(a) A municipality may by ordinance permit deferral of payment of taxes on all or a portion of the increase in assessed value directly attributable to (1) the subdivision of a single parcel of property into three or more parcels; and (2) any improvements made to the property necessitated by its subdivision. (b) A deferral from taxation allowed under (a) of this section shall be limited to a maximum period of five years. A municipality may by ordinance provide for the deferral of payment of taxes permitted under (a) of this section to be of a shorter duration. (c) Subject to (b) of this section, a municipality may also by ordinance provide that (1) the deferral is terminated when (A) a lot in the subdivision is sold; or (B) a residential or commercial building is built on a lot in the subdivision; or (2) the deferral continues for the unsold lots in the subdivision after (A) a lot in the subdivision is sold; or (B) a residential or commercial building is constructed on a lot in the subdivision.
Alaska Legal Code