Legislature(2023 - 2024)BARNES 124
04/18/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB161 | |
| HB134 | |
| HB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 161 | TELECONFERENCED | |
| += | HB 134 | TELECONFERENCED | |
| += | HB 30 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 161-TAX EXEMPTION FOR FARM LAND/STRUCTURES
8:06:21 AM
CHAIR MCCORMICK announced that the first order of business would
be CS FOR SENATE BILL NO. 161(CRA) am, "An Act relating to
municipal taxation of farmland and farm structures; and
providing for an effective date."
8:06:42 AM
SENATOR JESSE BJORKMAN, Alaska State Legislature, as prime
sponsor, presented CSSB 161(CRA) AM. He said that the proposed
legislation extends the property tax exemption for farm use
land/buildings and encourages farm use buildings to be assessed
at the farm rate. He said this exemption would keep that land
from being developed or converted to other commercial uses. He
said CSSB 161 (CRA) AM would change the standard for
qualifications for someone seeking to utilize the proposed tax
exemption by lowering the threshold of dollars sold needed to
qualify for a tax exemption.
CHAIR MCCORMICK moved to adopt the proposed House committee
substitute (HCS) for CSSB 161(CRA) AM, Version 33-LS0971\D,
Dunmire, 4/1/24, as the working document. There being no
objection, Version D was before the committee.
8:10:29 AM
REPRESENTATIVE MEARS moved to adopt Amendment 1 to Version D,
labeled 33-LS0971\D.4, Dunmire, 4/15/24, which read:
Page 3, following line 1:
Insert a new bill section to read:
"* Sec. 4. AS 29.45.060(b) is amended to read:
(b) An owner of farm use land shall, to secure
the assessment under this section, apply to the
assessor on or before May 15 of each year in which the
assessment is desired. The application shall be made
on [UPON] forms prescribed by the state assessor for
the use of the local assessor, and must include
information that may reasonably be required to
determine the entitlement of the applicant. If the
land is leased for farm use purposes, the applicant
shall furnish to the assessor a copy of tease bearing
the signatures of both lessee and lessor along with
the completed application. The applicant shall furnish
the assessor a copy of the lease covering the period
for which the exemption is requested. This subsection
does not apply to a person with an interest in land
that is classified by the state for agricultural use
or that is restricted by the state for agricultural
purposes."
Renumber the following bill sections accordingly.
CHAIR MCCORMICK objected.
8:10:35 AM
REPRESENTATIVE MEARS explained Amendment 1, saying it would
allow applicants to apply to the assessor on or before May 15,
rather than only being allowed to be submitted on May 15.
8:11:07 AM
SENATOR BJORKMAN said he is neutral towards Amendment 1.
CHAIR MCCORMICK removed his objection. There being no further
objection, Amendment 1 was adopted.
8:11:26 AM
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 2 to Version
D, labeled 33-LS0971\D.8, Dunmire, 4/17/24, which read:
Page 1, line 7:
Delete "[EXCLUSIVELY]"
Insert "exclusively"
Page 1, line 11:
Delete "$1,000"
Insert "$2,500"
Delete "on"
Insert "from"
Page 1, lines 12 - 13:
Delete ", or normally sell at least $1,000 of
agricultural products produced on the land during a
tax year,"
Page 2, following line 19:
Insert a new bill section to read:
"* Sec. 3. AS 29.45.050 is amended by adding a new
subsection to read:
(z) In the event that an owner or lessee of farm
use land does not sell $2,500 of agricultural products
produced from the land during a tax year because of
circumstances beyond the control of the owner or
lessee, the owner may secure the exemption under (t)
of this section if the farm use land qualified for the
exemption under (t) of this section for the three
preceding tax years. In this subsection,
"circumstances beyond the control of the owner or
lessee" includes crop failure or physical injury that
prevents the owner or lessee from conducting farming
activity."
Renumber the following bill sections accordingly.
Page 3, following line 1:
Insert a new bill section to read:
"* Sec. 5. AS 29.45.060(c) is amended to read:
(c) In the event that an owner or lessee of farm
use land does not sell $2,500 of agricultural products
produced from the land during a tax year because of
circumstances beyond the control of the owner or
lessee, the owner may secure the assessment under this
section if the farm use land qualified for the
assessment under this section for the three preceding
tax years. In this subsection, "circumstances beyond
the control of the owner or lessee" includes [OF A]
crop failure or physical injury that prevents the
owner or lessee from conducting farming activity [BY
AN ACT OF GOD THE PREVIOUS YEAR, THE OWNER OR LESSEE
MAY SUBMIT AN AFFIDAVIT AFFIRMING THAT 10 PERCENT OF
GROSS INCOME FOR THE PAST THREE YEARS WAS FROM
FARMING]."
Renumber the following bill sections accordingly.
Page 3, line 20:
Delete "$1,000"
Insert "$2,500"
Page 3, line 21:
Delete "on"
Insert "from"
Page 3, lines 21 - 22:
Delete ", or normally sells at least $1,000 of
agricultural products produced on the land during a
tax year,"
Page 3, line 23:
Delete "the owner or lessee of the land"
Page 4, line 2:
Delete all material.
Renumber the following bill section accordingly.
CHAIR MCCORMICK objected for the purpose of discussion.
8:11:31 AM
REPRESENTATIVE RUFFRIDGE explained Amendment 2, saying it would
allow a municipality to partially or wholly exempt land or
structures that are exclusively used for farming activity and
raise the amount dollars sold to qualify for the exemption from
$1,000 to $2,500. He said if the ordinance were adopted by a
municipality, there would be a slight shift in the amount of tax
exemption that potentially would be passed on to other property
owners. He added that the exemption on page 2, line 19 of the
amendment is meant to qualify an option to have the exemption if
there were an event that would cause the person who qualified
for the exemption not to be able to farm or sell.
8:13:48 AM
REPRESENTATIVE RUFFRIDGE asked for the sponsor's position on
Amendment 2.
8:13:57 AM
SENATOR BJORKMAN said he supports Amendment 2 because it takes
into account public testimony that was heard in a previous bill
hearing to clarify vague language surrounding sales and added
that the raised dollar amount from $1,000 to $2,500 helps to
ease concerns from municipalities that people might abuse the
exemption. He said the amendment would return an optional
portion in the exclusive use provision of the proposed
legislation, making it easier for assessors to have control over
how tax exemptions are distributed.
CHAIR MCCORMICK removed his objection. There being no further
objection, Amendment 2 was adopted.
8:15:47 AM
REPRESENTATIVE RUFFRIDGE said he would not be offering Amendment
3.
8:16:09 AM
The committee took an at-ease from 8:16 a.m. to 8:17 a.m.
8:17:32 AM
REPRESENTATIVE MEARS thanked the bill sponsor for bringing the
issue forward. She said she is apprehensive about the
legislature making decisions on behalf of municipalities but
recognizes the larger goal at hand with the proposed
legislation.
8:18:15 AM
REPRESENTATIVE MCCABE moved to report HCS CSSB 161, Version 33-
LS0971\D, Dunmire, 4/1/24, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
REPRESENTATIVE MCCABE objected.
8:18:36 AM
A roll call vote was taken. Representatives Mears, McKay, Baker,
Ruffridge, and McCormic voted in favor of reporting HCS CSSB
161, as amended, from committee. Representatives McCabe and
Himschoot voted against it. Therefore, HCS CSSB 161(CRA), was
reported out of the House Community and Regional Affairs
Standing Committee by a vote of 5-2.