00                      CS FOR HOUSE BILL NO. 40(CRA)                                                                     
01 "An Act establishing a municipal tax exemption for certain farm structures."                                            
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 29.45.050 is amended by adding new subsections to read:                                            
04            (t)  A municipality may by ordinance partially or totally exempt from taxation                               
05       a farm structure used exclusively for farming activity, or purposes directly related to                           
06       farming activity, if the farm structure is owned or leased by a person that is actively                           
07       engaged in farming and that derives at least 10 percent of the person's yearly gross                              
08       income from farming activity, and the structure is used for                                                       
09                 (1)  the growing, storage, or processing of grains, fruits, vegetables, or                              
10       other crops intended for human consumption and produced by the owner's or lessee's                                
11       farming activity;                                                                                                 
12                 (2)  the storage or processing of                                                                       
13                      (A)  feed for livestock, poultry, or other animals used in the                                     
14            owner's or lessee's farming activity;                                                                        
15                      (B)  milk or milk products produced by the owner's or lessee's                                     

01            farming activity; or                                                                                         
02                 (3)  stabling or milking the owner's or lessee's dairy animals.                                         
03            (u)  In this section, "farming activity" means raising and harvesting crops;                                 
04       feeding, breeding, and managing livestock; dairying; or any combination of those                                  
05       activities.