How Are Property Taxes Calculated?
Property Taxes levied in Anchorage are approved by the Assembly.
A property tax is an Ad Valorem Tax, which means it is based on the value of the taxable property. Taxpayers pay a flat rate per dollar value of taxable property that they own. The flat rate, called a mill levy or mill rate, is $1.00 of tax per $1,000 of assessed value.
The amount of property taxes to be collected each year is based on two variables:
- Amount of taxes to pay for approved spending; and
- Property’s assessed valuation.
A separate mill levy (or mill rate) is calculated for each Service Area (SA), Anchorage Metropolitan Police Service Area, Anchorage Roads and Drainage Service Area (ARDSA), Girdwood Valley Service Area and Glen Alps Limited Road Service Area (LRSA). To calculate the mill levy, divide the amount of taxes required to pay for a SA’s budget by the assessed valuation of property in that same service area. Then multiply the answer by 1,000 to get the mill levy:
|Taxes to be Collected in SA||x 1,000||= MIll Levy|
|SA's Assessed Valuation|
For example, you live in the Police Service Area and the Police Department’s budget requires $84,500,000 in property taxes. The assessed valuation for property in the Police Service Area is $31,500,000,000. The mill levy calculation for the Police Service Area is:
|$84,500,000||= 0.00268||x 1000||= 2.68||Mill Levy|
Nearly all property is in multiple service areas. The mill rate in each service area is added together and the total is reflected on a property tax bill. A Taxing District incorporates all the service areas for which a property is being taxed. To see the taxing district maps click here: Anchorage Bowl / Eagle River and Chugiak.
Amount of property taxes to MOA and ASD - (2001 -2011)
Tax rates - Municipality and Anchorage School District - (2001- 2011)
Amount of 2011 Property Taxes Per $100,000 Assessed Valuation (Tax district 1)
Property Taxes and Anchorage School District
As prescribed in the Charter, education is an Areawide responsibility, which means all property owners pay taxes to support education. The same two variables determine the school district’s mill levy: amount of property taxes needed to support spending and assessed value of property.
In recent years the split of property taxes between the Municipality and School District is almost even.
To calculate your property taxes enter your address and select "Property Info" on the My Neighborhood page.
To learn how to read your Tax Bill, click here.