Opinion ID: 2524427
Heading Depth: 5
Heading Rank: 2

Heading: Alaska Statute 29.45.080(c): mill rate based on maximum property value under the 225% valuation limitation

Text: The more ambiguous provision is AS 29.45.080(c) which imposes a limit on the total property value that a municipality may tax. This section, which is the primary subject of this appeal, limits the total taxable property value to 225% of the average per capita value of property in the state, times the number of residents in the municipality. When the total property value in the municipality exceeds this value, the municipality must reduce the total taxable property value in order to bring the municipality's total tax base within the limit imposed by the 225% valuation cap. The statute does not make clear how the municipality should make this reduction, however, and the present case asks us to settle this confusion. Subsection .080(c) provides: A municipality may levy and collect a tax on the full and true value of that portion of taxable property taxable under AS 43.56 as assessed by the Department of Revenue which value, when combined with the value of property otherwise taxable by the municipality, does not exceed the product of 225 percent of the average per capita assessed full and true value of property in the state multiplied by the number of residents of the taxing municipality. Thus, the equation to find the maximum taxable property value is