Anchorage's new-home tax break would reach pricier houses under a revision

Anchorage's proposed property tax break for first-time buyers of newly built homes would apply to somewhat pricier houses under a revised version before the Assembly on Tuesday.

The original ordinance cut off the break at the average assessed value of a single-family home, about $497,000 this year, meaning a home priced even slightly above the average got nothing. The revision raises that ceiling to 120 percent, roughly $596,000, to eliminate what the mayor's office called a "cliff." The exemption still only covers value up to the average; anything above that is taxable.

The rest of the measure is unchanged. A qualifying new home, owner-occupied by a first-time buyer, would be exempt from city and school property taxes for 10 years. Short-term rentals don't qualify. Mayor Suzanne LaFrance introduced it under her 10,000 Homes in Ten Years strategy, and the administration's analysis projects it would be roughly revenue-neutral.

Testimony filed earlier opposed the break as a subsidy to builders that shifts the tax burden onto existing property owners.

The public hearing is Tuesday.