FY2024-09 Appeals for ExemptionI KODIAK ISLAND BOROUGH
2 ORDINANCE NO. FY2024-09
3
4 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING
5 KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.35
6 REAL PROPERTY TAX, SECTION 3.35.030 REAL AND PERSONAL PROPERTY EXEMPTED
7 FROM TAXATION AND 3.35.050 and 3.35.055 REGARDING BOARD OF EQUALIZATION
8
9 WHEREAS, Kodiak Island Borough Code 3.35.030 regarding Real and Personal Property
10 Exempted from Taxation currently provides for the Borough Assessor's determination of
11 exemption status to be appealed directly to the superior court; and
12
13 WHEREAS, a recent Superior Court decision ruled that Alaska Statutes 29.45.200 provides the
14 right to appeal the Borough Assessor's determination of exemption status to either the superior
15 court or the Board of Equalization, and that a local ordinance cannot preclude the right to appeal
16 to the Board of Equalization granted in the statutes; and
17
18 WHEREAS, AS 29.45.200 provides that the governing body sits as the Board of Equalization
19 to hear appeals from a determination of the assessor, and permits the governing body to delegate
20 that role to one or more boards; and
21
22 WHEREAS, the Assembly desires to designate the Assembly as the Board of Equalization for
23 appeals from the Borough Assessor's determination of exemption status, leaving the appointed
24 Board of Equalization as the body to hear appeals from the Borough Assessor's determination of
25 valuation.
26
27 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
28 BOROUGH that:
29
30 Section 1: This ordinance is of a general and permanent nature and shall become a part of the
31 Kodiak Island Borough Code of Ordinances.
32
33 Section 2: That section 3.35.030 of the Kodiak Island Borough Code of Ordinances is amended
34 to read as follows:
35
36 3.35.030 Real and personal property exempted from taxation.
37 ...
38 G. Administrative Review and Appeal for All Exemptions Except Community Purpose.
39 1. If the assessor, after review of the application for exemption, determines that the property does
40 not qualify for the exemption, the assessor will notify the applicant in writing denying the
41 exemption and providing the reasons for the assessor's decision.
42 2. The owner of record may, within 30 days of the date of mailing of the notice under (G)(1)
43 of this section, either request A formal revie ; meeting with reconsideration by the assessor
Ordinance No. FY2024-09 Page 1 of 10
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
tti e 30 days f thp date of the assess- letter denying the a ptdG under this subsection
(G)(2) or appeal the determination under subsection H.
6—The owner of record may present additional documentation and other evidence supporting
their claim of exemption with their request for reconsideration at the rt;v4;,v mee#pg for
consideration by the assessor.
b. Upon receipt of a timely request for reconsideration, the The assessor shall grant or
deny the reconsideration. If reconsideration is granted, the assessor shall issue a new
written final decision providing the reasons for the assessor's determination, within 30 days
of the meeting., will issue a letter with their final EiPt8FFRORati9R.
C. A timely request for reconsideration suspends the time for appeal, and a new 30-
day time limit for appeals under subsection H shall begin from the date of mailing of the
assessor's decision on the reconsideration request.
3. Community purpose exemptions are reviewed in accordance with subsection (1)(7) of this
section.
H. Judiciai-Review of the Assessor's Denial of an Exemption uUnder AS 29.45.030.
LJ... /,... exhausted o4e.d 4L.e erl m'n'-fr-P ie re
1. x u _ ., After an assessor's determination denying
an exemption application in whole or in part, only the owner of record may appeal a decision
by the assessor to deny an exemption under this section. ,and -must An appeal may be made
either to the Assembly, sitting as a Board of Equalization under KIBC 3.35.055,(A)-(E) or to
the Superior Court, Third Judicial District, State of Alaska, in accordance with Alaska Rule of
Appellate Procedure 602 and AS29.45.200(c).
2. An appeal of the assessor's denial of an application for exemption under this code must be
filed within 30 days of date of mailing of the assessor's determination under (G)(1) or (G)(2)
of this section denial.
Section 3: That section 3.35.050 Board of Equalization -Valuation Appeals of the Kodiak Island
Borough Code of Ordinances is amended to read as follows:
A. Membership - Qualification - Duties - Terms.
1. Members. The board of equalization for hearing valuation appeals shall be composed of five
persons, not assembly members, appointed by the assembly. At least two alternate members
shall be appointed.
11
0
Ordinance No. FY2024-09 Page 2 of 10
r
80
2. Qualifications. Members and alternate members should be appointed on the basis of their
[[
81
expertise in real and personal property appraisal, the real estate market, the personal property
82
market, and other fields related to their functions as board members. Each member shall be a
83
qualified voter of the borough and shall remain a resident of the borough while in office. Borough
84
employees may not be appointed to serve on the board of equalization.
85
by the fiRaRGe eF assessing depaitmeRtI3.
86
3. Duties. The board may determine equalizations on properties brought before the board by
87
appellants. It shall only hear appeals for relief from an alleged error in valuation on properties
88
before the board by an appellant.
89
4. Terms of Office. Upon confirmation, members and alternate members shall serve for three
90
years or until their successors are appointed and confirmed. Of the members initially appointed,
91
two shall serve three-year terms, two shall serve two-year terms, and one shall serve a one-year
92
term.
93
5. Hearing Dates. The board shall commence hearings on the first Monday in May, unless
94
otherwise changed by resolution. Hearings will continue from day to day as established by the
95
board and the borough clerk until all properly filed appeals have been heard.
96
B. Chairperson. The board annually shall elect a member to serve as its chairperson. The
97
chairperson may call meetings of the board, shall exercise such control over meetings as to
98
ensure the fair and orderly resolution of appeals, shall make rulings on the admissibility of
99
evidence, and shall conduct the proceedings of the board in conformity with this chapter. A vice-
100
chairperson shall also be selected to serve in the chairperson's absence. If both are absent, the
101
members present shall select a person to preside.
102
C. Appeals to the Board.
103
1. A person whose name appears on the assessment roll, or the authorized representative of
104
that person, may appeal to the board for relief for an alleged error in valuation not adjusted by the
105
assessor to the taxpayer's satisfaction. The authorized representative shall be named by the
106
property owner in writing to the assessor and board of equalization at the time of filing or no later
107
than three days in advance of hearing. The time requirement for providing a representative in
108
writing may be waived at the determination of the board during the hearing if good cause is shown
109
that may include, but not limited to, the following: stranded from Kodiak due to inclement weather,
110
serious medical condition, serious family emergency, or death in the family.
111
2. The appellant shall, within 30 calendar days after the date of mailing of notice of assessment,
112
submit to the assessor a written appeal specifying grounds for such appeal. The board shall
113
prescribe the form in which written notices of appeal shall be made. Otherwise, the right of appeal
114
ceases unless the board of equalization finds that the taxpayer was unable to comply within the
115
30-day appeal period and grants a hearing to the appellant.
116
3. The assessor shall notify the appellant by mail, and email if provided, of the time and place for
117
the hearing and assign a docket number of appeal.
118
4. If parties to whom notice was mailed as provided herein fail to appear, the board may proceed
119
with the hearing in their absence. All parties, their authorized representatives, and witnesses must
120
appear in person at the hearing.
Ordinance No. FY2024-09 Page 3 of 10
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
5. The assessor shall prepare for use by the board of equalization a summary of assessment (1
data relating to each assessment that is appealed. This summary shall be provided to the board U
and Fnade available to the appellant at least 10 calendar days before the hearing. Summary of
assessment data for late -filed appeals granted by the board will be provided as soon as
practicable.
6. A city in the borough may appeal an assessment to the borough board of equalization in the
same manner as a taxpayer. Within five days after receipt of the appeal, the assessor shall notify
the person whose property assessment is being appealed by the city.
7. A property owner who seeks to appeal the assessor's valuation, after the 30-day filing period
has closed, shall file a letter with the assessor stating the reasons why the property owner was
unable to comply with the 30-day appeal period. The deadline to file a late -file request is on April
15th of the current assessment year. Should April 15th fall on a Saturday or Sunday, late filers
shall have until 4:30 p.m. on the first Monday following to file their request.
On the next business day following the deadline to file a late -file request or as soon as is
practicable, the board shall consider each letter and shall only consider reasons the appellant
was unable to comply with the 30-day appeal period. It shall not consider evidence regarding
property valuation. The appellant may not make an oral presentation at the hearing. The
determination shall be based on the letter and supporting documents. The board shall interpret
the term "unable to comply" as meaning that a property owner must demonstrate compelling
reasons or circumstances which would prevent a reasonable person under the circumstances
from filing an appeal in a timely manner during the 30-day appeal period.
If the late -file request is granted, the property owner shall have five calendar days from the
decision of the board to file an appeal and submit to the assessor's office all documentary
evidence in their possession which they wish to be considered and which is relevant to the
resolution of the appeal. If the late -file request is denied, the assessor shall notify the property
owner of the board's decision in writing.
D. Quorum and Voting.
1. Quorum. A quorum shall consist of four members.
2. Voting. The granting of any appeal or part thereof shall require the concurring vote of at least
three board members. Any appeal or part thereof which is not granted by the board shall be
considered denied.
E. Hearings — Procedures.
1. Record. The clerk is the ex officio clerk of the board and shall prepare the board's minutes.
The clerk shall keep electronic recordings of the board's hearings per the borough retention
schedule. The board of equalization summary certification will constitute the board's minutes.
2. Counsel. All parties may be represented by counsel during hearings before the board. On
procedural matters, the borough attorney may offer legal counsel to the board in the course of its
proceedings. Upon the recommendation of the borough attorney, the board may retain legal
counsel from another attorney for a particular matter.
I
Ordinance No. FY2024-09
Page 4 of 10
r 160 3. Appeal Number. Every appeal shall be assigned an appeal number which, along with the name
l[ 161 of the appellant, shall be read into the record before hearings on the appeal may commence.
162 4. Burden of Proof. The burden of proof rests with the appellant, who must convince the board
163 by clear and convincing evidence that the assessment was unequal, excessive, improper, or
164 undervalued based on the facts stated in a written appeal or proven at the appeal hearing in
165 accordance with subsections (E)(5) and (7) of this section. If the valuation is found to be too low,
166 the board may raise the assessment. The borough shall make available to the appellant all
167 reasonably pertinent documents requested for presentation of the appeal, including but not limited
168 to documents presented or requested by the board of equalization for presentation of the appeal
169 in accordance with subsection (C)(5) of this section.
170 5. Rules of Evidence. Evidence shall only be presented by the appellant and the assessor or their
171 authorized representative. The board shall not be restricted by the formal rules of evidence;
172 however, the board ehairpersea may exclude evidence irrelevant to the issues appealed.
173 Hearsay evidence may be considered, provided there are adequate guarantees of its
174 trustworthiness and that it is more probative on the point for which it is offered than any other
175 evidence which the proponent can procure by reasonable efforts. The appellant must submit to
176 the assessor's office by April 15th all documentary evidence in their possession which they wish
177 to be considered and which is relevant to the resolution of the appeal. Should April 15th fall on a
178 Saturday or Sunday, appellants shall have until 4:30 p.m. on the first Monday following to submit
179 their evidence.
180 This evidence includes but is not limited to purchase and closing documents, appraisal reports,
181 brokers' opinion of value, engineers' reports, estimates to repair, rent rolls, leases, and income
182 and expense information. The board of equalization may in its discretion decline to accept
183 documents offered at the hearing which should have been provided by April 15th. In exercising
184 this discretion, the board shall consider the relevance and probative value of the documents which
185 are under consideration, accepting those documents which in all fairness are necessary to a fair
186 resolution of the appeal. Prior to the board meeting, the appellant and assessor may agree to an
187 extension of time for the production of evidence.
188 6. Order of Presentation. The order of presentation is as follows:
189 a. The appellant shall present evidence and argument not to exceed five minutes.
190 b. Following the appellant, the assessor shall present the borough's evidence and argument not
191 to exceed five minutes.
192 c. The appellant may make a rebuttal presentation directed solely to the issues raised by the
193 assessor not to exceed two minutes.
194 d. The assessor may address the rebuttal by the appellant not to exceed two minutes.
195 Each party shall be allowed a total of five minutes to present evidence and make oral argument.
196 The time limits allotted include presentations from either the appellant's or assessor's authorized
197 representatives, counsels, or witnesses. Additional time may be permitted by the board depending
[L 198 on the complexity of the case. The members of the board may ask questions, through the
199 chairperson, of either the appellant or the assessor, authorized representatives, counsels, or
200 witnesses at any time during the hearing. After both the appellant and the assessor have made
Ordinance No. FY2024-09 Page 5 of 10
201 their presentations, each may question the other through the chairperson. The chairperson may
202 end the questioning and call for a motion from the other members.
203 7. Witnesses, Exhibits and Other Evidence. The appellant and the assessor may offer the oral
204 testimony of witnesses and documentary evidence during the hearing. At the request of the
205 appellant, evidence submitted pursuant to subsection (E)(5) of this section relating to the
206 assessed valuation of property used in an income -producing commercial enterprise shall be
207 confidential. The assessor and the appellant may stipulate to facts to be presented to the board,
208 provided the assessor has received credible and reliable evidence to establish the facts.
209 The only exhibits that shall be admitted into the record at the hearing are those exhibits provided
210 pursuant to subsection (E)(5) of this section. However, at the hearing, parties may use
211 demonstrative or illustrative exhibits; provided, that all such exhibits are duplicates of exhibits or
212 information provided to the board pursuant to subsection (E)(5) of this section. Additionally,
213 witnesses may write on a board while orally testifying to illustrate their testimony. The limitation
214 on the use of exhibits in this section shall not preclude the parties from presenting oral testimony
215 at the hearing.
216 8. Decisions.
217 a. The assessor may recommend changes to the existing value during the hearing.
218 b. After the appellant and assessor have presented their cases, the hearing shall be closed by
219 the chairperson, and no further evidence shall be offered or considered in deliberations unless a
220 member of the board of equalization asks for additional information from either party. Both parties
221 shall be given an equal opportunity to respond to any such requests for additional information.
222 c. The board may decide the appeal after the presentations, or it may defer a decision no later
223 than 30 days after the hearing date. Final board action shall be taken by motions that set out
224 specific findings of fact at the meeting and shall not be reconsidered, amended, or rescinded by
225 the board. Only one motion may be on the floor at a time, and the board shall vote on the motions
226 until its findings are established. The vote must be taken and entered in the permanent record of
227 the proceedings. The motions available for the board are:
228 i. Motion to uphold the assessor's valuation
229 ii. Motion to reduce the assessment.
230 iii. Motion to increase the assessment.
231 iv. Motion to dismiss the appeal.
232 v. Motion to defer the decision.
233 vi. Or any other motion set out in Alaska Statutes and regulations governing board of equalization
234 appeals.
235 d. No later than 30 days following the hearing, the board shall render a written decision which
236 includes findings of fact based on evidence presented at the hearing clearly stating the grounds
Ordinance No. FY2024-09 Page 6 of 10
237
238
239
240
241
242
243
244
245
IRE
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
upon which the panel relied to reach its decision and advising all parties of their right to appeal
the decision to superior court.
9. Certification. The board shall certify its actions to the assessor within seven days following its
adjournment.
F. FurtherAppeals. Any appeal of a decision of the board of equalization on a valuation appeal
shall be made to the Superior Court, Third Judicial District, State of Alaska. No appeal of a board's
decision to the superior court may be taken unless the action is filed, and the borough attorney is
served with notice of such appeal within 30 days of the date of the mailing of fellow Rg the
board's written decision.
3.35.055 Board of Equalization -Exemption Appeals
A. The board of equalization for hearing appeals from the assessor's denial of exemptions
shall be the Assembly sitting as a board of equalization. The mayor will serve as the
chairperson. In the absence of the mayor, the deputy presiding officer shall serve as the
chairperson.
B. Exemption appeals to the Board of Equalization
1. A person whose name appears on the assessment roll, or the authorized representative
of that person, may appeal to the board from the assessor's determination denying an
exemption under KIBC 3.30.030(G). The authorized representative shall be named by the
property owner in writing to the assessor and board of equalization at the time of filing or
no later than three days in advance of hearing. The time requirement for providing a
representative in writing may be waived at the determination of the board during the
hearing if good cause is shown that may include, but not limited to, the following: stranded
from Kodiak due to inclement weather, serious medical condition, serious family
emergency, or death in the family.
2. The appellant shall, within 30 calendar days after the date of mailing of assessor's
determination, submit to the assessor a written appeal specifying grounds for such appeal.
The board shall prescribe the form in which written notices of appeal shall be made.
3. The assessor shall notify the appellant by mail, and email if provided, of the time and
place for the hearing and assign a number for the appeal.
4. If parties to whom notice was mailed as provided herein fail to appear, the board may
proceed with the hearing in their absence. All parties, their authorized representatives, and
witnesses must appear in person at the hearing.
5. The assessor shall prepare for use by the board of equalization a summary of
assessment and exemption data relating to each property exemption that is appealed. This
summary shall be provided to the board and the appellant at least 10 calendar days before
the hearing.
Ordinance No. FY2024-09
Page 7 of 10
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
C. Quorum and Voting for the Assembly siting as a board of equalization.
1. Quorum. A quorum shall consist of four members.
2. Voting. The granting of any appeal or part thereof shall require the concurring vote of
at least four board members. Any appeal or part thereof which is not granted by the board
shall be considered denied. The chairperson may take part in the discussion. The
chairperson may not vote except in the case where only six members are present and there
is a three/three tie vote, provided, however, that if the deputy presiding officer serves as
the chairperson, the deputy presiding officer shall vote in the same manner as any other
board member.
D. Hearings — Procedures for the Assembly sitting as a board of equalization
1. Record. The clerk is the ex officio clerk of the board and shall prepare the board's
minutes. The clerk shall keep electronic recordings of the board's hearings per the
borough retention schedule. The board of equalization summary certification will
constitute the board's minutes.
2. Counsel. All parties may be represented by counsel during hearings before the board.
On procedural matters, the borough attorney may offer legal counsel to the board in the
course of its proceedings. Upon the recommendation of the borough attorney, the board
may retain legal counsel from another attorney for a particular matter.
3. Appeal Number. Every appeal shall be assigned an appeal number which, along with
the name of the appellant, shall be read into the record before hearings on the appeal may
commence.
4. Burden of Proof. The burden of proof rests with the appellant.
5. Rules of Evidence. Evidence shall only be presented by the appellant and the assessor
or their authorized representative. The board shall not be restricted by the formal rules of
evidence; however, the board may exclude evidence irrelevant to the issues appealed.
Hearsay evidence may be considered, provided there are adequate guarantees of its
trustworthiness and that it is more probative on the point for which it is offered than any
other evidence which the proponent can procure by reasonable efforts. The appellant must
submit to the assessor's office, within ten (10) days of filing their request for appeal, all
documentary evidence in their possession which they wish to be considered and which is
relevant to the resolution of the appeal.
The board of equalization may in its discretion decline to accept documents offered at the
hearing which should have been provided by the deadline in this subsection. In exercising
this discretion, the board shall consider the relevance and probative value of the
documents which are under consideration, accepting those documents which in all
fairness are necessary to a fair resolution of the appeal. Prior to the board meeting, the
appellant and assessor may agree to an extension of time for the production of evidence.
6. Order of Presentation. The order of presentation is as follows:
I
Ordinance No. FY2024-09 Page 8 of 10
312 a. The appellant shall present evidence and argument not to exceed five minutes
313 b. Following the appellant, the assessor shall present the borough's evidence and
314 argument not to exceed five minutes.
315 c. The appellant may make a rebuttal presentation directed solely to the issues raised by
316 the assessor not to exceed two minutes.
317 d. The assessor may address the rebuttal by the appellant not to exceed two minutes.
318 Each party shall be allowed a total of five minutes to present evidence and make oral
319 argument. The time limits allotted include presentations from either the appellant's or
320 assessor's authorized representatives, counsels, or witnesses. Additional time may be
321 permitted by the board depending on the complexity of the case. The members of the board
322 may ask questions, through the chairperson, of either the appellant or the assessor,
323 authorized representatives, counsels, or witnesses at any time during the hearing. After
324 both the appellant and the assessor have made their presentations, each may question the
325 other through the chairperson. The chairperson may end the questioning and call for a
326 motion from the other members.
327 7. Witnesses, Exhibits and Other Evidence. The appellant and the assessor may offer the
328 oral testimony of witnesses and documentary evidence during the hearing. At the request
329 of the appellant, evidence submitted pursuant to subsection (D)(5) of this section relating
330 proprietary financial records, shall be confidential. The assessor and the appellant may
331 stipulate to facts to be presented to the board, provided the assessor has received credible
332 and reliable evidence to establish the facts.
333 The only exhibits that shall be admitted into the record at the hearing are those exhibits
334 provided pursuant to subsection (D)(5) of this section. However, at the hearing, parties
335 may use demonstrative or illustrative exhibits; provided, that all such exhibits are
336 duplicates of exhibits or information provided to the board pursuant to subsection (D)(5) of
337 this section. Additionally, witnesses may write on a board while orally testifying to
338 illustrate their testimony. The limitation on the use of exhibits in this section shall not
339 preclude the parties from presenting oral testimony at the hearing.
340 8. Decisions.
341 a. The assessor may recommend changes to the assessor's determination during the
342 hearing.
343 b. After the appellant and assessor have presented their cases, the hearing shall be closed
344 by the chairperson, and no further evidence shall be offered or considered in deliberations
345 unless a member of the board of equalization asks for additional information from either
346 party. Both parties shall be given an equal opportunity to respond to any such requests
347 for additional information.
348 c. The board may decide the appeal after the presentations, or it may defer a decision no
349 later than 30 days after the hearing date. Final board action shall be taken by motions that
350 set out specific findings of fact at the meeting and shall not be reconsidered, amended, or
351 rescinded by the board. Only one motion may be on the floor at a time, and the board shall
Ordinance No. FY2024-09 Page 9 of 10
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
vote on the motions until its findings are established. The vote must be taken and entered
in the permanent record of the proceedings. The motions available for the board are:
i. Motion to uphold the assessor's determination.
ii. Motion to reverse the assessor's determination.
iii. Motion to modify the assessor's determination.
iv. Motion to dismiss the appeal.
v. Motion to defer the decision.
vi. Or any other motion set out in Alaska Statutes and regulations governing board of
equalization appeals.
d. No later than 30 days following the hearing, the board shall render a written decision
which includes findings of fact based on evidence presented at the hearing clearly stating
the grounds upon which the panel relied to reach its decision and advising all parties of
their right to appeal the decision to superior court.
E. Further Appeals. Any appeal of a decision of the beard assembly sitting as the board of
equalization on an exemption appeal shall be made to the Superior Court, Third Judicial
District, State of Alaska. No appeal of a board's decision to the superior court may be taken unless
the action is filed, and the borough attorney is served with notice of such appeal within 30 days
of the date of the mailing of following the board's written decision.
Effective Date: This ordinance takes effect upon adoption. (Note: KIBC 2.30.070 states an
ordinance takes effect upon adoption or at a later date specified in the ordinance.)
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SECOND DAY OF NOVEMBER, 2023
KODIAK ISLAND BOROUGH
Scze:��/r'1
Scott Arndt, Borough Mayor
Introduced by: Mayor and Assembly
First reading: 10/19/2023
Second reading/public hearing: 11/02/2023
ATTEST:
Nova M. Javier, MMC, 11orough Clerk
VOTES:
Ayes: Ames, Griffin, LeDoux, Sharratt, Smiley, Turner, & Whiteside
Noes: None
Ordinance No. FY2024-09 Page 10 of 10