Property Taxes

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Property Tax Rates

Each Borough residents’ property tax bill (whether inside or outside of Cities) is made up of several individual components, called levies, which add up to the total mill rate.  Each of those levies is used to fund different government services.  See the table below for a side-by-side comparison of what Soldotna City land owners pay, versus those living in the Borough just outside the City limits.

KPB Residents
Adjacent to the City Pay These Mill Rates (2017)
 City Residents Pay These Mill Rates (2017)


If Annexed into the City

Difference in Mill Rate
Difference in Exemptions

Central Emergency Services

2.60 mills

 2.60 mills No Change No change. All eligible KPB
exemptions apply.

Borough Administration

4.50 mills

4.50 mills

No Change No change. All eligible KPB
exemptions apply.

Central Peninsula Hospital

.01 mills

.01 mills

No Change No change. All eligible KPB
exemptions apply.

Borough Road Maintenance

1.40 mills

0 mills

- 1.40 mills All eligible KPB
exemptions apply.
 City of Soldotna (all services, including road maintenance) 0 mills 0.50 mills + 0.50 mills City exemptions apply.


Total


8.51 mills


7.61 mills

Decrease By
0.9 Mills

The first three levies are identical – whether inside the City or outside - property owners pay a combined mill rate of 7.11 mills to the Borough for: Central Emergency Services; general Borough Administration; and Central Peninsula Hospital.  All eligible Borough exemptions (covered below) apply equally to this 7.11 mills for both City residents and residents in the areas outside the City.

The only difference in property taxes is that Soldotna property owners pay 0.5 mills to the City of Soldotna for all services the City provides, instead of the 1.4 mills Borough residents pay for borough road maintenance.  Therefore, residents inside the City of Soldotna currently pay a mill rate that is .9 mills lower than Borough residents just outside the City.

The City is able to keep our mill rate low, in part, because of sales tax revenues generated in our strong retail and commercial sector.  For the fiscal year ending June 30, 2016, sales tax accounted for 96% of Soldotna's tax revenue, with just 4% coming from property tax.

Property Tax Exemptions

Your property tax bill may be reduced through the application of exemptions or deferments. Both the City of Soldotna and the Kenai Peninsula offer tax exemptions to qualifying individuals.   For more information on exemptions and deferments, including instructions and application materials, please visit the KPB Assessing Department's Exemptions and Deferments Webpage.

In general, property taxes are calculated by subtracting the exemption amount from the taxable value and then multiplying by the mill rate.  It’s important to note that exemption amounts may differ between the City and the Borough, and their respective mill rates are applied to the remaining assessed value independently.  In all cases, City residents are eligible for Borough exemptions, for taxes levied by the Borough for Central Emergency Services, general borough administration, and central peninsula hospital.

An example of where the exemption amount granted by the Borough and the City are the same is the disable veteran exemption.  Both the City and the Borough have an unlimited property tax exemption for qualified disabled vets.  Therefore, regardless of where you live you would receive a full exemption.  The same holds true for farm use deferments and conservation easement reduced valuations – they are both offered equally in the City and Borough.

The City and the Borough differ, however, on the Senior Citizen exemption.  While both are required by state law (AS 29.45.050) to provide an exemption of $150,000 of assessed value for the primary residence of a senior citizen, state law also allows municipalities the option of increasing the senior exemption in excess of the first $150,000.  At this time, the City of Soldotna's exemption remains at $150,000, while the Borough has authorized up to $300,000.   That means that a home in the City of Soldotna assessed at $400,000 would be taxed by the Borough for $100,000 of value, and taxed by the City for $250,000 of value.

See the table below for a side-by-side comparison of the exemptions available to residents of the Borough and the City.

 Exemptions/Deferments

Borough Exemptions

City of Soldotna Exemptions

Disabled Veterans Unlimited Unlimited
Senior Citizens $300,000 $150,000
Farm Use Deferment Based on farm use, land value, and
income derived from farming.
Based on farm use, land value, and
income derived from farming.
Home Owners $50,000 $0
Disabled Resident $500 $0
Volunteer Firefighter/EMS $10,000 $0
Conservation Easement
Reduced Valuation
Land is assessed based on land
value minus easement value.
Land is assessed based on land
value minus easement value.