Homer Alaska - Opinion

I propose two amendments to the Kenai Peninsula Borough's current property tax code: a senior citizen tax exemption and property improvement exemption.

* Senior Citizen Property Tax Exemption: Senior citizens' assessed values shall be based on assessed values of 1999 (or date of acquisition if purchased after 1999), and assessed values shall not increase until such time the property is sold or exchanged.

Senior citizens built this state. It is the pioneering spirit of Alaska's senior citizens that afforded you and me the great state we enjoy. The roads, schools, hospitals and so many other critical pieces of our infrastructure were carved out of this harsh land by a rugged and brave group of people.

The least we can do is to assure our seniors and pioneers that we are not going to tax them out of their homes. They should not be forced to sell their property for an inability to pay the property tax due to increases in market forces around them.

Seniors from around the state and elsewhere in the country are looking to retire to the Kenai Peninsula and should be enticed to move here. Let the peninsula be the home to a high-income, low-impact group that brings with it experience, income and Medicare dollars to help support our hospitals. (Aren't the seniors part of the reason we spent $20 million in Homer on our recently expanded South Peninsula Hospital?)

Seniors put the least pressure on our local infrastructure and services. Let's encourage them to make the Kenai Peninsula their retirement destination.

* Property Improvement Tax Exemption: Owners of real property that make certain improvements shall be rewarded with a special one year up to $50,000 tax exemption. This shall be a non-reoccurring, one-year exemption upon completing items of improvement.

Why is it that we reward those who allow their property to become dilapidated through lower taxes? Let's offer a one-time tax exemption to owners for improving their property. While this exemption may not entirely pay for the cost of improvements, it is a start. Not to mention that we are sending a message that improving your property is a good thing. You will not be wrapped on the knuckles with the assessor's yardstick; rather, you will receive a reward.

The requirements of improvements will have to be hammered out in detail, but I submit to you that there is undoubtedly a community or district somewhere in the country doing this very thing. Rather than reinvent the wheel, we can look to other areas for a model, then modify it to fit our needs.

How will this be enforced, you ask? Through the assessor's office is the answer. There will be a simple form to complete with criteria check boxes. Applicants will need to provide before and after photos and bear the burden of proof, subject to random audits. The assessors are out often enough that surely they can perform spot checking with little or no additional cost. In theory they are evaluating property with boots on the ground already.

"Where will the money come from?" is a logical next question.

Until recently, the borough mayor was paying his personal staff record high salaries — this in an economy that is being touted as the worst in a generation on the national level. How about the hundreds of thousands of dollars spent on the proposed Homer City Hall and Town Square project — to which the voters said "no, thank you"? What about the $100,000-plus spent to hire out-of-town experts to reconstruct the Homer Comprehensive Plan?

I submit to you that we also have the money to reward our senior population. While honoring the pioneers, we also will attract new retirees to the area, who will bring with them their money.

As for the property improvement exemption, everyone will benefit from an improved neighborhood, community and borough. In the long run, we will be bolstering higher values for the future. A more stable market brings more consistent tax revenue.

Join me in bringing tax relief and community reinvestment to fruition. Contact your assembly members today. Let them know you are in support of tax relief and community reinvestment.

Chris Story is a lifelong Alaska, born and raised in Homer. He also is the owner and broker of Story Real Estate and host of Radio Realty, a real estate forum promoting home ownership and prosperity. It airs on KPEN 102 FM every Wednesday at 12:30 p.m.