Haines seniors saw major savings in 2025 after voters decided to double a property tax exemption for seniors and disabled veterans. Now that exemption could change again – but in the opposite direction.
The state of Alaska requires all municipalities to exempt the first $150,000 in value on eligible primary residences from property taxes. In 2024, Haines voters boosted that exemption to $300,000.
Next month, local voters will weigh in on Ballot Initiative 1, which would drop that exemption to $200,000.
Outgoing Haines Mayor Tom Morphet championed the initiative. He said he thinks there’s good reason to give seniors more of a break, particularly amid surging home values. He just didn’t agree with doubling the amount.
“I just thought that the $300,000 break was excessive and unfair, quite frankly, to the younger members of our community who pay a full amount and also aren’t entitled to some of the other breaks that seniors get,” Morphet said.
With a median age around 50, Haines is Alaska’s oldest borough. Nearly 30% of the population is age 65 or older, according to census estimates.
Worry for younger residents and families has been a major theme of Morphet’s tenure. He’s repeatedly raised concerns over Haines’ ability to attract and support younger generations amid a persistent lack of affordable housing, childcare, and well paying jobs.
As he sees it, the situation merits a more balanced approach to taxation to ensure the burden is spread evenly.
“If we make this a great place for seniors to live, and not such a great place for young people to live, then we can only ever expect seniors to move here,” he said. “And then we’ll wind up with what I would call a lopsided community.”
Doubling the exemption to $300,000 last year cost the borough about $270,000, according to Haines Chief Financial Officer Jila Stuart. That’s about 4% of the general fund operating budget.
Opponents of the ballot measure say many seniors need the full break, and that higher tax bills could be the difference between some people staying in their homes and having to sell.
“They’ve worked all their lives for their home, and they’re comfortable in them,” said Jerry Lapp, who is 77 and has lived in Haines for fifty years. “Now, you just put more burden on them.”
If the initiative passes, he said he would owe an additional $1,000 on top of the $3,000 he already pays. Lapp said he could absorb that amount, but he feels like he’s already paying his fair share.
“To me, it’s just like a slap in the face to the seniors, because of all they’ve done for this community,” he said.
Not all seniors agree. In 2025, 32 property owners who applied for the state-mandated exemption chose to opt out of the additional $150,000 tax break, according to Stuart, the borough CFO.
Morphet said he thinks it comes down to the intent behind the exemption. He said it should be used to provide some reasonable relief for seniors who no longer make what they used to. But he doesn’t think it should be used to allow “people of modest means to live in big houses.”
“If you’re in a $600,000 house and you can’t pay taxes as if your house was only worth $400,000, then I don’t know that it’s the obligation of the rest of the taxpayers to make up that difference,” he said.
Some have advocated for an exemption based on income to ensure those who need help can get it – and that those who don’t, don’t. Asked about that path, Morphet said there’s already a similar option on the books.
Seniors and disabled veterans with lower incomes can apply for a so-called “hardship exemption.” If they qualify, the borough would exempt them from all property tax that exceeds 2% of their total income.
Early voting for the municipal election starts Sept. 21. Election day is Oct. 6.
