary Residence: The main home where a person lives most of the time.
Disabled Veteran: A veteran who has been found by the U.S. Department of Veterans Affairs to have a service-connected disability.

Limits and Unknowns

The bill does not specify an effective date, leaving it unclear when the exemption will start.
It is uncertain how municipalities will implement and enforce the tax exemption rules.

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