The reassessment of Haines’s property values is almost complete. The notices will be mailed soon, and borough officials want the public to understand that an increase in assessed value will not necessarily result in a raise in taxes.
The Haines Borough is updating its property tax system. Some residents are afraid this will increase their tax bill. Borough manager Annette Kreitzer wants to reassure the public.
Kreitzer: “My goal is to not have a major increase in property tax. We are very sensitive to the fact that things are very expensive in Haines. An increase in the assessment is not necessarily going to translate into an increase in your property tax.”
On average, most homes’ assessed values have increased.
Michael Dahle has been contracted by the borough to improve the way property taxes are handled.
Dahle: “The average change this year is an increase of 17% from the 2022 assessed value. Each property is going to be different, that is an average, and so there are actually some that saw a decrease, there are others that increased more than that 17%.”
The borough will communicate clearly the change to property owners.
Dahle: “One change we are making this year is that the assessment notice will list the prior year’s assessed value besides this year’s assessed value. So it will be really easy for the taxpayer to compare. They won’t have to go try to dig up last year’s card or call us, it will be right on the assessment notice, it will show prior year’s value and then current year’s value.”
The amount owed in taxes will depend on the mill rate. This rate can be lowered so that a property assessed at a higher value can be taxed at a lower rate, resulting in no changes in the amount owed by property owners.
Jila Stuart is the chief fiscal officer for the borough. She says there are different mill rates applied to different parts of town.
Stuart: “So there are ten separate mill rates in the borough, and those distinctions are caused by fire service areas, and road service areas, the townsite service areas. So depending on the level of service a property receives, they pay a different mill rate.”
Stuart says the high service areas can have a rate of about double the lowest service areas.
Stuart: “The highest mill rate in the tax year for 2022 was the Dalton trail and Eagle Vista RMSA paid 12.84, and the lowest mill rate is the borough rate that’s paid at excursion inlet and other rural areas, and that was 6.67.”
The borough assembly sets the mill rates, informed by the recommendations of the borough manager. The assembly could lower the mill rates, to account for the overall increase in assessed values.
Stuart explains:
Stuart: “For example if the assessed value goes up 16%, and the mill rate stays the same as it was in 2022, the borough would collect an additional 16% in property tax revenue. But in order to maintain the same level of services we had we probably don’t need an extra 16% property tax revenue. So the assembly can choose to reduce the mill rate so that even though the property values go up 16% for example, the property tax revenue goes up less, or stays the same.”
Borough manager Kreitzer says the borough is not trying to increase tax revenue through those higher assessed values.
Kreitzer: “ What we might do is drop down to a level that’s consistent with what’s necessary for the budget, and so that’s what we would be looking at for each of these mill rates.”
Residents will start receiving the assessment notices next week. There is a thirty days appeal period. Property owners will be given the opportunity to contest the new assessed values throughout the month of April. Michael Dahle, the assessor, expects many people will want to ask questions.
Dahle: “There is lots of changes in assessed values this year. We anticipate that people may have some questions, and we very much encourage them to touch base with us, call the office and talk to us or stop in, and we are happy to explain the steps that were taken., To look specifically at their assessed value, and how and why it changed.”
Dahle says if property owners aren’t convinced by his arguments, they have further recourse.
Dahle: “If they want to proceed to a formal review, if we haven’t been able to answer their questions, there is a one page form that they fill out, and we can help them with that. Then after the administrative review, if they still feel their value should be different than what we feel, then it becomes a formal appeal, and goes befor the board of equalization.”
In Haines, the borough assembly serves as the board of equalization. They will make the final decision in the case of an appeal.