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