CSSB 200(RES): "An Act relating to municipal assessments of farm or agricultural land; and providing for an effective date."
00 CS FOR SENATE BILL NO. 200(RES) 01 "An Act relating to municipal assessments of farm or agricultural land; and providing 02 for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.45.060(a) is amended to read: 05 (a) Except as provided in (h) of this section, farm [FARM] use land, and 06 structures on farm use land that are used for farm operations, included in a farm unit 07 and not dedicated or being used for nonfarm purposes shall be assessed on the basis of 08 full and true value for farm use and may not be assessed as if subdivided or used for 09 some other nonfarm purpose. The assessor shall maintain records valuing the land for 10 both full and true value and farm use value. If the land is sold, leased, or otherwise 11 disposed of for uses incompatible with farm use or converted to a use incompatible 12 with farm use by the owner, the owner is liable to pay an amount equal to the 13 additional tax at the current mill levy together with eight percent interest for the 14 preceding seven years, as though the land had not been assessed for farm use
01 purposes. Payment by the owner shall be made to the state to the extent of its 02 reimbursement for revenue loss under (d) of this section for the preceding seven years. 03 The balance of the payment shall be made to the municipality. 04 * Sec. 2. AS 29.45.060(b) is amended to read: 05 (b) An owner of farm use land shall, to secure the assessment under this 06 section, apply to the assessor on or before May 15 of each year in which the 07 assessment is desired. The application shall be made on forms prescribed by the state 08 assessor for the use of the local assessor, and must include information required on a 09 Schedule F (Form 1040) and other information that may reasonably be required to 10 determine the entitlement of the applicant. If the applicant is required by the 11 Internal Revenue Service to file an Internal Revenue Service Schedule F (Form 12 1040), the applicant shall provide the local assessor with a copy of the applicant's 13 Schedule F (Form 1040). If the applicant is an S corporation, the applicant shall 14 provide the local assessor with the same information required on a Schedule F 15 (Form 1040). If the land is leased for farm use purposes, the applicant shall furnish to 16 the assessor a copy of the lease bearing the signatures of both lessee and lessor along 17 with the completed application. The applicant shall furnish the assessor a copy of the 18 lease covering the period for which the exemption is requested. This subsection does 19 not apply to a person with an interest in land that is classified by the state for 20 agricultural use or that is restricted by the state for agricultural purposes. 21 * Sec. 3. AS 29.45.060(e) is amended to read: 22 (e) Notwithstanding (h) of this section, all [ALL] land that is classified by 23 the state for agricultural use or that is restricted by the state for agricultural purposes 24 shall be assessed on the basis of full and true value based on [UPON] that restricted 25 use. 26 * Sec. 4. AS 29.45.060(f) is amended to read: 27 (f) [THIS SECTION DOES NOT APPLY TO LAND FOR WHICH THE 28 OWNER HAS GRANTED, AND HAS OUTSTANDING, A LEASE OR OPTION 29 TO BUY THE SURFACE RIGHTS.] A property owner wishing to file for farm use 30 classification having no history of farm-related income may submit a declaration of 31 intent at the time of filing the application with the assessor setting out the intended use
01 of the land and certifying that the property owner intends to file an Internal Revenue 02 Service Schedule F (Form 1040) with the United States Internal Revenue Service for 03 the current tax year. An applicant using this procedure shall file with the assessor on 04 or before April 15 of the following year a copy of the Schedule F (Form 1040) the 05 applicant files with the Internal Revenue Service. If the applicant is an S 06 corporation, the applicant does not need to certify that it intends to file a 07 Schedule F (Form 1040) with the United States Internal Revenue Service for the 08 current tax year, but the applicant shall file with the assessor on or before 09 April 15 of the following year the same information required on a Schedule F 10 (Form 1040). Failure to make a filing required in this subsection forfeits the 11 exemption. 12 * Sec. 5. AS 29.45.060(g) is amended to read: 13 (g) In this section, 14 (1) "farm use" means 15 (A) the use of land for the production of crops, fruits, flowers, 16 livestock, or other agricultural products [FOR HUMAN OR ANIMAL 17 CONSUMPTION OR FOR THE SUSTENANCE OR GRAZING OF 18 LIVESTOCK] if the owner or lessee sells at least $2,500 of agricultural 19 products produced from the land during the tax year [AND FILES AN 20 INTERNAL REVENUE SERVICE SCHEDULE F (FORM 1040) WITH THE 21 UNITED STATES INTERNAL REVENUE SERVICE]; 22 (B) the use of land adjoining land described in (A) of this 23 paragraph as part of an approved soil conservation plan to support 24 agricultural production on the land described in (A) of this paragraph; 25 (C) does not include the use of land for the production of 26 marijuana; 27 (2) "livestock" includes cattle, hogs, sheep, goats, horses, chickens, 28 turkeys, pigeons, and other poultry; 29 (3) "S corporation" means a sole proprietorship, partnership, or 30 entity that has elected to file federal returns under 26 U.S.C. 1361 - 1379 31 (Internal Revenue Code) [RAISED TO PROVIDE MEAT OR OTHER PRODUCTS
01 FOR HUMAN CONSUMPTION]. 02 * Sec. 6. AS 29.45.060 is amended by adding new subsections to read: 03 (h) This section does not apply to land 04 (1) for which the owner has granted, and has outstanding, a lease or 05 option to buy the surface rights; 06 (2) in a home rule municipality with a population of more than 07 200,000 unless the municipality has by ordinance adopted the assessment under this 08 section. 09 (i) A home rule municipality with a population of more than 200,000 may by 10 ordinance 11 (1) adopt a definition of "farm use" that differs from the meaning given 12 in (g) of this section; 13 (2) adjust the value of agricultural products that must be produced 14 from the land during a tax year under (c) of this section. 15 * Sec. 7. This Act takes effect February 1, 2027.