Average home values in the Mat-Su Borough have increased 7.41 percent since last year. And land is significantly undervalued, on average, about 60 percent less than what it should be, according to Mat-Su Borough Finance Director Cheyenne Heindel.
The Borough is evaluating all Borough properties, a task that is expected to take several years. Heindel says they’ve completed the far side of the Matanuska River to Palmer. This summer she expects they will continue their work in the core area, Sutton, and Chickaloon.
As the assessments are complete, land and home values will increase appropriately.
“When we’re seeing property sales come through, they’re anywhere from two to three times more than what the value we have assessed them at.”
Heindel says the updated valuations are required.
“Our mandate from the State of Alaska, state statute, requires us to value at fair market value or as close to as we can get without going over.”
Heindel says everyone will see their land and home values increase. But as they evaluate Borough properties in sections, they may update the valuations based on those actual assessments.
“Sometimes what’s happening in sales up north might be different than what’s happening with sales here in the core area. There may not be the same disparity in values in some areas that there are in others.”
Heindel stresses that increased valuations may not equate to an increase in taxes. The Assembly will ultimately decide the tax rates.
“We don’t want people to think just because there is a 7.41 percent increase in single family residence, that you’re going to see that same increase in your tax bill. That is not the goal of this budget cycle. The Borough Manager and I are looking at a budget that minimizes the increase in taxes, which would equate to a lowering of the mill rate.”
Assessment notices are going out this week. The appeal period runs from January 29 through February 27. Any landowner may contact the Borough to appeal their property valuations. Heindel recommends calling the Borough Assessment Division at 907.861.8642 to discuss it directly with the assessor so they can be sure the valuation is correct.
