(a) Exemption
applications filed after January 15 of the assessment year, or after a date
provided by ordinance as specified in
AS
29.45.030(f), must be
accompanied by an affidavit stating the reason for the late filing.
(b) To qualify for a hardship exemption
beyond the first $150,000 of assessed value of real property under
AS
29.45.030(e), the applicant
must apply by completing Form 21-400c and submitting the form, including
necessary attachments, to the municipal assessor before July 1, or before a
date provided by ordinance as specified in
AS
29.45.030(f), of the
exemption year.
(c) An eligible
applicant may qualify for a hardship exemption beyond the first $150,000 of
assessed value of real property if the amount of the applicant's tax bill is
greater than two percent of the applicant's gross household income. An
exemption will be granted only for that portion of the applicant's taxes in
excess of two percent of the gross household income. "Gross household income"
means total annual compensation, earned and unearned, from all sources, of all
members of the household.
(d) In
cases of extreme hardship, an exemption up to 100 percent of the applicant's
assessed value of real property may be granted by a two-thirds vote of the
governing body.
(e) Hardship exists
when the amount of taxes owed is in excess of two percent of an applicant's
gross household income.
(f) The
following are examples of hardship exemption calculation:
(1) Example A
Household Income: $30,000 Assessed Value: 200,000 Mill Rate:
10.0 Taxes Calculated: $200,000 x 10.0 mills = $2,000 $150,000 Cap: $150,000 x
10.0 mills = $1,500 Tax Liability: $500 Ability to Pay: $30,000 x 2% = 600 = No
hardship exemption allowed
(2) Example B
Household Income: $10,000 Assessed Value: 200,000 Mill Rate:
10.0 Taxes Calculated: $200,000 x 10.0 mills = $2,000 $150,000 Cap: $150,000 x
10.0 mills = $1,500 Tax Liability: $500 Ability to Pay: $10,000 x 2% = $200 Tax
Liability: $500 Ability to Pay: (200) Hardship Exemption: $300
