CSSB 161(CRA): "An Act relating to municipal taxation of farm land and farm structures; and providing for an effective date."
00 CS FOR SENATE BILL NO. 161(CRA) 01 "An Act relating to municipal taxation of farm land and farm structures; and providing 02 for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.050(t) is amended to read: 05 (t) A municipality may by ordinance [APPROVED BY THE VOTERS] 06 partially or totally exempt from taxation farm land and farm structures [A FARM 07 STRUCTURE] used [EXCLUSIVELY] for farming activity, or purposes directly 08 related to farming activity, if the farm land or farm structure meets the criteria set 09 out in this subsection. The farm land or farm structure must be [IS] owned or 10 leased by a person that is actively engaged in farming, [AND] that normally 11 produces at least $1,000 of agricultural products offered for sale, and that files an 12 Internal Revenue Service Schedule F (Form 1040) with the United States Internal 13 Revenue Service. The farm land or farm [DERIVES AT LEAST 10 PERCENT OF 14 THE PERSON'S YEARLY GROSS INCOME FROM FARMING ACTIVITY, AND
01 THE] structure must be [IS] used for 02 (1) the growing, storage, or processing of grains, fruits, vegetables, or 03 other crops [INTENDED FOR HUMAN CONSUMPTION] and produced by the 04 owner's or lessee's farming activity; 05 (2) the storage or processing of 06 (A) feed for livestock; 07 (B) livestock, poultry, or other animals used in the owner's or 08 lessee's farming activity; 09 (C) [(B)] milk or milk products produced by the owner's or 10 lessee's farming activity; or 11 (3) sheltering, stabling, or milking the owner's or lessee's dairy 12 animals, poultry, or livestock. 13 * Sec. 2. AS 29.45.060(a) is amended to read: 14 (a) Farm use land, and structures on farm use land that are used for farm 15 operations, included in a farm unit and not dedicated or being used for nonfarm 16 purposes shall be assessed on the basis of full and true value for farm use and may not 17 be assessed as if subdivided or used for some other nonfarm purpose. The assessor 18 shall maintain records valuing the land for both full and true value and farm use value. 19 If the land is sold, leased, or otherwise disposed of for uses incompatible with farm 20 use or converted to a use incompatible with farm use by the owner, the owner is liable 21 to pay an amount equal to the additional tax at the current mill levy together with eight 22 percent interest for the preceding seven years, as though the land had not been 23 assessed for farm use purposes. Payment by the owner shall be made to the state to the 24 extent of its reimbursement for revenue loss under (d) of this section for the preceding 25 seven years. The balance of the payment shall be made to the municipality. 26 * Sec. 3. AS 29.45.060(f) is amended to read: 27 (f) This section does not apply to land for which the owner has granted, and 28 has outstanding, a lease or option to buy the surface rights. A property owner wishing 29 to file for farm use classification having no history of farm-related income may submit 30 a declaration of intent at the time of filing the application with the assessor setting out 31 the intended use of the land and certifying that the property owner intends to file
01 an Internal Revenue Service Schedule F (Form 1040) with the United States 02 Internal Revenue Service for the current tax year [THE ANTICIPATED 03 PERCENTAGE OF INCOME]. An applicant using this procedure shall file with the 04 assessor on or before April 15 [FEBRUARY 1] of the following year a copy of the 05 Schedule F (Form 1040) the applicant files with the Internal Revenue Service 06 [NOTARIZED STATEMENT OF THE PERCENTAGE OF GROSS INCOME 07 ATTRIBUTABLE TO THE LAND]. Failure to make a [THE] filing required in this 08 subsection forfeits the exemption. 09 * Sec. 4. AS 29.45.060(g) is amended to read: 10 (g) In this section, 11 (1) "farm use" means the use of land for the production of crops, 12 fruits, or other agricultural products for human consumption or for the 13 sustenance or grazing of livestock if the land produces at least $1,000 of 14 agricultural products during the tax year and those products are offered for sale, 15 or the land would normally produce at least $1,000 of agricultural products 16 offered for sale during the tax year, and the owner or lessee of the land has filed 17 an Internal Revenue Service Schedule F (Form 1040) with the United States 18 Internal Revenue Service; 19 (2) "livestock" includes cattle, hogs, sheep, goats, chickens, 20 turkeys, pigeons, and other poultry raised to provide meat or other products for 21 human consumption [PROFIT FOR RAISING AND HARVESTING CROPS, FOR 22 THE FEEDING, BREEDING, AND MANAGEMENT OF LIVESTOCK, FOR 23 DAIRYING, OR ANOTHER AGRICULTURAL USE, OR ANY COMBINATION 24 OF THESE. TO BE FARM USE LAND, THE OWNER OR LESSEE MUST BE 25 ACTIVELY ENGAGED IN FARMING THE LAND, AND DERIVE AT LEAST 10 26 PERCENT OF YEARLY GROSS INCOME FROM THE LAND]. 27 * Sec. 5. AS 29.45.060(c) is repealed. 28 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).