HB323 FARM & AGRICULTURAL LAND ASSESSMENTS | Alaska Bill

Plain English Breakdown

The candidate explanation included details about S corporations that were not directly supported by the provided official source material. The text also did not specify how the act would affect land classified by the state for agricultural use or restricted for agricultural purposes.

Farm and Agricultural Land Assessments

This act changes the deadline for applying for farm use land assessment from May 15 to April 15 of each year, requires applicants to provide information similar to what is needed on a Schedule F (Form 1040) tax form, allows property owners without previous farm-related income to declare their intent to use the land for farming purposes and file necessary documentation later, and defines 'farm use' as using land for crop or livestock production if at least $2,500 of agricultural products are sold annually.

What This Bill Does

Changes the deadline for applying for farm use land assessment from May 15 to April 15 of each year.
Requires applicants to provide information similar to what is needed on a Schedule F (Form 1040) tax form, including leases and financial documents.
Allows property owners without previous farm-related income to declare their intent to use the land for farming purposes and file necessary documentation later.
Defines 'farm use' as using land for crop or livestock production if at least $2,500 of agricultural products are sold annually.

Who It Names or Affects

Farmers and owners of agricultural lands in municipalities.
Local assessors responsible for evaluating farm use land applications.

Terms To Know

Schedule F (Form 1040): A tax form used to report income from farming or fishing activities.

Limits and Unknowns

The bill does not specify what happens if an applicant fails to file required documents on time.
It is unclear how this act will affect land classified by the state for agricultural use or restricted for agricultural purposes.

Official Summary Text

FARM & AGRICULTURAL LAND ASSESSMENTS
An Act relating to municipal assessments of farm or agricultural land; and providing for an effective date.

Current Bill Text

Read the full stored bill text

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HOUSE BILL NO. 323

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY REPRESENTATIVE MOORE

Introduced: 2/23/26
Referred: Community and Regional Affairs, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to municipal assessments of farm or agricultural land; and providing 1
for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 29.45.060(b) is amended to read: 4
(b) An owner of farm use land shall, to secure the assessment under this 5
section, apply to the assessor on or before May 15 of each year in which the 6
assessment is desired. The application shall be made on forms prescribed by the state 7
assessor for the use of the local assessor, and must include information required on a 8
Schedule F (Form 1040) and other information that may reasonably be required to 9
determine the entitlement of the applicant. If the applicant is required by the 10
Internal Revenue Service to file an Internal Revenue Service Schedule F (Form 11
1040), the applicant shall provide the local assessor with a copy of the applicant's 12
Schedule F (Form 1040). If the applicant is an S corporation, the applicant shall 13
provide the local assessor with the same information required on a Schedule F 14
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(Form 1040). If the land is leased for farm use purposes, the applicant shall furnish to 1
the assessor a copy of the lease bearing the signatures of both lessee and lessor along 2
with the completed application. The applicant shall furnish the assessor a copy of the 3
lease covering the period for which the exemption is requested. This subsection does 4
not apply to a person with an interest in land that is classified by the state for 5
agricultural use or that is restricted by the state for agricultural purposes. 6
* Sec. 2. AS 29.45.060(f) is amended to read: 7
(f) This section does not apply to land for which the owner has granted, and 8
has outstanding, a lease or option to buy the surface rights. A property owner wishing 9
to file for farm use classification having no history of farm-related income may submit 10
a declaration of intent at the time of filing the application with the assessor setting out 11
the intended use of the land and certifying that the property owner intends to file an 12
Internal Revenue Service Schedule F (Form 1040) with the United States Internal 13
Revenue Service for the current tax year. An applicant using this procedure shall file 14
with the assessor on or before April 15 of the following year a copy of the Schedule F 15
(Form 1040) the applicant files with the Internal Revenue Service. If the applicant is 16
an S corporation, the applicant does not need to certify that it intends to file a 17
Schedule F (Form 1040) with the United States Internal Revenue Service for the 18
current tax year, but the applicant shall file with the assessor on or before 19
April 15 of the following year the same information required on a Schedule F 20
(Form 1040). Failure to make a filing required in this subsection forfeits the 21
exemption. 22
* Sec. 3. AS 29.45.060(g) is amended to read: 23
(g) In this section, 24
(1) "farm use" means the use of land for the production of crops, fruits, 25
flowers, livestock, or other agricultural products [FOR HUMAN OR ANIMAL 26
CONSUMPTION OR FOR THE SUSTENANCE OR GRAZING OF LIVESTOCK] 27
if the owner or lessee sells at least $2,500 of agricultural products produced from the 28
land during the tax year [AND FILES AN INTERNAL REVENUE SERVICE 29
SCHEDULE F (FORM 1040) WITH THE UNITED STATES INTERNAL 30
REVENUE SERVICE]; "farm use" does not include the use of land for the 31
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production of marijuana; 1
(2) "livestock" includes cattle, hogs, sheep, goats, horses, chickens, 2
turkeys, pigeons, and other poultry; 3
(3) "S corporation" means a sole proprietorship, partnership, or 4
entity that has elected to file federal returns under 26 U.S.C. 1361 - 1379 5
(Internal Revenue Code) [RAISED TO PROVIDE MEAT OR OTHER PRODUCTS 6
FOR HUMAN CONSUMPTION]. 7
* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 8