AK SB87

Municipalities may exempt deteriorated property from taxation for up to 10 years beginning when substantial rehabilitation, renovation, demolition, removal, or replacement of structures begins.

Municipalities may allow deferral of tax payments on deteriorated property for up to 5 years, with deferred amounts becoming a lien on the property each year; entire ownership transfer triggers immediate payment of all deferred taxes.

Only one exemption and one deferral may be granted to the same property, and both cannot be in effect simultaneously on the same portion of the property.

Deteriorated property includes residential property in designated deteriorating areas owned by entities with at least 2 residential properties and 8+ residential units in that area, or commercial/multi-unit property (8+ units) subject to environmental remediation orders, structures 15+ years old without substantial rehabilitation, or located in designated deteriorating areas.

Municipalities must adopt ordinances with specific eligibility requirements and require written applications specifying when deferred tax payments will become due.