Kenai Peninsula Borough adopts resolution asking state to allow caps on annual assessment increases

The Kenai Peninsula Borough Assembly voted 8–1 on Dec. 2 to adopt Resolution 2025‑046, a request that asks the Alaska Legislature to grant municipalities discretionary authority to limit how much a parcel’s assessed value may rise in a single year.

The resolution, introduced by Assemblymember Dan Dunn and amended by Assemblymember Matt Hicks, asks the state to allow a local ordinance that would, for example, cap assessment increases at 5% over the prior taxable year except when title transfers or improvements occur. Borough attorney Kevin Kelly read the amended, as‑proposed language during the meeting.

Why it matters: Assembly members said recent rapid valuation increases — described in the meeting as about a 34% borough‑wide jump in property valuations over several years — have created sharp, uneven tax burdens for property owners. Supporters said asking the state for authority is a first step that would give the borough a tool to smooth spikes without creating new taxpayer classes or permanently freezing values.

Supporters and critics: Supporters including Vice President Cooper, Assemblymember Neeson and Mayor Peter Michicky said the resolution simply requests the option to adopt a cap later by ordinance and does not itself change assessments or mill rates. ‘‘We’re asking for an extra tool where we can limit growth like a lot of states have done,’’ Michicky said, noting the request targets periods of rapid escalation and that any cap could be temporary and tie into mill‑rate decisions.

Assemblymember Dunn, who moved adoption, said he would like more public input and wanted more detail before final implementation; he cast the lone ‘‘no’’ vote on the final motion. Several members questioned technical language during debate — whether the proposal should reference ‘‘full and true value’’ or ‘‘real property assessed value’’ — and accepted the friendly amendment by Hicks to align the text with section 1’s phrasing.

Public input: The assembly held a public hearing on the resolution; no speakers registered to speak specifically on the measure during that hearing, though many members of the public used the later public‑comment period to raise related concerns about tax fairness and budgeting. Justin Hanson and other residents urged clarification on how transfers would be handled.

Next steps: The adopted resolution will be forwarded to the Alaska Legislature and to borough stakeholders for follow‑up. If the Legislature amends state law as requested, the borough would then draft local code and hold additional public hearings to define any cap, reset triggers (such as ownership change), and administrative rules.

Votes at a glance: Resolution 2025‑046 adopted 8–1. The clerk recorded the final roll call with eight yes votes and one no vote cast by Assemblymember Dunn.