Kenai Peninsula Borough Sales Tax: No Borough Sales Tax on a Disabled Veteran’s Rent

KPB 5.18.200 exempts from borough sales tax "Senior, disabled resident, and disabled veteran housing rent": rental payments for a dwelling unit used as the permanent place of abode of a resident who is at least 65, a disabled veteran or a disabled resident (KPB 5.18.200(16)). A dwelling unit is a house, an apartment, or a room in a residential facility such as congregate housing or assisted living. Who qualifies. "Permanent" means the tenant has lived in the Kenai Peninsula Borough at least six months and is an Alaska resident. Disabled veteran takes its meaning from the borough's property tax code - a veteran rated 50 percent or more by the branch of service or VA, or disabled in Alaska Territorial Guard service. The exemption also covers a widow or widower at least 60 of someone who qualified as a senior or disabled veteran. If someone other than a spouse lives in the unit, the exemption can be lost unless that person also qualifies or, with a senior, is supported by them. How it works. The landlord must accept an affidavit from the tenant on the borough's form as proof of eligibility; the Sales Tax Division's brochure for landlords says the landlord has the tenant sign the borough's exemption form and keeps it on file in case the reporting period is audited. Read with care. KPB 5.18.200(16) still points to the definition of disabled veteran in KPB 5.12.105(H)(3), a section Ordinance 2025-21 repealed when it reenacted chapter 5.12 and moved the exemptions to chapter 5.13; the definition now sits in KPB 5.13.190 and reads the same. The exemption is from borough sales tax; ask whether a city's own sales tax inside the borough exempts the same rent. An April 2026 proposal to exempt all residential rentals over 30 days (Ordinance 2026-20) failed introduction on April 21, 2026. Contact. Kenai Peninsula Borough Sales Tax Division, 144 North Binkley Street, Soldotna, AK 99669.