JUNEAU — To fight high housing costs in Juneau, city officials are considering property tax exemptions for some developments.
In its most recent session, the Alaska Legislature gave municipalities more leeway in allowing property tax exemptions. The City and Borough of Juneau Committee of the Whole is now looking to implement their new authority, according to the Juneau Empire.
Municipalities are now able to use property tax exemptions or deferrals to encourage subdivision and development of property as well as to renovate deteriorating property.
Some committee members said they worry people will allow their homes to fall into disrepair just to obtain a tax exemption, which City Finance Director Bob Bartholomew said may happen.
"If you go down this path, I don't know that you can completely avoid incentivizing deterioration," Bartholomew said.
In terms of subdivisions, Bartholomew said when property owners split their land the value of that land goes up because it is closer to development. Cities are now able to exempt property owners from paying property taxes on the increased value of their land.
Committee member Jesse Kiehl warned the committee that they should be careful not to implement a tax code that can be easily exploited. He said the committee should also consider programs that incentivize development.
Deputy City Manager Rob Steedle will write draft ordinances that take into account the committee's concerns and present them at a later date.