2024-04-26                     House Journal                      Page 2457
HB 399                                                                                                                        
HOUSE BILL NO. 399 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         

2024-04-26                     House Journal                      Page 2458
    "An Act relating to tax exemptions for agriculture and timber                                                               
    business; and providing for an effective date."                                                                             
                                                                                                                                
was read the first time and referred to the Community & Regional                                                                
Affairs and Finance Committees.                                                                                                 
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Indeterminate, Dept. of Revenue                                                                                             
                                                                                                                                
The Governor's transmittal letter dated April 25 follows:                                                                       
                                                                                                                                
"Dear Speaker Tilton:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill designed to reduce the burden of                                                         
income, property, and sales tax on the agriculture and timber industries                                                        
in the State. Under the terms of the bill, certain agriculture and timber                                                       
businesses would be exempt from state and local income, property,                                                               
and sales taxes for a period of 10 years.                                                                                       
                                                                                                                                
Alaska has a vested interest in ensuring a robust agricultural and                                                              
timber economy. To support that economy, this bill would exempt                                                                 
agriculture and timber businesses that produce at least $25,000 per                                                             
year in agriculture or timber products from local property tax                                                                  
assessments, city and borough sales taxes, and state corporate income                                                           
tax for 10 years. The implementation of this tax exemption will                                                                 
promote the growth of new and existing businesses in the State.                                                                 
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"