Kenai voters approve $75,000 home tax exemption by 1,552 to 208, canvass shows

Kenai voters approved a $75,000 residential property tax exemption by 1,552 votes to 208 in the Nov. 3 election, according to canvass results the City Council is scheduled to certify Wednesday, Nov. 18. The measure drew 88% of the vote.

The exemption covers the first $75,000 of assessed value on a home the owner occupies as a primary residence. Owners must first apply for and receive the Kenai Peninsula Borough's residential exemption to qualify, according to the ballot materials. It takes effect Jan. 1, 2027, for fiscal year 2028. The materials put the largest annual savings at about $326 per owner.

The Sept. 2 council minutes estimated 1,421 property owners could qualify. By that estimate, the city would collect about $434,000 less in property tax each year at the current rate of 4.35 mills, or $435 a year for every $100,000 of taxable value.

Voters also filled two council seats. Alexander Douthit, who served on the council from 2022 to 2025, led with 933 votes. Phil Daniel, a sitting council member first elected in 2023, finished second with 805. Tim Navarre received 739, and write-ins drew 24. Both terms run three years, ending in November 2029.

Turnout reached 1,820 of the city's 6,516 registered voters, or about 28%. The city canvass board received 388 absentee, questioned and personal needs ballots. It rejected 23 because the voters were not registered, registered too late or were registered outside the city, and counted the remaining 365.

The tax question began with Mayor Henry Knackstedt, who in August moved to have the city manager draft an exemption. At an Aug. 5 council meeting, he also called for a work session on the fiscal effects. "The city is in pretty good shape, but we're also looking at a new fire station or police station on the horizon, and that is going to require some bonding," he said.

Knackstedt and Council Member Sovala Kisena sponsored the ordinance, and the council sent the question to voters Sept. 2. This was also the first city election held on the same day as state and borough elections, after city voters approved that change.

The council agenda calls for swearing in the winners Wednesday. Their terms begin Monday, Nov. 23.