Dillingham council votes Thursday on exempting Tribal land from property tax

Land owned by federally recognized Tribes in Dillingham would come off the city property tax roll under an ordinance the Dillingham City Council takes up Thursday, October 1. No record before the council says how much tax money the city would give up, or how much Tribal land is being taxed now: city finance staff told a committee last year that the city had granted such exemptions in the past without clear legal authority.

The council holds a public hearing tonight and then votes on adoption. The exemption would cover land owned by any Tribe on the federal government's list of recognized Tribes, and would take effect on adoption. The ordinance is No. 2026-14.

Improvements on Tribal land used primarily for commercial or profit-generating purposes would stay taxable. Mixed-use property would be split, with only the qualifying portion exempt. The council's findings say Tribes provide governmental, cultural, educational, health and other public services that benefit city residents. Commercial improvements should stay taxable "to ensure equitable treatment of commercial property owners," the findings say.

Neither the ordinance as introduced nor the copy in the October 1 council packet carries a fiscal note. The records do not estimate how many parcels qualify, how much assessed value would leave the roll or what revenue the city would forgo.

City committees have worked the question since last year. Finance Director Anita Fuller told the Finance and Budget Committee in October 2025 that fee-simple property (land owned outright) remained taxable under existing code even when Tribally owned. Historically, the city had granted exemptions without clear legal authority, the minutes say, and staff recommended legal review before any code change. In December, the Code Review Committee discussed commercial-use limits, the difference between tribal governments and Alaska Native corporations, and split taxation of land and improvements, and respecting tribal sovereignty "while protecting the City's tax base," its minutes say.

City Manager Jack Savo Jr. reported that the language came from work with the Curyung Tribe. "Worked closely with Curyung Tribe representative Keggie Tubbs to develop language pertaining to tribal fee simple exemption," Savo wrote in his June to July report. The council introduced the ordinance unanimously September 3; the minutes record discussion of recognizing tribal governments and confirmation that commercially used property would remain taxable.

The records contain no statements on the measure from the Curyung Tribal Council, the city assessor or other property owners.

Residents can still testify at tonight's hearing. The city's hearing notice says 7 p.m., but the second amended agenda sets the meeting for 7:30 p.m., a half hour later than usual.