Assembly rejects request asking state to allow local caps on assessment increases

The Kenai Peninsula Borough Assembly voted April 15 to reject a resolution asking the Alaska Legislature to give municipalities the discretionary authority to cap year‑to‑year increases in property tax assessments.

The resolution would have asked the legislature to amend state law (AS 29.45) to permit municipalities to “provide a cap or limit on real property tax assessment increases” and originally used a 5 percent threshold. Vice President Cooper offered an amendment to clarify the language — replacing the phrase "no more than 5%" with wording aimed at triggering the limit when assessments rise "5% or more" and adding an exception for assessment increases caused by new improvements. The amendment passed unanimously, but the underlying resolution failed on a 5‑to‑4 vote.

Supporters framed the request as a tool to smooth sharp valuation spikes that can create…