§ 12.15.060. Payment.

A.

Installments. Any taxpayer may pay the property tax for the year in two installments of equal amounts except when the property tax for the year amounts to $10.00 or less.

1.

Any installment shall become delinquent on the first business day following the tax installment due date.

2.

Tax bills shall be mailed to owners of record, lessees or persons controlling real property at least 30 days prior to the date taxes owed become due.

B.

Property subject to pending appeal. If a proper appeal had been filed with the board of equalization, and if the assessor's administrative review or the board has not decided the appeal on or before the date established as the due date for the first or second installment under the provisions of subsection A of this section, payment shall nevertheless be made on the basis of the amount billed, except where:

1.

With respect to property zoned for residential use (as provided in sections 21.40.030 through 21.40.120) the assessed value has increased by $50,000.00 or more from the previous year; or

2.

With respect to property zoned for commercial use (as provided in sections 21.40.130 through 21.40.250) the assessed value has increased by $250,000.00 or more from the previous year; and

3.

Municipal assessment records do not reflect that new construction or remodeling has occurred on the property.

If the conditions set forth in subsection 1 or 2 and 3 of this subsection are present, the property owner shall make a minimum payment for each installment based on the assessed value for the previous year and the mill rate for the current year. If, following resolution of an appeal, it is determined that additional tax is owed, the balance, including appropriate interest, shall be paid with the second half installment or, if the appeal has not been resolved by the due date of the second half installment, within ten days of notice of resolution of the appeal. Failure to make a timely minimum payment shall result in the application of both penalty and interest on the amount of the minimum payment due. Failure to make a timely payment for any balance due upon resolution of the appeal shall result in the application of both penalty and interest on the balance.

C.

Delinquency.

1.

If an installment is not paid in full before the due date, the unpaid balance of that installment becomes delinquent and penalty, interest and costs accrue as follows:

a.

Penalty. A penalty of ten percent on the unpaid balance of a tax installment which was due shall be added to the delinquent tax.

b.

Accrual of interest. In addition to the penalty set out in subsection C.1.a of this section, interest shall be charged on the unpaid balance of delinquent taxes. No interest shall be applied until the first day of the month following the due date of the original tax bill. When interest is to be applied, it shall be calculated on a monthly basis. In addition, interest shall be collected for the period of time which is the portion of the month in which the tax bill was due and delinquent.

c.

Interest rate. The interest rate shall be determined each year to be a rate equivalent to the prime rate as of April 15, plus two percentage points. If the prime rate is not published as of April 15 of any year, the interest rate shall be determined to be a rate equivalent to the prime rate as of the first business day following April 15 plus two percentage points. The interest rate, as determined pursuant to this subsection, shall be effective May 1 of each year and continue in force for one year. Notwithstanding the provisions of this subsection, the interest rate for any year shall not exceed the maximum allowed under AS 29.45.250.

d.

Costs. In addition to the penalties and interest provided for this subsection, costs associated with collection of current or delinquent taxes, interest or penalties shall be charged.

2.

Following each due date of taxes, seven calendar days shall elapse before any penalty is added to the tax. At the expiration of the seven-calendar-day grace period, the penalty will be added.

3.

All interest charged on tax payments shall be applied only on the principal, not on penalties or costs, and shall run from the date when the installment was due to the time it is paid.

D.

Tax under $20.00. No person shall be billed for payment of municipal property tax if that person's current annual property tax bill totals less than $20.00.

E.

Application of payments. Any payment received shall be applied first to delinquent taxes in the order that the taxes became delinquent and in the following order for each delinquent tax:

a.

Costs.

b.

Penalty.

c.

Interest.

d.

Principal tax.

(GAAB 10.05.035, 10.05.070; AO No. 85-182, 1-1-86; AO No. 86-107(S), 1-1-86; AO No. 88-158; AO No. 98-165(S), § 1, 5-1-99)

Editor's note

AO No. 86-107(S), subsection B above, is effective January 1, 1987. AO No. 88-158, section 5, shall become effective as follows: interest rate determination, April 15, 1989; penalty and interest rate effective date, May 1, 1989.