HB 317: "An Act relating to the municipal tax exemption of farm use land and structures on farm use land; requiring a vote in municipalities that do not currently provide a general tax exemption for structures used in farming activity; and providing for an effective date."
00 HOUSE BILL NO. 317 01 "An Act relating to the municipal tax exemption of farm use land and structures on 02 farm use land; requiring a vote in municipalities that do not currently provide a general 03 tax exemption for structures used in farming activity; and providing for an effective 04 date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 29.45.050(t) is amended to read: 07 (t) A municipality may by ordinance approved by the voters partially or totally 08 exempt from taxation a farm structure used exclusively for farming activity, or 09 purposes directly related to farming activity, if the farm structure is owned or leased 10 by a person that is actively engaged in farming [AND THAT DERIVES AT LEAST 11 10 PERCENT OF THE PERSON'S YEARLY GROSS INCOME FROM FARMING 12 ACTIVITY,] and the structure is used for 13 (1) the growing, storage, or processing of grains, fruits, vegetables, or 14 other crops intended for human consumption and produced by the owner's or lessee's
01 farming activity; 02 (2) the storage or processing of 03 (A) feed for livestock, poultry, or other animals used in the 04 owner's or lessee's farming activity; 05 (B) milk or milk products produced by the owner's or lessee's 06 farming activity; or 07 (3) stabling or milking the owner's or lessee's dairy animals. 08 * Sec. 2. AS 29.45.060(a) is amended to read: 09 (a) Farm use land, and structures on farm use land that are used for farm 10 operations, included in a farm unit and not dedicated or being used for nonfarm 11 purposes shall be assessed on the basis of full and true value for farm use and may not 12 be assessed as if subdivided or used for some other nonfarm purpose. The assessor 13 shall maintain records valuing the land for both full and true value and farm use value. 14 If the land is sold, leased, or otherwise disposed of for uses incompatible with farm 15 use or converted to a use incompatible with farm use by the owner, the owner is liable 16 to pay an amount equal to the additional tax at the current mill levy together with eight 17 percent interest for the preceding seven years, as though the land had not been 18 assessed for farm use purposes. Payment by the owner shall be made to the state to the 19 extent of its reimbursement for revenue loss under (d) of this section for the preceding 20 seven years. The balance of the payment shall be made to the municipality. 21 * Sec. 3. AS 29.45.060(f) is amended to read: 22 (f) This section does not apply to land for which the owner has granted, and 23 has outstanding, a lease or option to buy the surface rights. [A PROPERTY OWNER 24 WISHING TO FILE FOR FARM USE CLASSIFICATION HAVING NO HISTORY 25 OF FARM-RELATED INCOME MAY SUBMIT A DECLARATION OF INTENT 26 AT THE TIME OF FILING THE APPLICATION WITH THE ASSESSOR 27 SETTING OUT THE INTENDED USE OF THE LAND AND THE ANTICIPATED 28 PERCENTAGE OF INCOME. AN APPLICANT USING THIS PROCEDURE 29 SHALL FILE WITH THE ASSESSOR BEFORE FEBRUARY 1 OF THE 30 FOLLOWING YEAR A NOTARIZED STATEMENT OF THE PERCENTAGE OF 31 GROSS INCOME ATTRIBUTABLE TO THE LAND. FAILURE TO MAKE THE
01 FILING REQUIRED IN THIS SUBSECTION FORFEITS THE EXEMPTION.] 02 * Sec. 4. AS 29.45.060(g) is amended to read: 03 (g) In this section, "farm use" means the use of land [FOR PROFIT] for 04 raising and harvesting crops, for the feeding, breeding, and management of livestock, 05 for dairying, or for another agricultural use, or for any combination of these. To be 06 farm use land, the owner or lessee must be actively engaged in farming the land [, 07 AND DERIVE AT LEAST 10 PERCENT OF YEARLY GROSS INCOME FROM 08 THE LAND]. 09 * Sec. 5. AS 29.45.060(c) is repealed. 10 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 MUNICIPAL VOTE ON FARM STRUCTURE EXEMPTION. Notwithstanding the 13 requirement in AS 29.45.050(t), as amended by sec. 1 of this Act, that a farm structure tax 14 exemption originate by ordinance, a municipality that has not adopted an ordinance partially 15 or totally exempting farm structures from taxation under AS 29.45.050(t) shall, at the next 16 regular election that is at least 20 days after the effective date of this Act, place before the 17 voters of the municipality the question in this section. The question shall appear on the ballot 18 in the following form: 19 Q U E S T I O N 20 Shall [name of municipality] totally exempt from taxation farm 21 structures that are used exclusively for farming activity, or purposes directly 22 related to farming activity, when the farm structure is owned or leased by a 23 person that is actively engaged in farming and the structure is used for 24 (1) the growing, storage, or processing of grains, fruits, vegetables, or 25 other crops intended for human consumption and produced by the owner's or 26 lessee's farming activity; 27 (2) the storage or processing of 28 (A) feed for livestock, poultry, or other animals used in the 29 owner's or lessee's farming activity; 30 (B) milk or milk products produced by the owner's or lessee's 31 farming activity; or
01 (3) stabling or milking the owner's or lessee's dairy animals. 02 Yes [ ] No [ ] 03 If voters approve the question, the municipality shall totally exempt from taxation a 04 farm structure under AS 29.45.050(t). 05 * Sec. 7. This Act takes effect January 1, 2025.