Borough, SEARHC negotiating voluntary tax payment agreement


The SouthEast Alaska Regional Health Consortium and the borough are negotiating another year of voluntary payment in lieu of taxes on the nonprofit’s property in town.

SEARHC paid property taxes when the clinic and hospital were under construction, Finance Director Mason Villarma said March 2, even though those tribal-owned parcels are exempt from property taxes.

Construction on the $30 million hospital started in 2019; the facility opened in February 2021. SEARHC paid $331,000 for the 2021 tax year.

Payments in lieu of taxes, or PILTs, “are really common with nonprofits and tribal enti...

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