Appeals spike in Mat-Su as property values climb more than 7%

What you need to know:

• Formal property assessment appeals more than doubled this year, likely linked to a more than 7% increase in average property values and greater awareness of the appeal process.
• About 410 assessments have already been adjusted through informal discussions, while roughly 181 appeals remain in process, with officials expecting more than 40 to reach the Board of Equalization.
• The borough is trying to fill vacancies on its volunteer appeals board as hearings begin April 2.

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PALMER —Mat-Su Borough property assessors received more than twice as many formal appeals as last year after average property values increased by more than 7% across the region, officials said last week.

The Matanuska-Susitna Borough assessment office received 421 formal appeals this year, up from 148 filed last year, borough Assessor Oliver Querin said in an email Thursday. His office also fielded 1,046 phone calls from residents questioning their assessments, up from 635 last year, he said.

So far, about 410 assessments have been adjusted after a property owner spoke with one of the borough’s 13 appraisers without going to a formal hearing, he said.

Of the 421 formally filed appeals, 181 are still in process and slated to proceed to an official hearing before the borough’s six-member Board of Equalization, which has the power to rule on the matter.  The remainder were withdrawn either becuase the borough agreed to adjust the assessment or because the property owner decided to end the process without going to a hearing.

Querin said his office is working to reduce the number headed to a hearing by continuing to working with residents to come to an agreement before the meeting. He said he expects less than 100 appeals will ultimately be heard by the board.

The deadline to file a formal appeal was Feb. 27.

The increase in phone calls and formal appeals is likely linked to the year-over-year boost to local property values, paired with increased publicity regarding the appeal process and local property taxes.

The spike comes at the same time as an even more dramatic increase in Anchorage, where residents this year saw a more than a 75% rise in formal appeals, from 455 last year to nearly 2,000 this year. Members of that board asked the Anchorage Assembly to help them recruit more members to process those appeals.

Officials in Mat-Su are also hoping to find more members to fill out their Board of Equalization, which has 15 slots but only six current members. Querin said the board ideally has eight to 10 members and is recruiting Mat-Su residents who have a strong knowledge of the local real estate market, which is a major part of how assessments are determined.

Board members are paid $50 per day they attend hearings, according to current borough law. A measure increasing that pay to $100 will be considered by the Assembly next week.

Board of Equalization hearings start April 2 and continue three days a week until mid-May or until all formal appeals are processed, Querin said. Each hearing takes about 30 minutes, he said.

Few appeals that make it to the hearing stage are ultimately adjusted in residents’ favor because the assessment office does not advance cases to that step unless officials believe they can fully defend their decision before the board, Querin said in an interview last month.

For example, in 2016, the board heard 44 cases — a 10-year high — but ruled in favor of the property owner in only two of those. Last year, the board heard 31 appeals and made four value adjustments. Residents can appeal the board’s decision to Alaska Superior Court.

This is the second year in a row with increased appeals in Mat-Su, according to borough data.

An average increase of more than 8% in property values last year also boosted phone calls to the assessment office and formal appeals, but by a much smaller amount, according to borough data. In 2024, the office received 508 phone calls, which increased to 635 last year; 96 appeals were filed in 2024, compared with 148 last year.

Matanuska-Susitna Borough officials use annual property value assessments to calculate total tax bills for the upcoming fiscal year, which starts July 1.

Final bills are based on individual property values calculated against the tax rate, or mill rate, set by the Assembly for the entire region. That rate is determined by the borough’s total budget. When property values and the mill rate both go up, average tax bills rise; if property values rise but the mill rate goes down, average tax bills may decrease.

-- Contact Amy Bushatz at contact@matsusentinel.com