§ 12.15.065. Tax penalty waiver.

A.

Purpose. The purpose of this section is to authorize and establish a process to waive the late penalty if delinquency is due to catastrophic occurrence.

B.

Definitions. The following words, when used in this section, shall have the meanings ascribed to them below:

Immediate family shall mean any family member listed in AMC section 3.30.005.

Mail carrier shall mean the U.S. postal service or a nationally recognized express mail carrier.

Primary residence shall mean a dwelling that is owned and occupied as the taxpayer's primary residence and permanent place of abode for at least 185 days prior to January 1 of the current year. Residency determination shall be consistent with the State of Alaska's Permanent Fund Dividend standards under AS 43.23.005(a).

Property tax due date shall mean the first or second real property tax due dates established by assembly resolution for the current tax year (generally June 15 and August 15).

Serious illness shall mean a medical emergency or significant medical condition that required hospitalization or other medical treatment causing the taxpayer to be incapacitated and not reasonably able to ensure timely and full payment of their property tax bill by the property tax due date or within the seven calendar day grace period.

Taxpayer shall mean any person who is a legal owner of a residential parcel, which serves as their primary residence, or a person lawfully appointed to represent the taxpayer.

Timely payment shall mean payment paid in full by the property tax due date and not subject to delinquent penalty, interest, and costs set out in AMC subsection 12.15.060C.

Treasurer shall mean the Municipal Treasurer, or designee.

C.

Criteria. For an application for waiver to be considered, a taxpayer acting in good faith, shall:

1.

Have a five-year history of timely payment of property tax due on primary residence(s); and

2.

Have been subject to one of the following documented catastrophic circumstances:

a.

Death of taxpayer between real property tax billing date and property tax due date. Factors to consider shall include:

i.

Date of death, evidenced by a death certificate.

b.

Serious illness of taxpayer occurring within seven calendar days before or after the property tax due date. Factors to consider shall include:

i.

Dates, duration, severity, and nature of serious illness; and

ii.

Explanation of how the serious illness prevented compliance.

c.

Death or serious illness of taxpayer's immediate family occurring within seven calendar days before or after the property tax due date. Factors to consider shall include:

i.

Relationship of parties involved;

ii.

Date of death or dates, duration, severity and nature of serious illness; and

iii.

Explanation of how the event prevented compliance.

d.

Destruction or unavailability of taxpayer records by a catastrophic event occurring within seven calendar days before or after the property tax due date. Factors to consider shall include:

i.

Dates and description of the catastrophic event;

ii.

Explanation of how the destruction or unavailability of records prevented compliance; and

iii.

Explanation of all other means explored to secure needed tax information.

e.

Delivery failure, loss or destruction by the mail carrier, or theft of mail associated with taxpayer's attempt to make full and timely payment of their real property taxes. Factors to consider shall include:

i.

Dates and description of the delivery failure, loss, destruction or theft of mail;

ii.

Formal written statement of acknowledgement or respon-
sibility from mail carrier as to the circumstances stated by taxpayer; and

iii.

Dates and description of timeframe during which taxpayer first became aware of an unusual delay in the processing of their tax payment which was explained by mail carrier error or mail theft.

3.

Have not been approved for a waiver for any of the five preceding tax years.

D.

Application for waiver.

1.

An application for waiver shall be submitted in writing by the taxpayer on a form provided by the treasurer within 60 days of property tax due date.

2.

The application shall consist of a form provided by the treasurer and shall include a signed affidavit and any supporting documentation necessary to explain and show how the taxpayer's circumstances prevented them from making timely payment.

E.

Determination and appeal.

1.

The treasurer shall send a written determination letter to the taxpayer indicating approval or denial within 30 days of receipt of the application.

2.

The determination letter shall include information concerning the taxpayer's right to appeal the treasurer's decision to the chief fiscal officer.

3.

An appeal shall be made in writing within 15 days of the date cited on the treasurer's determination letter.

4.

The chief fiscal officer's decision shall be final and made within 30 days of the taxpayer's appeal filing date. The treasurer shall communicate to the taxpayer the final decision of the chief fiscal officer.

F.

Payment due. A waiver is conditioned upon payment of the delinquent tax balance owed by the taxpayer within 30 days of the favorable determination date. If the taxpayer's application for waiver is approved, no additional interest shall accrue during this 30 day window. If taxpayer's property taxes are not paid within 30 days of the favorable determination date, the waiver is revoked and all penalties, interest, and fees are reapplied.

(AO No. 2017-106 , § 1, 6-15-17)