Thomas owns a single-family home in Fairbanks. He is 67 years old, has lived in the home as his primary residence for the past 12 years, and meets the income eligibility requirements under state law. Under Alaska's senior citizen property tax exemption, what benefit is Thomas most likely entitled to receive on his primary residence?
Correct Answer
A) An exemption from the first $150,000 of assessed value of his primary residence for purposes of local property taxation.
Under AS 29.45.030, Alaska provides a mandatory senior citizen and disabled veteran property tax exemption that exempts the first $150,000 of assessed value of a primary residence from local property taxation. Qualifying residents must be at least 65 years old (or a disabled veteran) and meet residency requirements. Thomas, at age 67 and having lived in the home as his primary residence for 12 years, would qualify for this exemption on the first $150,000 of his home's assessed value.
Why This Is the Correct Answer
Under AS 29.45.030, Alaska provides a mandatory senior citizen and disabled veteran property tax exemption that exempts the first $150,000 of assessed value of a primary residence from local property taxation. Qualifying residents must be at least 65 years old (or a disabled veteran) and meet residency requirements. Thomas, at age 67 and having lived in the home as his primary residence for 12 years, would qualify for this exemption on the first $150,000 of his home's assessed value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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Previous Question
A first-time homebuyer named Karen recently purchased a primary residence in Anchorage. Her neighbor tells her that Alaska has no state income tax and no state sales tax. Karen asks her licensee whether there is also no property tax in Alaska. Which of the following best describes how property taxes work in Alaska?
Next Question
A residential property in the Matanuska-Susitna Borough has an assessor's market value of $480,000. The borough assesses property at 100% of market value. The local mill rate is 12.5 mills. The property owner qualifies for Alaska's senior citizen exemption under AS 29.45.030, which exempts the first $150,000 of assessed value. What is the owner's annual property tax bill?