Former governor's railcar, property raise questions about tax structure
Murkowski's railcar, property stir tax questions in borough
Published Sunday, May 4, 2008
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After leaving office more than one year ago, former Gov. Frank Murkowski has traveled the world, built a cabin in Wrangell and traveled some more. In March, he led a delegation to watch democracy in action while Taiwan elected a president.
But while the ex-governor certainly gets around, the question of where he lives — at least for tax purposes — hasn’t proven quite as simple to answer.
Last February, the former governor and his wife unsuccessfully applied for a common property tax break — one available to residents who live in Fairbanks most of the year — for a Chena Pump Road property that accommodates no full-time home, only a converted railroad car. After being denied, he wrote to the Fairbanks North Star Borough that the qualifications for the tax break — a partial exemption on assessed property value — are “unclear.”
The letter also raised the indirect question of where a long-term public official can claim to live as he or she transitions back into private life.
“If we are not considered residents of Fairbanks, where would you suggest we claim residency,” Murkowski wrote to borough officials in the March 15 letter.
The tax break is one available to many Fairbanks-area residents — those who own their home and live there for 185 days or more out of the year. The Murkowskis, through the application, asked that the break be applied to a property that lacks a house but includes the renovated railroad car, which Murkowski said the family converted for trips home during his tenure in the U.S. Senate.
A year after the borough denied the application, Murkowski wrote back in mid-March to lodge concern about his land’s rising assessed property value — the price tag on the 1.5-acre Chena Pump Road lot had jumped by more than 50 percent in one year, 2006, to reach $102,853.
Murkowski wrote that he continues to pay bills at, and submit taxes for, the property, which constitutes one-quarter of a larger 5-acre tract he bought on the south side of Chena Pump Road 37 years ago. The tract has since been divided into four lots. He wrote that the couple lived in a house on Chena Pump Road until he was elected to the U.S. Senate in 1980, after which he said they “temporarily” lived in Washington, D.C., during his subsequent four terms in Congress. He left the Senate in 2002 for a term as governor, and the couple moved to Juneau until he lost a re-election bid last winter.
“But during that entire time, I have always claimed my residence to be in Fairbanks,” Murkowski wrote.
Murkowski confirmed in an interview Wednesday that they weren’t looking for special treatment from the borough or trying to say they lived in the car in 2006 or 2007. He simply indicated the borough’s application — which asks if applicants “own and reside on” their property — can be confusing at first glance.
Pat Carlson said Murkowski is right. The former governor’s question of residency status is one commonly asked by taxpayers, said Carlson, the borough’s assessor. He said he plans to update the application form for exemptions next year to reduce confusion.
Carlson said his department rejected the couple’s application because it knew the Murkowskis hadn’t physically lived at their property’s “structure” — the renovated railroad car — during the 2007 tax year.
“We’re not disputing that he’s an Alaska resident and has been forever,” Carlson said. “We’re just disputing that he has a primary residence there for purposes of the property tax exemption.”
In fact, Murkowski and his wife haven’t lived in Fairbanks, or any city other than Juneau or Washington, D.C., for at least half of any year in almost three decades. That includes last year, when Murkowski said the couple sailed around the world, lived in Wrangell for the summer, spent time in Anchorage and Harding Lake and visited Ireland and Utah before heading to Mexico early this year.
Murkowski did say, however, that the car is heated, served by underground utilities, has hot water and dishes and can accommodate short stays.
“It’s very comfortable,” he said.
The dark blue Pullman brand car sits along the property’s western boundary about a mile southwest of the Pump House Restaurant. It boasts a wooden deck with a waist-tall handrail and still sports a yellow Alaska Railroad Corp. seal on its eastern exterior wall.
Murkowski said Wednesday that a family member bought the railroad car from a Fairbanks entrepreneur a few decades ago. He said he started fixing the car up in the mid-1980s when his family was spending most of its time on the East Coast. They wanted to sell the house but needed a place to spend time when returning home, he said.
As a member of Congress, Murkowski and his staff still qualified for certain state benefits including a Permanent Fund Dividend check while in Washington. Debbie Richter, who directs the state’s Permanent Fund Dividend Division, said all congressional representatives can collect dividends.
But Carlson said the rules are different for municipal property tax exemptions, be they for homeowners or senior citizens. There’s nothing stopping someone who doesn’t qualify one year for a partial tax break from checking the residency requirements and trying again, he said.
“Every year is a new bite at the apple,” he said.
Murkowski said the new Wrangell cabin will give him and his wife, Nancy, another place to spend time. But he said the couple is enjoying traveling and isn’t ready to drop anchor in any particular spot.
“Home is just where we happen to be,” he said of life in retirement. “But it will be in Alaska somewhere.”
The Assessing Department posts answers to commonly asked-questions about taxes on its Web site: www.co.fairbanks.ak.us/assessing.
Community Discussion
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Can't say I'm surprised -- I'd try the same thing if I had a chance. No one likes paying taxes.
As one of Alaska's chief public servants during the last three decades Frank has no doubt at some time
done something to benefit Fairbanks. It would be nice to see this article contain some recognition of
the Murkaowki's service to Alaska and the community. Most places I think would at least have the couth and respect to extend the tax break to Frank as a matter of course.
So if I am reading this correctly, A congressman or any other government representative can collect a PFD while our military service members cannot? This is as screwed up as the rest of our little government.
He should have had Veco build him a house. It has already been proven that he accepted illegal money from the oil companies. He was just too much of a baby to admit it himself and had his chief of staff take the fall. I'm sure that the feds will catch up to him soon enough and he will be wishing he was living in a railcar. He should call Don and Ted and let them know how humiliating it is too get your butt handed to you in the primary election.
Actually olypopper the military members can get the PFD. My husband is in the air force and we dont live in alaska anymore but plan on visiting within the time frame we have to and plan on coming back up there to live, and he is still getting his PFD.
maybe Frank could buy the jet he used our mony to buy and live in that.
Thanks for the article, Chris.
Frank Murkowski applied for a tax exemption that is clearly only allowed for residential property owners who live on their tax parcel.
Frank is committing fraud by claiming he lives in a boxcar when his real property is at 2105 Apache Trail in Park City, Utah.
A very nice place too- worth at least in the high six figures. So Frank, a multi-millionaire living high off a lucrative Senate pension expects the rest of us homeowners to subsidize his tax exemption?
I wonder how much Felon Jim Clark is sharing with the prosecutors about Frank's other questionable conduct.
I wonder if his wife was also able to collect a dividend check for the years that she lived in D.C.
afmommy
Are you saying you don't live in AK but your husband still gets a PFD?
Please clarify for us?
I believe, if you are an Alaska residient in the military with the intent of coming back to live in Alaska after your tour, you are able to collect your dividend. My friends son inlaw is in the Navy and has been in for the past three years and he and his wife both collect theirs. They will return next year to live here.
https://www.pfd.state.ak.us/military/ind...
To help clarify with afmommy, military can get the PFD. Like all military, they PCS to another base or post. They can still apply each year as long as the intent to return to live permanently is checked on the application. They also must show proof each year they apply that they have spent at least 72 hours in Alaska. We had a 7 year lapse between when we were PCS'd and finally got back up here. We didn't apply the years we weren't here, but we could have.
See www.alaskareport.com
For news stories from all over.
Click at the top on Corrupt B's Club, scroll down, and you will find the players. Further, when you click on the stories, click on some of the links within the stories.
They'll take you to the "rest of the story."
Snuffling truffles, as usual. It's the big-brother GOP (we know what's good for the little people) attitude. Pay your taxes Murky. Participate in your community.
"As one of Alaska's chief public servants during the last three decades Frank has no doubt at some time done something to benefit Fairbanks."
But mostly he was doing things to benefit Frank or his friends.
Thanks flyer5000 I was hoping someone could come up with something Frank did that stacked up well for Fairbanks. Still am for that matter.
While in the military you must claim "residency" somewhere. I claimed Minnesota for twenty years and paid the taxes when due. But never did I really lived there. I pay property taxes to Colorado too, cost of ownership... Every state has their benefits and their taxes.
I would like to comment and clarify reference to the dividend eligibility upon a few posted messages from the readers....
A serving member of US Congress is eligible for APFD under 'allowable absence' - BUT GET THIS : any staff member working for a Alaskan US Congressional serving member is also eligible under 'allowable absence' and can collect up to 10 dividends if absent for more than 180 days outside Alaska per qualifying year....so can you imagine how many janitors, secretaries, accountants, chauffers, housekeepers, or any other appointed 'you work for me' positions by these three congressional members that help funnel out APFD money in Washington DC to other people that work for 'them' while never have to set foot in Alaska and claim residency ? -unless the 72 hour rule applies to them.
yes we dont live in alaska and me, my husband and son are getting the pfd.
No offense AFMommy (honestly I am just curious about this), but how does anyone know you are coming back? Some people might just check the box. I am by no means saying that you are, one of those. I figure if you are reading the Newsminer, you are probably still interested in the community. =)
I just wonder though if there is any failsafe to keep other people from just rechecking the box again & again.
I would also like to point out eligibility requirements upon military members of the armed forces....
Any active duty serving member of US armed forces is eligible for APFD under 'allowable absence' while claiming residency of Alaska with the intent to remain a resident of Alaska and must be physically present in Alaska for 72 consecutive hours within the past two calendar years prior to the qualifying year of application....
Funny how they enacted this 72 hour rule in place after this Air Force 'officer' seeked litigation against the APFD office (that the APFD office denied his applications) on eligibility requirements for past due dividends due to 'being stationed outside Alaska' while owning property in Alaska and claiming residency the whole time being absent from the state for the past 9 years (at the time) disputing there was no grounds for denied dividends -then the 'officer' was awarded the past 7 dividends after arbitration.
My stepbrother was born and raised in Fairbanks, and 'enlisted' in the US Navy since 1985 and is still active duty to this day - he still has a current voter registration card and Alaska driver license he renews each and every time and has been an Alaska resident all his life -
What I cannot understand is : Why did the APFD office deny his 1987, 1988 PFD while HE was on active duty and a lifelong Alaskan (although the dividend office issued him a 1987 PFD and then told him to pay it back) while his wife and two children collected two more dividends although he was ineligible due to criteria of an 'allowable absence'.... He submitted a letter to Alaskan US Congress members reference to this and got no response, so he didnt pursue it any longer - but yet their 'staff members' in Washington DC get dividend checks for 10 years without stepping foot in the state.
Funny how an 'officer' is awarded past dividend checks vs an 'enlisted' member that is a lifelong Alaskan gets denied.
yes we do intend on coming back we want to retire in ketchikan. Well I have heard from military members who have had to pay back the divdend cause they never returned back and other things so they watch the military pretty closely. They ask for orders, and other things. I have been an alaskan resident for 10 years and my husband for 4 years now and we will always be and never change. and our truck is still registered up there also. There are many things you have to do in order to keep getting it when you are a military member or their dependents. and when they ask you if you have been gone out of the state for 180 or more days they ask you why and if they dont think its a valid answer or what not then they will deny you.
And I totally understand where you are coming from AKsilvereagle that isnt right he didnt get it. That was wrong.
That is a very good question you previously posted -akprincess72- , however some Alaska State Legislator had asked that very same question too while in session and the APFD office actually had a partial answer...
According to a past Anchorage Daily News article of stats that were released by the APFD office in catagories of people that leave Alaska while still claiming residency under 'allowable absence' with 'intent to return and remain an Alaskan Resident' - the numbers are not impressive at all...
I cannot remember the exact percentages, however this is just a guideline of what my memory has stored and do not take them for fact-
Roughly in the 32% - 38% range that a US Armed Forces member and their family members ever come back to Alaska...(although I would like to know the percentage of applicants that enlisted in the armed forces from Alaska actually return or still pending on active duty)
Roughly in the 18% - 24% range that a medical related absence for treatment or a Alaska Resident to provide care to a family member ever come back to Alaska...
Roughly in the 40% - 48% range that a college student attending college outside the state ever come back to Alaska...
So according to the data , the odds are actually against 'afmommy and her family members' on intent of returning to Alaska - although the one State Lawmaker had a great idea of a failsafe measure that I (and my stepbrother) totally agree with upon safeguarding the integrity for all Alaskans and significantly cutting down fraud on the 'allowable absence' loophole :
If you are declared eligible under the 'allowable absence' criteria of when you file for a APFD, the office will 'hold all eligible dividend checks' until the applicant(s) RETURN to Alaska -AND- be PHYSICALLY PRESENT in Alaska for the FOLLOWING qualifying year not to exceed 90 days total (just like the guidelines for the rest of us that actually reside here in Alaska) .. and award the past 'qualified allowable absence status' dividend checks on hold to the applicants for the following year after the following qualifying year they were physically present ....
For example : if an applicant returns to Alaska this month after 'five allowable absence eligibility checks on hold' , the person will be required to be PHYSICALLY PRESENT in Alaska for the 2009 qualifying year not to exceed 90 days total (and only recieve a 2009 dividend), then also be PHYSICALLY PRESENT in Alaska for the 2010 qualifying year not to exceed 90 days total and recieve the 2010 APFD -and- the past dividend checks that were on hold while those checks will only be mailed to a Alaska physical or post office box address via certified mail and issued in a certified check only good to redeem within the state of Alaska.
However the majority of State Lawmakers abolished the idea, so basically they are saying 'let them fraud'.
No doubt King Frank will demand a refund.
afmommy, thanks for answering. I think it is good that the eligibility are monitored well. Hopefully your family will get to retire & enjoy Ketchikan soon.
AKsilvereagle, thanks for some interesting stats to consider.
Like many others I have gotten a dividend since it's inception & don't want to ever leave AK. Since I will always be here I probably will be getting one as long as we have it. My husband is a newer resident so I have seen him try to prove his eligibility. I have always been curious as to how it applies to other circumstances. Thanks for the information.
I am surprized this surprizes any of you. The Murkowski's live under a whole different set of rules.
Remember Lisa tried to accept a piece of property, that was acessed below market value, from a buddy of the Murkowski clan. She had to be shamed into returning the parcel.
Big Frank had to have his own Private Jet. The reason was, in his out of phaze view of the world, his buddies at BP, and Connaco, had jet access, so he needed jet access also.
I am a military retiree and a disabled veteran. Since retiring, I have brought over $180,000 from the federal government into this state, in the form of retirement pay and disability compensation. I've also brought in several thousand dollars in VA educational benefits while attending UAF.
I arrived in Alaska 5 Jan 1980 and, within weeks, changed my state of residency declaration to Alaska. In doing so, I gave up the foreign duty pay I would have received had I maintained my Illinois residency. (If I recall correctly, I would have been money ahead if i had kept my Illinois residency and forgone the Alaska PFD.)
I also change my residency knowing full well that Alaska still had a state income tax. (Illinois, at least at that time, did not tax military income at all.) I even filed state income tax forms the final year before Alaska repealed its income tax. (Those who have been around a while will recall that year, when the revenue department said, "File but don't send in a check while we wait for the legislature to decide what it's gonna do.")
My daughter was born in Alaska. She spent her entire life up to age 18 in Alaska, except for the 2-1/2 years she was with me when I was stationed in Illinois the second time. (I assume you agree it's okay for a grade school age Alaskan to accompany her parents on an allowed out of state absence.) She entered the U.S. Army shortly after turning 18 and, following basic training and AIT, was station in England.
Even though she'd receive every dividend since she was born in 1981, the department of revenue demanded additional documentation once she enlisted. (She submitted her LES, as required, but they wanted more info.) Because of delays in the APO system, she wasn't able to get the requested information to them in the time they allowed and she was declared ineligible. It was several years later, after finagling an assignment to Fort Wainwright, before she could resume receiving the PFD.
My grandson was born in Alaska and has NEVER been outside the state in his entire life. Due to some legal difficulties related to mother's military service, he also has missed out on several dividends.
Both of my children are on track to complete a career in the military and both appear intent on returning to Alaska afterwards. Like me, they will be bringing federal dollars with them when they return.
Economist say outside money is worth three to five times as much as a local payroll, due to recirculation of those dollars. In that respect, you can consider me (and every other retiree and veteran) as a kind of permanent 'tourist'. In my case alone, that's equivalent to a payroll of somewhere between 1/2 and one million dollars.
Choose carefully -- military retirees can go elsewhere ... and, if we do, each of us will be yanking the equivalent of ten or more PFDs per year out of the state economy.
Sadly enough AKNATUFF I wasn't trying to dig up some dirt- quite the opposite- dig up some good. I would like to hear about some of the good things Frank accomplished for Fairbanks and Alaska during those three decades. I was here for most of it and somehow missed out. I am not being sarcastic either.
There must be some reason why Alaskans kept voting for him. I couldn't see it then and sure can't now.
But that is no reason to turn on him for alllll you others out there that repeatedly cast that vote. At least stand behind the choice you made and give him the due you felt he must have been earning.
Oh, yeah, I forgot to mention ... I personally know of a case where an Air Force Master Sergeant was charged with fraud due to receiving Alaska Permanent Fund Dividends.
I don't know all the details but he must have pissed off several people. I personally heard him say he was getting the PFD but he was also "outta this hellhole the minute my tour is up." I learned later, from a friend in the OSI, he was already under investigation regarding the matter when I made my report.
Word to the wise: If you're in the military and receiving the PFD even though you don't intend to remain an Alaska resident, you'd better keep your mouth shut. Otherwise, a fellow soldier, sailor, or airman, who IS an Alaska resident, will probably report you.
I don't know what the state did to the Master Sergeant mentioned above. I do know he was convicted of several charges under the UCMJ, all related to his receipt of APFDs. (I've heard some of the charges were conduct unbecoming, bearing false witness, and larceny.)
By the way, for those who don't know it, a conviction under the UCMJ, including an Article 15, is the exact same thing as a conviction in federal court to federal charges.
What a fabulous website link you turned us onto -Corinne- .... nice , real nice ! (nods head)
http://alaskareport.com/news/z49999_corr...
AKNATUFF - "Why bring up the Murkowski's." Because Frank is still attempting his slimy tricks.
However, "like father like daughter" does NOT appear to be true. I did not like the way Lisa 'inherited" her Senate seat. On the other hand, she has been re-elected and she appears to be doing a good job of representing Alaska and serving the United States.
For a long, long time, I appreciated all Ted Stevens has done. Now, I have to say, Lisa is "my man" in Congress.
Lets see , Murcowardski disputes the partial property tax exemption denial due to the fact that he claims residency at that railroad car/property. When in fact he never resides there for the minimum 185 days out of the calendar tax year as the regulation clearly states it is a requirement in order to recieve the partial exemption status. If he were living in the dwelling to meet the requirement timeframe, he wouldnt have to pay any property tax on it due to senior citizen exemption status. If the Borough Officials are assessing the dwelling as a permanent structure -upon fact it is not a 'permanent structure with a foundation', then Murcowardski has a case upon reassessment to attempt on lowering the tax bill. Other factors do come into play for 'improvements of the property that are added' whether any non permanent structure dwellings , sheds , clearings , other property improvements around you (area), etc. can actually increase the assessed value.
This 'small tax dispute amount' is coming from a person that gets at least a yearly salary of US Congressional pay for life as a pension from the federal government that I am sure he can easily afford to pay.
While serving as State Governor he signed into law by eliminating the Alaska Senior Citizen Longitivity Bonus for seniors (who paid into social security all their lives unlike US Congress members who dont pay any contributions in their pension plan) that really relied on those bonus checks for basic necessities- while the Governor also restricting, eliminating, or raising fees of other state programs that are structured for the people because of 'budget cuts they cannot afford to sustain' - while imposing for a statewide sales tax and state income tax to increase state revenue not to mention the 'tire tax' to pay for our potholed roads and highways the people constantly drive on while the federal road funds are squeezed tighter for the entire state. Why do these politicians think every citizen has more money than they do in order to pay for more services and improvements that they keep eliminating in 'their budget'.
However he lets the 'cuts they cannot afford to sustain' state budget allow to pay the bills on the leer jet that was purchased for his personal/business use, then complains there isnt enough 'standing room' in it , then takes off in the leer jet after Sarah Palin takes over office cuz he was so onry losing the re-election term that he refuses to pay the bill that the state presented him on the total operation costs of the leer jet he occupied after exceeding his office term -(including the takeoff and landing fees). No wonder he 'Frankrupted' some bank many years ago with this logic way of thinking.
After 15 months since his last term, all the corruption related to him directly is starting to surface now... what nerve he has disputing over a small personal tax bill when he eliminated revenue from all Alaskan Seniors.(shakes head)
There is a principle in this country called "innocent until proven guilty", and no one has proved anything about Mr. Murkowski. There are things he's done I disagreed with, but that's no ground for slander. He didn't eliminate revenue from all Alaskan Seniors, the State government eliminated one of their welfare programs.
The reason we kept voting for him is because he did a good job, and he was very conservative, which gives you the obvious reason why the liberals don't like him here. It's too bad his daughter is so liberal, we definitely need more conservatives in Washington.
Isn't it perfect that Frank Murkowski owns a railroad car? I mean, he spent a quarter century railroading the State of Alaska, so he should feel right at home in one.
Yo, Frank, you put on yer pants like the rest of us. Get over yourself.
With regard to the off-topic issue of the PFD, unfortunately there are also a lot of military members out there who still exploit that check. Someone even wrote a few years back to the FNM about 6 Army families down in Ft Benning that were gleefully collecting them, and no intent to return.
I think we need to go back to the two person signature deal myself. At least that way once EVERYONE rotates out, they have no buddies to send their applications to after about 4 years.
I waited until after I retired before I even put in for my first one, and the dipsticks in JNU sent me this letter asking me why I hadn't applied before; WTH? That was a blantant waste of effort there. Goes back into the Borough coffers anyway. :rolleyes:
My plugged nickels, sorry for going off-topic with the thread otherwise.
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