AK HB13

Municipalities may exempt or partially exempt from property tax: dwelling units converted from short-term rentals (30 days or less) to long-term rentals (31+ days), mobile home parks for up to 10 years after construction or renovation, property rented to low-income families where rent does not exceed 30% of family income, owner-occupied primary residences, and first-time homebuyer residences.

Short-term rental exemptions exclude hotels, motels, bed and breakfasts, commercial hunting/wilderness camps, and temporary housing operated by government or charitable organizations for medical patients and families.

Interest rate on municipal tax refunds for protested taxes changes from a fixed 8% to a variable rate of 3 percentage points above the 12th Federal Reserve District discount rate as of January 2 of the payment year.

Interest on refunds for overpayment of taxes through error is eliminated entirely (previously 8% from date of payment).

Sponsored by Representatives Gray, Eischeid, Fields, Galvin, Josephson, and Mina; referred to Senate State Affairs Committee on 3/18/26.