In April, higher tax assessments for Skagway property owners of commercial historic district properties will begin arriving. The municipality said it delayed the action as long as it could.
The Municipality of Skagway notified commercial property owners in the historic district of an increase in property values of approximately 50%.
Assessor James Canary, who was hired by the municipality, said, “The reason for the large increase is to comply with Alaska State Statute 29.45.110(a). which states the assessor shall assess property at its full and true value as of Jan. 1 of the assessment year.”
Borough Manager Brad Ryan said the municipality has no control over the assessment results.
“We hire an assessor,” Ryan said. “We don’t weigh in on what his assessments are. And he has his own regulations to go forth and do his assessment process and then submit them to us.”
Ryan explained that assessed values in the historic district should have already increased, but the process was halted during the pandemic.
“In 2020, when we first signed him on, there was a lot of discussion about what we should do, and there was just a hold in 2020,” Ryan said. “Because there was indication that the rates, or the assessment should go up considerably, but nobody knows what’s going to happen with COVID. So there was just a pause on it, until now.”
Updated assessments will be in the mail by April 11, followed by a public notice. Property owners have until May 13 at 4 p.m. to appeal. If appeals are not resolved between the assessor and the appellate, the appeal is sent to the May 22 Board of Equalization, made up of the assembly.
According to Tax Clerk Susie Anderson, in 2023 out of approximately 65 petitions, only two went to the Board of Equalization.
Mike Healy owns two businesses in the historic district, Boomtown Buds and Skagway Brewing Company.
“…I agree that values have been too low,” Healy said. “And that has actually created a banking issue for me in the past, because the value wasn’t appraised as high as what it should have been. But I think, my gut says 50%, that’s, that’s pretty far out there. I don’t agree with a 50% increase, that’s for sure. But that being said, I don’t see the data. You know, I don’t see that data so I can’t, I can’t say where I disagree with how it was derived.”
Healy knows he has 30 days to appeal, but points out those 30 days are during one of the busiest times of the year, while he’s trying to open his businesses for the season. He said the town is still recovering from the economic losses of COVID-19.
“This does feel too soon to me,” Healy said. “I don’t think we bounced back. I think we’re still going to see some empty storefronts this year. The businesses are definitely still recovering. And I do think this is early. I think another year would have been, would have been warranted.”
Tax bills go out July 1 and are due Aug. 31.