The Kenai Peninsula Borough Assembly has voted down a proposal that would’ve asked the state to limit annual increases in property assessments to 5 percent.
The nonbinding resolution failed by a narrow 5-4 vote during Tuesday night’s meeting. It was backed by Borough Mayor Peter Micciche, who says the cap would give residents relief from sharp jumps in their property valuations — especially those on fixed incomes.
Property values across the borough have increased by 24% in the last three years.
Micciche said the 5% cap wouldn’t cut taxes, but would give the borough more stability and predictability. He called the increase in recent assessments “extreme and unmanageable for anyone on a budget.”
Some assembly members pushed back, raising concerns about how a hard cap would work if property values increased more than 5% year-over-year. Assembly Vice Chair Brent Johnson questioned how the borough would handle those discrepancies, while Assembly Member Tyson Cox warned that if inflation stays above 5%, the cap could force mill rate adjustments.
At a Soldotna Chamber of Commerce luncheon the next day, Micciche expanded on the issue.
“Yes, we can drop your mill rate. That doesn’t make housing more affordable on the Kenai Peninsula,” he said. “We’re still agreeing to excessive valuations — often controlled by people from somewhere else that come up here and buy a nice house.”
The resolution would not have enacted any immediate changes. Instead, it would have asked the Legislature to allow boroughs the legal authority to put a cap like that in place, either by ordinance or ballot measure.
Micciche, who previewed the proposal during a State of the Borough update last week, said he’s not done trying.
“The 5% assessment cap is a responsible, data-driven approach,” he said. “And I’ll continue pushing for it — because we need more tools to bring stability to the people we serve.”
For now, the borough will continue to follow state law, which doesn’t limit the amount a property’s value can increase in a single year.