Resolution 15-111 Asking Legislature to Allow Cities to Determine Property Tax Exemption for Residents Over 65

CITY OF HOMER

HOMER, ALASKA

Reynolds

RESOLUTION 15-111

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, REQUESTING THAT THE ALASKA STATE LEGISLATURE AMEND ALASKA STATUTES 29.45.030(e) TO ALLOW LOCAL MUNICIPALITIES  TO DETERMINE THE VALUE OF PROPERTY TAX EXEMPTION FOR RESIDENTS OVER THE AGE OF 65.

WHEREAS, Alaska Statutes 29.45.030(e) exempts real property owned and occupied as the primary residence and permanent place of abode by a resident who is 65 years of age or older from municipal property taxes; and

WHEREAS, Alaska Statutes 29.45.030(g) states that the State shall reimburse a borough or city, as appropriate, for the real property tax revenues lost to it by the operation of AS 29.45.030(e); and

WHEREAS, A mechanism that serves to reimburse boroughs and cities for the lost revenue from senior property tax exemptions is revenue sharing; and

WHEREAS, The State’s ability to disburse revenue sharing may be jeopardized because of the change in oil revenues; and

WHEREAS, In 2014 the value of property eligible for the mandatory senior property tax exemption in the City of Homer was $61,208,700 which corresponds to $275,439 in uncollected revenue to the City of Homer; and

WHEREAS, Increased availability of high-level medical care in Alaska has increased the number of seniors moving to Alaska to retire or retiring in place; and

WHEREAS, Communities benefit from the experience, expertise, income and volunteerism of the growing senior population; and

WHEREAS, According to the Alaska Department of Labor and Workforce Development population projections, the population of residents over the age of 65 on the Kenai Peninsula is expected to grow from 12.9% of population in 2012 to 24.2% of population in 2027; and

WHEREAS, This shift in demographics disproportionately places the burden of providing municipal services on other property owners; and

WHEREAS, The increased tax burden is particularly harmful to young families and lower income property owners; and

WHEREAS, The mandatory property tax exemption coupled with the increasing senior population is untenable given the declining revenue Alaskan municipalities are facing.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Homer, Alaska, that the City of Homer requests that the Alaska State Legislature amend Alaska Statutes 29.45.030(e) to allow local governments to determine the value of property tax exemption for residents over the age of 65.

PASSED AND ADOPTED by the Homer City Council this 7th day of December, 2015.

CITY OF HOMER

                                                                                                         _____________________

                                                                                                         MARY E. WYTHE, MAYOR

ATTEST:

___________________________

JO JOHNSON, MMC, CITY CLERK

Fiscal information: N/A