Haines Borough board rules Episcopal parcel tax-exempt, citing exclusive religious use

The Haines Borough Board of Equalization voted unanimously to find that a 6.59-acre parcel owned by Saint Michael's and All Angels Episcopal Church qualifies for a property-tax exemption as land used exclusively for religious purposes.

The board’s decision followed testimony from the church's attorney, members of the congregation and the borough assessor, and a legal debate over how Alaska courts interpret the phrase "exclusive use" in Alaska Stat. 29.45.030. The board amended its motion to describe the finding as an "improper valuation" tied to the statutory exemption, recorded the assessor's numeric values for the record and then declared the property fully tax-exempt.

Why it matters: The ruling removes a challenge to a long-standing exemption for the parcel on Haynes Highway and clarifies the board’s approach to cases where religious use has been interrupted. The assessor had recommended taxing the parcel because, the assessor said, there was not enough evidence of "actual and active" religious use in recent years; the appellants said the statute requires exclusivity of purpose rather than a fixed schedule of services.

The appellant's case: The church’s attorney told the panel the property has been held for religious use and that interruptions caused by COVID and an aging, smaller congregation do not negate an exemption that depends on exclusive purpose rather than continuous schedules. "It just says exclusive use for religious purposes," the attorney said, urging the board to preserve a longstanding exemption.

The assessor's case: The assessor presented the department's inspection and valuation for the parcel (land $227,300; building $14,400; total $241,700) and said recent evidence indicated limited activity at the site since about 2020. The assessor told the board that some Alaska decisions require courts to look at temporal frequency and regularity of use when construing "exclusive." "It does not show that the property is used exclusively, regularly, and primarily for religious purpose as required by Alaska state statutes," the assessor said.

Board deliberation and vote: Panel members discussed state statute, a cited Fairbanks-area case and constitutional concerns about burden of proof. One member noted a practical concern that the board should avoid defining personal religious practice: "I don't think it's our job to define what a religious service is," a board member said, supporting the appellants' position that the court and statute protect religious exercise. The board then moved to find for the appellant on the basis of exclusive religious use, amended the motion to characterize the decision as correcting an "improper valuation" tied to the exemption, and further amended the record to show the assessor's numeric valuation while declaring the parcel tax-exempt. The motion passed on a roll-call vote, 4-0.

Next steps: The board clerk recorded the outcome and informed the appellants they may appeal the BOE decision to superior court. The borough also maintains the right to appeal.

Details and authorities: The board referenced Alaska Stat. 29.45.030 and local borough code in deliberations and discussed the relevance of a recent superior-court decision cited by the assessor. The decision as recorded leaves the assessor's numeric valuation on the files (land $227,300; building $14,400; total $241,700) but treats the parcel as fully tax-exempt on the basis of exclusive religious use.

The hearing record shows the appellant presented photos, historic use details and testimony about occasional services and grounds use; the assessor presented inspection notes and the legal view that a multi-year gap since 2020 is relevant to the exclusive-use inquiry. The board's written finding (on the record) framed the result as an improper valuation based on statutory religious exemption and adopted an amendment to clarify that the property remains tax-exempt.