Delinquent Property Taxes in Alaska: The Borough or City Forecloses in Court, and the Municipality Itself Takes Title
Reviewed by DocDraft Legal Team · Alaska · Last updated October 21, 2026
Nobody at the State of Alaska sends you a property tax bill. A borough, a unified municipality or a city levies the tax, and levying it is optional: a borough or unified municipality may levy one, a home rule or first class city may, and a second class city may only by referendum (AS 29.45.010, AS 29.45.590). The only property tax the state itself levies is a 20 mill tax on oil and gas exploration, production and pipeline transportation property (AS 43.56.010). Delinquent property taxes are taxes an owner did not pay by the date the taxing body set, after which penalty and interest are added and the property can be taken to satisfy them. Local control reaches the deadline too. The rate of levy, the date of equalization and the date when taxes become delinquent are fixed by resolution, and by July 1 the tax collector mails statements setting out the levy, the payable and delinquent dates, and the penalties and interest (AS 29.45.240). Statute fixes only the ceilings: penalty up to 20 percent of the tax due, and interest up to 15 percent a year on unpaid taxes from the due date (AS 29.45.250). Collection then becomes a court case rather than an auction. The municipality enforces delinquent real property tax liens by annual foreclosure (AS 29.45.320), petitions the superior court on a published list (AS 29.45.330), and foreclosed properties are transferred to the municipality itself for the lien amount (AS 29.45.390). Redemption runs at least one year from that transfer (AS 29.45.400). Attorney review is available through DocDraft.
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Who levies the property tax on an Alaska home, and who fixes the delinquency date?
A borough, unified municipality or city, never the state. A unified municipality or borough may levy a property tax, a home rule or first class city may levy one, and a second class city may only by referendum (AS 29.45.010, AS 29.45.590). The rate of levy and the date taxes become delinquent are fixed by resolution (AS 29.45.240).
What happens to an Alaska home once the property taxes stay unpaid?
The municipality enforces delinquent real property tax liens by annual foreclosure unless an ordinance provides otherwise (AS 29.45.320). It presents a petition for judgment and a certified foreclosure list to the superior court (AS 29.45.330), and the foreclosed properties are then transferred to the municipality for the lien amount (AS 29.45.390).
How long does an Alaska owner have to redeem after a foreclosure judgment?
Properties transferred to the municipality are held by the municipality for at least one year, and during the redemption period a party having an interest in the property may redeem it (AS 29.45.400). The right of redemption then expires 30 days after the date of the first notice publication (AS 29.45.440).
How much penalty and interest can be added to delinquent Alaska property taxes?
Statute sets ceilings and each municipality sets its own figures by resolution. A penalty not to exceed 20 percent of the tax due may be added to all delinquent taxes, and interest not to exceed 15 percent a year accrues upon all unpaid taxes, not including penalty, from the due date until paid in full (AS 29.45.250).
How Alaska collects a tax the state never levied
Delinquent property taxes are taxes an owner failed to pay by the date the taxing body set, after which penalty and interest are added and the property can be taken to satisfy them. In Alaska that taxing body is a borough, unified municipality or city, and it fixes the rate of levy and the delinquency date itself by resolution (AS 29.45.010, AS 29.45.240). Enforcement is litigation, not bidding. One general foreclosure proceeding in rem runs against every property on the published list (AS 29.45.360), judgment is several against each lot (AS 29.45.380), and the parcels transfer to the municipality for the lien amount (AS 29.45.390). The owner keeps the right to possession through the redemption period (AS 29.45.430), and a record owner may still repurchase within 10 years afterward (AS 29.45.470).
A cabin outside the cities in the Kenai Peninsula Borough, lost on a notice rather than on an anniversary
Imagine a cabin in the Kenai Peninsula Borough outside all cities, carrying roughly 5,900 dollars of borough taxes from the previous year. The borough adds penalty and interest at its own resolution figures, within the statutory ceilings of 20 percent penalty and 15 percent a year (AS 29.45.250), lists the parcel and petitions the superior court (AS 29.45.330). Judgment transfers the parcel to the borough for the lien amount (AS 29.45.390), and the owner stays in the cabin, because foreclosure does not affect the right to possession during redemption (AS 29.45.430). Counting a clean twelve months is the mistake. The clerk publishes the expiration notice, and the right of redemption ends 30 days after that first publication (AS 29.45.440). Whether a payment landed in time is for the borough clerk's record.
Relevant Laws
AS 29.45.010 (who may levy a property tax) and AS 29.45.090 (the three percent cap)
Section 29.45.010 provides that a unified municipality may levy a property tax and that a borough may levy an areawide tax for areawide functions, a nonareawide tax for functions limited to the area outside cities, or a tax in a service area; a home rule or first class city may levy one subject to AS 29.45.550 to 29.45.560, and a second class city subject to AS 29.45.590. Section 29.45.090 provides that a municipality may not, during a year, levy an ad valorem tax for any purpose in excess of three percent of the assessed value of property in the municipality.
AS 29.45.240 (the levy, and the locally fixed delinquency date)
Provides that the power to assess, levy and collect a property tax is exercised by ordinance, and that the rate of levy, the date of equalization and the date when taxes become delinquent shall be fixed by resolution. It also requires the municipality to determine the rate of levy annually before June 15, and requires the tax collector by July 1 to mail tax statements setting out the levy, the dates when taxes are payable and delinquent, and the penalties and interest.
AS 29.45.250 (ceilings on penalty and interest)
Provides that a penalty not to exceed 20 percent of the tax due may be added to all delinquent taxes, and that interest not to exceed 15 percent a year shall accrue upon all unpaid taxes, not including penalty, from the due date until paid in full. The penalty may be imposed on a formula that increases as the delinquency lengthens. Where a taxpayer is given the right to pay in two installments, penalty and interest on an unpaid installment accrue from the date that installment becomes due.
AS 29.45.300 (the tax lien) and AS 29.45.320 (annual foreclosure)
Section 29.45.300 provides that property taxes, together with penalty and interest, are a lien upon the property assessed, and that the lien is prior and paramount to all other liens or encumbrances against the property. Section 29.45.320 provides that the municipality shall enforce delinquent real property tax liens by annual foreclosure, unless otherwise provided by ordinance, and allows a personal action in the district or superior court in the cases it names.
AS 29.45.330 (the foreclosure list, publication and mailed notice)
Requires the municipality annually to present a petition for judgment and a certified copy of the foreclosure list for the previous year's delinquent taxes in the superior court, to publish the list for four consecutive weeks in a newspaper of general circulation or post it at three public places for at least 30 days, and within 10 days after first publication or posting to mail the last known owner a notice describing the property and the amount due. Completing those requirements has the same force and effect as filing a separate complaint and serving a summons against each listed property.
AS 29.45.340 (clearing the delinquency) and AS 29.45.370 (answer and objection)
Section 29.45.340 provides that during the publication or posting of the foreclosure list and up to the time of transfer to the municipality a person may pay the taxes together with the penalty, interest and costs, and that the collector shall note payment on the foreclosure list. Section 29.45.370 lets a person having an interest in a listed lot file an answer within 30 days after the date of last publication, has the court decide in summary proceedings, and makes the list prima facie evidence that the assessment and levy are valid and the tax unpaid.
AS 29.45.360, AS 29.45.380 and AS 29.45.390 (one in rem proceeding, judgment, transfer)
Section 29.45.360 requires one general foreclosure proceeding in rem against the properties on the foreclosure list, with unknown owners proceeded against as such. Section 29.45.380 provides that the court shall in a proper case give judgment and decree that the tax liens be foreclosed, as a several judgment against each lot and a lien on each lot. Section 29.45.390 provides that foreclosed properties are transferred to the municipality for the lien amount, that the court clerk delivers a certified copy of the judgment and decree to the municipal clerk, and that the certified judgment and decree constitutes the transfer.
AS 29.45.400 (redemption period) and AS 29.45.410 (effect of redemption)
Section 29.45.400 provides that properties transferred to the municipality are held by the municipality for at least one year, that during the redemption period a party having an interest in the property may redeem it by paying the lien amount plus penalties, interest and costs including all costs incurred under AS 29.45.440(a), that property redeemed is subject to all accrued taxes, assessments, liens and claims as though it had continued in private ownership, and that only the amount applicable under the judgment and decree must be paid to redeem. Section 29.45.410 provides that receipt of redemption money releases the judgment, and that the clerk records the redemption, issues a certificate and collects the recording fee at the time of redemption.
AS 29.45.430 (possession during redemption) and AS 29.45.440 (expiration)
Section 29.45.430 provides that foreclosure does not affect the former owner's right to possession during the redemption period, and that the municipality may declare an immediate forfeiture of that right if waste is committed. Section 29.45.440 requires the clerk, at least 30 days before the redemption period expires, to publish a redemption period expiration notice once a week for four consecutive weeks containing the judgment date, the expiration date and a forfeiture warning, and to mail a copy by certified mail to each record owner, and to lienholders of record where the assessed value exceeds 10,000 dollars, within five days after first publication. Subsection (b) provides that the right of redemption expires 30 days after the date of the first notice publication, and subsection (c) makes the lienholder-search and publication costs a lien on the property.
AS 29.45.450 (deed to borough or city) and AS 29.45.460 (disposition and sale)
Section 29.45.450 provides that unredeemed property in the area of a borough outside all cities is deeded to the borough by the clerk of the court and unredeemed property in a city is deeded to the city, that conveyance gives the municipality clear title except for prior recorded tax liens of the United States and the state, and that two years after the date of the deed its validity is conclusively presumed. Section 29.45.460 requires the municipality to determine by ordinance whether foreclosed property deeded to it is retained for a public purpose, allows sale of property not required for a public purpose, and requires certified mail notice of the ordinance hearing to the former record owner within five days after first publication.
AS 29.45.470 (repurchase by the record owner) and AS 29.45.480 (proceeds of the sale)
Section 29.45.470 lets the record owner at the time of tax foreclosure, or that owner's assigns, repurchase within 10 years and before the municipality's sale or contract of sale, for the full amount applicable under the judgment and decree plus interest not to exceed 15 percent a year from entry of the judgment to repurchase, delinquent taxes as though the property had continued in private ownership, costs of foreclosure and sale, and net costs of maintaining and managing the property; the right ceases once a public purpose retention ordinance is adopted. Section 29.45.480 entitles the former record owner to sale proceeds exceeding the taxes, penalty, interest and the municipality's costs where the property was held less than 10 years after the close of redemption and never designated for a public purpose, requires written notice of the excess, and bars a claim filed after six months of the date of sale.
AS 29.45.052 (local deferral for a primary residence) and AS 29.45.030 (the 150,000 dollar exemption)
Section 29.45.052 lets a municipality by ordinance provide for the deferral of all taxes on property owned in whole or in part by an individual who occupies and has occupied it for at least 10 consecutive years as a primary residence and whose income is at or below federal poverty guidelines, with yearly application, with deferred taxes payable only on transfer of ownership, and with no interest imposed on the deferred amount. Section 29.45.030(e) exempts the first 150,000 dollars of assessed value of an owner occupied primary residence for a resident 65 or older, a disabled veteran, or a qualifying widow or widower at least 60, and permits a municipality to exempt beyond that amount in case of hardship.
AS 43.56.010 (the only property tax the state itself levies)
Provides that an annual tax of 20 mills is levied each tax year on the full and true value of taxable property taxable under chapter 43.56, which covers oil and gas exploration, production and pipeline transportation property. It also lets a municipality levy and collect a tax on that property under AS 29.45.080 at no higher rate than applies to its other taxable property, and credits municipal tax paid on or before June 30 against the state levy.
Fairbanks North Star Borough Financial Services: Treasury and Budget, and Tax Foreclosure
A borough page showing how the statutory scheme is staffed in practice in one Alaska borough. It states that the Treasury and Budget division manages the collection of property tax, and that a separate Tax Foreclosure section monitors those properties that fall into delinquent status, works with property owners during the redemption period, and holds the property foreclosure sale at least once every two years. Office names, phone numbers and sale cadence differ from one borough or city to another.
Regional Variances
Alaska delinquent property tax rules at a glance
Who levies the tax
A borough, unified municipality or city, and only if it chooses to. A unified municipality or borough may levy a property tax, a home rule or first class city may levy one subject to AS 29.45.550 to 29.45.560, and a second class city may levy only by referendum (AS 29.45.010, AS 29.45.590). No municipality may levy an ad valorem tax above three percent of assessed value in a year (AS 29.45.090). The state's own property tax reaches only oil and gas exploration, production and pipeline transportation property, at 20 mills (AS 43.56.010).
Sale mechanism
Judicial foreclosure, and the taxing body itself takes title. The municipality enforces delinquent real property tax liens by annual foreclosure unless otherwise provided by ordinance (AS 29.45.320), brings one general foreclosure proceeding in rem against every listed property (AS 29.45.360), and obtains a several judgment against each lot (AS 29.45.380). Foreclosed properties are transferred to the municipality for the lien amount, the certified judgment and decree itself constituting the transfer (AS 29.45.390). There is no tax lien certificate, no investor purchase and no bid-down rate in the chapter.
Delinquency date
Set locally, not statewide. The rate of levy, the date of equalization and the date when taxes become delinquent are fixed by resolution of the municipality, and by July 1 the tax collector mails statements setting out the levy, the dates when taxes are payable and delinquent, and the penalties and interest (AS 29.45.240). An owner's actual date is on that statement and in the resolution behind it.
Penalty and interest before foreclosure
Statutory ceilings, local figures. A penalty not to exceed 20 percent of the tax due may be added to all delinquent taxes, and interest not to exceed 15 percent a year accrues upon all unpaid taxes, not including penalty, from the due date until paid in full (AS 29.45.250). The penalty may follow a formula that grows as the delinquency lengthens, and property taxes with penalty and interest are a lien prior and paramount to all other liens (AS 29.45.300).
Redemption period and clock
At least one year, measured from the transfer to the municipality effected by the certified judgment and decree (AS 29.45.390, AS 29.45.400). The hard edge is a notice, not an anniversary: the clerk must publish a redemption period expiration notice at least 30 days before the period ends, and the right of redemption expires 30 days after the date of that first notice publication (AS 29.45.440). The former owner keeps the right to possession throughout, subject to forfeiture for waste (AS 29.45.430).
Redeemer's charge
A capped, locally set simple annual interest rate plus a one time penalty, not an investor's return. Redemption is the lien amount plus penalties, interest and costs, including all costs incurred under AS 29.45.440(a), and only the amount applicable under the judgment and decree (AS 29.45.400). The components are capped at 20 percent penalty on the tax due and 15 percent a year interest from the due date (AS 29.45.250). There is no statutory minimum return and no auction-set rate.
Other redemption costs
Costs of determining holders of mortgages and other liens of record, and costs of notice publication, are a lien on the property and recoverable by the municipality (AS 29.45.440). The clerk collects the recording fee at the time of redemption (AS 29.45.410). Property redeemed stays subject to all accrued taxes, assessments, liens and claims as though it had continued in private ownership (AS 29.45.400), and a lienholder who pays gains an additional lien (AS 29.45.420).
Notice to the owner
The foreclosure list is published for four consecutive weeks, or posted at three public places for at least 30 days, with mailed notice to the last known owner within 10 days of first publication (AS 29.45.330), and an answer may be filed within 30 days after last publication (AS 29.45.370). The expiration notice runs weekly for four weeks with certified mail to each record owner, and to lienholders of record above 10,000 dollars of assessed value, within five days of first publication (AS 29.45.440).
Where to redeem
The borough, unified municipality or city itself; Alaska has no counties. Up to the time of transfer, payment goes to the municipal collector, who notes it on the foreclosure list (AS 29.45.340). After transfer, the clerk or the clerk's designee records the redemption, issues a certificate and collects the recording fee (AS 29.45.410). Borough staffing varies: the Fairbanks North Star Borough runs collection through Treasury and Budget with a separate Tax Foreclosure section.
Surplus proceeds
Claimable, with a six month bar. Where tax-foreclosed real property was held less than 10 years after the close of the redemption period and never designated for a public purpose and is then sold, the former record owner is entitled to the proceeds exceeding unpaid taxes, post-foreclosure equivalent taxes, penalty, interest and the municipality's foreclosure, sale and net management costs, and must be given written notice of the amount and how to claim. A claim filed after six months of the date of sale is forever barred (AS 29.45.480).
Payment plan and deferral
No statewide installment plan of redemption. What exists is a pay-off right up to the transfer (AS 29.45.340), a locally granted right to pay in two installments (AS 29.45.250), and an optional municipal deferral of all taxes for an individual who has occupied the home at least 10 consecutive years and whose income is at or below federal poverty guidelines, payable only on transfer of ownership and interest free (AS 29.45.052). The first 150,000 dollars of assessed value is exempt for qualifying senior, disabled veteran and surviving spouse owners (AS 29.45.030).
Second chance after the deed
A repurchase right that can run for a decade. The record owner at the time of tax foreclosure, or that owner's assigns, may repurchase within 10 years and before the municipality's sale or contract of sale, paying the judgment amount plus interest not exceeding 15 percent a year from entry of judgment, later taxes, foreclosure and sale costs, and net management costs (AS 29.45.470). The right ceases once an ordinance retains the property for a public purpose, and two years after the deed its validity is conclusively presumed (AS 29.45.450).
Frequently Asked Questions
Other Alaska guides
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