- November 20, 1991
- Alaska Agents
- ANCSCA Tax Exemption
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.
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