Kenai voters decide Nov. 3 whether to ratify a $75,000 home tax exemption

Kenai homeowners could take up to $326.25 off their city property tax bill each year if voters approve Proposition 2026-C on Nov. 3. The measure would exempt the first $75,000 of assessed value on a home its owner actually lives in.

The city put the cost of that at $433,885 a year in property tax revenue it would no longer collect. Kenai's levy is 4.35 mills, or $4.35 for every $1,000 of assessed value, which is where the $326.25 comes from.

About 1,421 owners would qualify. Roughly 600 of them are seniors or disabled veterans who already receive a mandatory $150,000 exemption, so for those households the new one stacks on top, sheltering $225,000 of value in all.

Eligibility runs through the borough. An owner has to receive the Kenai Peninsula Borough's residential exemption first, and the borough assessor's determination decides who qualifies for the city's.

The council enacted the ordinance Sept. 2, sponsored by Mayor Knackstedt and Council Member Kisena, but it takes effect only if voters ratify it. Its stated purpose is to encourage people to own the homes they live in. If it passes, it applies starting Jan. 1, 2027, for the 2028 fiscal year. Voter registration closes Oct. 4.