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A. As provided in AS 29.45.230, the Kodiak Island Borough provides for assessment or reassessment and reduction of taxes for property destroyed, damaged, or otherwise reduced in value as a result of a disaster.

B. Definitions. For purposes of this section, “disaster” is defined as a force majeure including fire, wind damage, earthquake damage, extreme weather damage or accidental damage caused by a force beyond the control of the owner or occupant. Not included are acts due to malfeasance or unlawful activities.

C. An assessment or reassessment under this section may be made by the assessor only upon the receipt of a sworn statement of the taxpayer who has incurred losses in excess of $10,000. A reduction of taxes may be made only on losses in excess of $10,000 for the remainder of the year following the disaster. In the event taxes have already been paid for the year, on reassessment, the municipality shall re-compute the taxes and refund any excess taxes.

1. Requirements for Applying for the Adjustment.

a. A taxpayer must provide evidence of the loss estimate such as insurance documents, contractor quotes to repair, engineering quotes, etc.

b. The assessor or designee must inspect the property or make an investigation to determine the extent of the damage.

c. The reduction in assessment shall be for one year only. If the damage occurs near the end of the year and repairs will not be complete until the following year, the taxpayer can choose to take the deduction for the current year or for the following year.

d. If the repairs exceed the assessor’s value of the improvement, the reduction will be based on the assessor’s value.

e. If damage occurs after June 30th, and is for more than 50 percent of the assessed value of the improvement, the reduction will be prorated by the percentage of the remaining year. This will be based on the date of the event and a 365-day year.

2. Method of Determining the Adjustment.

a. The reduction in assessment shall be the estimated cost to repair the improvement.

D. The municipality shall give notice of assessment or reassessment under this section and shall hold an equalization hearing as provided in this chapter, except that a notice of appeal must be filed with the board of equalization within 10 days after notice of assessment or reassessment is given to the person appealing. Otherwise, the right of appeal ceases unless the board finds that the taxpayer is unable to comply. [Ord. FY2018-21 §2, 2018].