Understanding Your property tax bill

Have you ever opened your property tax bill and wondered how the Borough came up with that number? Or maybe you've heard neighbors complain their taxes went up "for no reason." Property taxes can be confusing, but they're essential for funding local services we all use. Let's explore how property taxes work in the Mat-Su Borough and clear up some common misunderstandings.

The Mat-Su Borough Assessor's Office has an important job that affects every property owner in our community. Their primary task is determining the fair market value of properties throughout the Borough. This doesn't mean they set your taxes; they simply determine what your property is worth based on current market conditions and the information they have available.

Contrary to what many believe, the Borough Assessor doesn't just use the price you paid for your home. Instead, trained assessors look at recent sales of similar properties in your area, the condition of your property, improvements you've made, and other factors that influence market value. This process, called mass appraisal, is supposed to help ensure everyone pays their fair share based on what their property is actually worth today, not what it cost years ago.

Another common misconception is that the Assessor's Office raises values to increase tax revenue. In reality, the total amount of property tax collected is determined by the Borough Assembly when they set the mill rate each year. Even if property values go up across the Borough, the Assembly could lower the mill rate so the total tax collected stays the same.

The tax assessor calculates your property tax bill by multiplying your assessed value by the mill rate. One "mill" equals $1 of tax for every $1,000 of assessed value. For example, if your home is assessed at $300,000 and the mill rate is 10, your tax bill would be $3,000. Different areas of the Borough may have additional service area taxes for things like road maintenance or fire protection, which is why your neighbor's tax bill might differ from yours. Residents of the three cities all pay less in property tax than non-city property owners.

Some residents believe they're being unfairly targeted when their assessment increases. However, assessments are based on data, not personal opinions. If nearby similar properties are selling for more than they used to, your assessment will probably increase too. The good news is that if you disagree with your assessment, you have the right to appeal. The process starts with an informal discussion with the Assessor's Office, and if that doesn't resolve your concerns, you can file a formal appeal with the Board of Equalization.

Senior citizens and disabled veterans should know that significant exemptions are available. Alaska offers a $150,000 property tax exemption for eligible seniors and disabled veterans. Authorities would assess a $250,000 home as if it were worth only $100,000. This program helps many Mat-Su residents stay in their homes as they age.

If you want to learn more about your property assessment or tax bill, start by visiting the Mat-Su Borough website at matsugov.us and clicking on "Property & Land" or call the Assessor's Office directly at (907) 861-8642. The staff can explain how your assessment was determined and answer questions about exemptions you might qualify for. You can also visit the Borough office in Palmer to speak with someone in person.

Though nobody enjoys paying taxes, these funds support our schools, emergency services, planning, parks, and other essential services that make the Mat-Su Borough a great place to live.

Christian M. Hartley is a 40-year Alaskan resident with over 25 years of public safety experience and public service. He runs a freelance business, Big Lake Writer, from home in Big Lake that he shares with his wife of 19 years and their three teenage sons.