In enacting ANCSA, Congress declared as a policy that “the settlement should be accomplished . . . without adding to the categories of properties and institutions enjoying special tax privileges . . . .” 43 U.S.C. § 1601(b). Congress did, however, provide for an exemption from real property taxation for lands conveyed under the act. The exemption was limited in time to 20 years, and in content to lands “which are not developed or leased to third parties.” 43 U.S.C. § 1620(d)(1). This case concerns the meaning of the term “developed” in the act.
The Alaska Native Claims Settlement Act (ANCSA), 43 U.S.C. §§ 1601-1628 (1982), extinguished all claims of the Native people of Alaska based on aboriginal title in exchange for 962.5 million dollars and 44 million acres of public land. See United States v. Atlantic Richfield Co., 612 F.2d 1132, 1134 (9th Cir. 1980). The act authorized the creation of 13 regional and over 200 village corporations to receive this money and land.In enacting ANCSA, Congress declared as a policy that “the settlement should be accomplished . . . without adding to the categories of properties and institutions enjoying special tax privileges . . . .” 43 U.S.C. § 1601(b). Congress did, however, provide for an exemption from real property taxation for lands conveyed under the act. The exemption was limited in time to 20 years, and in content to lands “which are not developed or leased to third parties.” 43 U.S.C. § 1620(d)(1). This case concerns the meaning of the term “developed” in the act.Salamatof Native Association, Inc. (Salamatof) is a village corporation which received land under ANCSA. At issue in this appeal are the tax years 1981 through 1985 and 161 tax parcels. Salamatof paid real property taxes to the Kenai Peninsula Borough (borough) on all parcels and appealed to the borough assessor. The assessor found that taxes for 1981 through 1983 were not protested in a timely manner and denied the appeal as to all parcels for those years. He found that taxes for 1984 and subsequent years were protested on time. On the merits, the assessor found that a number of parcels were exempt. However, he denied exemptions to some of the parcels presently before us on the grounds that the parcels were developed. As to these, the assessor stated, in relevant part:
Adds precedent that influences how ANCSA corporations, regulators, and shareholders interpret governance rights and remedies.