Kenai committee backs asking state to let boroughs set cap for volunteer firefighter tax break

The Kenai Peninsula Borough legislative committee considered Resolution 20-26-005 on March 7, a proposal asking the Alaska Legislature to allow municipalities to set a not-to-exceed amount for the optional volunteer firefighter/EMS real property tax exemption.

Mister Eicher, the sponsor, told the committee he had been a volunteer firefighter and argued the current $10,000 exemption produces only a small tax benefit for most property owners. “This $10,000 comes to 60 to $80.80 bucks,” he said, and added that the figure “just... pales in comparison to the sacrifice that these upstanding citizens are contributing to our community.” Eicher said the resolution would not itself change local exemptions but would give municipalities the option to change the cap later; he said a state legislator acquaintance is willing to help pursue the change at the state level.

The discussion centered on two practical questions: how large a municipal cap should be and what the local fiscal effect would be if the cap were raised. Mister Tundson asked when the state statute had been enacted and whether the $10,000 figure dated from a recent change. A committee member who consulted Westlaw reported local enactment in 2010 and said the state first enacted the underlying statute in 2003 — a timeline the committee discussed but did not independently verify during the meeting.

Several members asked about other forms of compensation for volunteer firefighters and EMS personnel, such as stipends or private discounts. Mister Eicher said he was not aware of mortgage-rate reductions or similar programs. Mayor Michuki told the committee the borough’s voluntary exemption was adopted locally in 2011 (a statement he offered during discussion) and noted that several service areas do receive stipends; he offered to provide a breakdown of those stipends to clarify what volunteers already receive.

Committee members pressed for concrete fiscal numbers before any local change. Committee member Truesdale asked how many exemptions exist and what the total exposure would be if the cap were doubled or tripled; Eicher reiterated that the resolution only requests authority to set a cap and does not immediately alter exemptions. Mayor Michuki said the budget document shows exemptions’ annual cost and characterized the fiscal impact as “minuscule,” limited by the number of volunteers.

No formal motion or vote on Resolution 20-26-005 is recorded in the transcript. The committee concluded discussion and the chair adjourned the meeting at 04:23.

The committee requested additional fiscal detail and a breakdown of stipends for service areas to better estimate the budget impact if municipalities later exercise the authority sought in the resolution.