Bulletin: AK000012

Date:
November 20, 1991
To:
Alaska Agents
RE:
ANCSCA Tax Exemption

Dear Associates:

The Alaska Supreme Court has attempted to clarify the taxation of "developed" land conveyed to natives, village corporations or original corporations under ANCSCA. Kenai Peninsula Borough v. Cook Inlet Region, 807 P.2d 487 (Alaska 1991). Kenai Peninsula Borough v. Tyonek Native Corporation, 807 P.2d 502 (Alaska 1991).

ANCSCA has an exemption from real property taxation for lands conveyed under the act. The exemption was limited in time to 20 years, and in content to lands "which are not developed or leased to third parties". In both cases the court held that the lands were "developed" and, therefore, taxable.

In the Cook Inlet case the court held that subdivided lots were developed and taxable. In the Tyonek case the court ruled that property improved by a lessee remained developed and taxable even after the lease expired and the improvements fell into disuse. The improvements were a lumber mill operation.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
19.04 Taxes And Assessments
Exceptions Manual:
AK Taxes, Real Property
Forms:
None