The Kenai Peninsula Borough Assembly is considering an ordinance that would increase the amount of money residents can exempt from property taxes.

Ordinance 2025-16 would increase an exemption for residential property taxes from $50,000 to $75,000. It was introduced by assembly member James Baisden during the assembly’s July 8 meeting.

If approved by the assembly, the proposed ordinance would be further subject to voter approval in October. The ordinance notes that in 2022 the Alaska State Legislature passed House Bill 411, which increased the optional property tax exemption for primary residential properties from $50,000 to $75,000. If successful, Ordinance 2025-16 would amend borough code to increase the residential property tax exemption to reflect HB 411.

The assembly will hold a hearing on the proposed ordinance Aug. 5. The regular Kenai Peninsula Borough election is scheduled for Oct. 7. If approved by the assembly and enacted by a majority of eligible borough voters, the property tax exemption increase would become effective Jan. 1, 2026, for fiscal year 2027.

The borough offers various property tax exemptions and deferments for residents. Exemptions are available on “a single parcel of real property owned and occupied as the primary residence and permanent place of abode by a resident for at least 185 days per year,” according to the borough website. The applicant must be the owner of record as of Jan. 1 of the year applied, and exemptions are automatically removed when the assessing department receives notice of a change of address outside the borough.

Other property tax exemptions currently in effect within the borough include the senior citizen exemption, which provides up to $300,000 in assessed value exemption for the primary residence and residential land use of qualifying seniors; the disabled veteran exemption, available for residential real property owned and occupied by a resident who is a disabled veteran with a service-connected disability rated at 50% or more by the Veterans Administration; and the volunteer firefighter and EMS provider exemption, a $10,000 exemption available annually to active volunteers of a recognized first responder service, registered fire department, or ambulance service in the borough, who hold an EMS or firefighting certificate approved by the State of Alaska.

Reach reporter Chloe Pleznac at chloe.pleznac@homernews.com.