HB 13

                         LAWS OF ALASKA
                                       2026
Source  Chapter No.
SCS CSSSHB 13(STA)  _______
                                       AN ACT
Relating to optional municipal property tax exemptions for real property owned and occupied
by volunteer certified or licensed providers of fire fighting, emergency medical, mobile
intensive care paramedic services, or hazardous materials response services; relating to optional
municipal property tax exemptions for certain long-term rental units, certain mobile home
parks, real property rented to low-income families, real property owned and occupied as a
permanent place of abode, and real property owned by first-time homebuyers; and relating to
municipal tax refunds.
                                  _______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
                         THE ACT FOLLOWS ON PAGE 1
                                                                            Enrolled HB 13
                                             AN ACT
1  Relating to optional municipal property tax exemptions for real property owned and occupied
2  by volunteer certified or licensed providers of fire fighting, emergency medical, mobile
3  intensive care paramedic services, or hazardous materials response services; relating to optional
4  municipal property tax exemptions for certain long-term rental units, certain mobile home
5  parks, real property rented to low-income families, real property owned and occupied as a
6  permanent place of abode, and real property owned by first-time homebuyers; and relating to
7  municipal tax refunds.
8_______________
9   * Section 1. AS 29.45.050(r) is amended to read:
10(r) A municipality may by ordinance exempt or partially exempt from taxation
11[AN AMOUNT NOT TO EXCEED $10,000 OF THE ASSESSED VALUE OF] real
12property owned and occupied as a permanent place of abode by a resident who provides
13in the municipality volunteer (1) fire fighting services and is certified as a firefighter by
                                                 -1-  Enrolled HB 13
1the Department of Public Safety; [, OR] (2) emergency medical services or mobile
2intensive care paramedic services and is certified or licensed under AS 18.08.082; or
3(3) hazardous materials response services. If two or more individuals are eligible for
4an exemption for the same property, not more than two exemptions may be granted.
5   * Sec. 2. AS 29.45.050 is amended by adding new subsections to read:
6(aa) A municipality may by ordinance exempt or partially exempt from taxation
7a structure that contains a dwelling unit that was converted from use as a short-term
8rental unit to exclusive use as a long-term rental unit. In this subsection,
9(1) "dwelling unit" has the meaning given in AS 34.03.360;
10(2) "long-term rental unit" means a dwelling unit offered for rent for
11periods of not less than 31 consecutive days;
12(3) "short-term rental unit" means a dwelling unit offered for rent for
13periods of 30 consecutive days or less; "short-term rental unit" does not include a
14(A) hotel, motel, or bed and breakfast;
15(B) commercially operated hunting or wilderness camp; or
16(C) dwelling unit operated by a government entity or charitable
17organization that provides temporary housing to individuals or family members
18of individuals who are being treated for trauma, injury, or disease.
19(bb) A municipality may by ordinance exempt or partially exempt from taxation
20a mobile home park for up to 10 years after the mobile home park is constructed or
21renovated.
22(cc) A municipality may by ordinance exempt or partially exempt from taxation
23real property rented to a low-income family if the monthly rent charged to the low-
24income family is not more than 30 percent of the family's income. In this subsection,
25(1) "family's income" means the sum of the previous tax year's adjusted
26gross incomes for each person in the family who earned income divided by 12;
27(2)   "low-income family" has the meaning given to "low-income
28families" in 42 U.S.C. 1437a(b)(2)(A).
29(dd) A municipality may by ordinance exempt or partially exempt from taxation
30real property owned and occupied as a permanent place of abode by a resident of the
31municipality.
 Enrolled HB 13  -2-
1(ee) A municipality may by ordinance exempt or partially exempt from taxation
2residential real property owned and occupied by a first-time home buyer.
3  * Sec. 3. AS 29.45.500(a) is amended to read:
4(a) If a taxpayer pays taxes under protest, the taxpayer may bring suit in the
5superior court against the municipality for recovery of the taxes. If judgment for
6recovery is given against the municipality, or, if in the absence of suit, it becomes
7obvious to the governing body that judgment for recovery of the taxes would be obtained
8if legal proceedings were brought, the municipality shall refund the amount of the taxes
9to the taxpayer with interest [AT EIGHT PERCENT] from the date of payment plus
10      costs. The interest rate is three percentage points above the 12th Federal Reserve
11      District discount rate in effect on January 2 of the year of payment.
12 * Sec. 4. AS 29.45.500(b) is amended to read:
13(b) If, in payment of taxes legally imposed, a remittance by a taxpayer through
14      error or otherwise exceeds the amount due, and the municipality, on audit of the account
15      in question, is satisfied that this is the case, the municipality shall refund the excess to
16      the taxpayer [WITH INTEREST AT EIGHT PERCENT FROM THE DATE OF
17      PAYMENT]. A claim for refund filed one year after the due date of the tax is forever
18      barred.
                                               -3-  Enrolled HB 13