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?
Correct Answer
B) $3,750
Step 1 — Determine assessed value: The borough assesses at 100% of market value, so assessed value = $480,000. Step 2 — Apply the senior exemption under AS 29.45.030: Taxable value = $480,000 − $150,000 = $330,000. Step 3 — Apply the mill rate: 1 mill = $1 per $1,000 of taxable value. Tax = $330,000 × (12.5 ÷ 1,000) = $330,000 × 0.0125 = $4,125. Wait — rechecking: $330,000 × 0.0125 = $4,125. That equals option C. Let me re-examine: $330,000 ÷ 1,000 = 330; 330 × 12.5 = $4,125. The correct answer is $4,125, which is option C. [Self-correction applied — correct_answer should be C.]
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