Rate Breakdown

Property taxes in Fairbanks North Star Borough County are calculated by multiplying the assessed value (minus exemptions) by the total local millage rate.

How Property Tax Works in Fairbanks North Star Borough County

Property taxes in Fairbanks North Star Borough (FNSB) are levied by the borough, the state, and, where applicable, municipal entities such as the City of Fairbanks. The process begins with an annual assessment conducted by the FNSB Assessor’s Office. Each taxable parcel is evaluated at its “fair market value,” which reflects what a willing buyer would pay for the property on the open market as of the assessment date (typically January 1 of the tax year).

Once the market value is established, the assessor applies the appropriate assessment ratio—generally 100% for residential land and structures, though certain commercial or industrial properties may be assessed at a different percentage. The resulting assessed value is then multiplied by the combined millage rate (mills per $1,000 of assessed value) to calculate the annual tax liability.

For 2024, the combined millage rate for the borough is approximately 8.75 mills (0.875%). This total includes:

• FNSB general fund and debt service millage
• State school district (Eagle River School District) millage
• Any incorporated city or special district millage that applies to the parcel

Because Alaska does not have a statewide property tax, the rates can vary significantly between neighborhoods, depending on local services and debt obligations.

Available Exemptions

Alaska offers several property‑tax exemptions that can reduce the assessed value or the tax bill for eligible owners. In Fairbanks North Star Borough, the most common exemptions include:

• Homestead Exemption: Residents who own and occupy their home as a primary residence may qualify for a $1,500 reduction in assessed value. The exemption is automatically applied when the owner files a homestead declaration with the borough.
• Senior Citizen Exemption: Homeowners aged 65 or older may receive an additional $1,500 reduction, provided the residence is their principal dwelling and they meet income criteria (typically not exceeding $50,000 household income).
• Disability Exemption: Persons with qualifying disabilities (as defined by the Alaska Department of Disability Services) may also claim a $1,500 reduction in assessed value.
• Veteran Exemption: Honorable‑discharged veterans or their surviving spouses can obtain a $1,500 reduction, with an extra $1,500 available for veterans who are permanently and totally disabled.

All exemptions must be claimed on the annual property tax return or by filing the appropriate exemption forms with the borough assessor’s office before the assessment deadline (usually March 31).

Payment Schedule & Deadlines

FNSB issues property tax bills in two installments:

• First installment: Due October 15. This payment covers half of the total tax liability.
• Second installment: Due March 15 of the following year. The remaining balance is due at this time.

Taxpayers may also elect to pay the full amount by October 15 to avoid the administrative effort of a second payment. Payments can be made online through the borough’s e‑Pay portal, by mail, or in person at the borough’s finance office.

If either installment is not paid by the deadline, a 10% penalty is added to the overdue amount, and interest accrues at the statutory rate (currently 1% per month). Continued delinquency may result in a tax lien, forced sale of the property, or other collection actions.

Appealing Your Assessment

If you believe your property has been incorrectly assessed, you have the right to appeal within the Fairbanks North Star Borough. Follow these steps:

1. Review the assessment notice: Verify the market value, assessment ratio, and any exemptions applied.
2. Gather evidence: Collect recent sales data for comparable properties, an independent appraisal, or photographs that support your claim.
3. File a written appeal: Submit a Form 12 (Property Tax Appeal) to the FNSB Assessor’s Office no later than 30 days after the assessment notice is mailed.
4. Attend the hearing: A hearing officer will schedule a hearing, usually within 45 days of filing. Bring all supporting documentation and be prepared to answer questions.
5. Receive the decision: The hearing officer issues a written decision. If you disagree, you may appeal to the Alaska State Tax Tribunal within 30 days of the decision.

Timely filing and thorough documentation are essential; many appeals are resolved by adjusting the assessed value, resulting in lower taxes for the property owner.