HB323 • 2026

FARM & AGRICULTURAL LAND ASSESSMENTS

An Act relating to municipal assessments of farm or agricultural land; and providing for an effective date.

Agriculture Land Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: REPRESENTATIVE MOORE
Last action: 2026-02-23
Official status: (H) CRA
Effective date: Not listed

Plain English Breakdown

The official status label indicates 'Passed Legislature' but the last action listed is 'Referred,' suggesting this text may be from an early stage or the metadata provided contains conflicting information about final passage.

Changes to Farm Land Tax Assessment Rules

This bill updates the rules for how landowners apply for special tax assessments on farm and agricultural land in Alaska.

What This Bill Does

Requires owners of farm use land to submit an application by May 15 each year to get a special assessment.
Allows property owners with no history of farm income to sign a statement declaring their intent to file IRS Schedule F instead of providing the form immediately, but requires them to file the actual form by April 15 of the following year.
Updates the definition of 'farm use' so it does not include land used for growing marijuana.
Requires S corporations applying for farm assessments to provide information required on a Schedule F (Form 1040) instead of signing an intent statement, with filing due by April 15 of the following year if they have no income history.
States that failing to file required documents or forms by the specified deadlines causes an applicant to lose their tax exemption.

Who It Names or Affects

Owners of land classified as farm or agricultural use in Alaska
Local assessors who review applications for special land assessments
S corporations that own or lease farmland

Terms To Know

Farm Use Land Assessment: A lower property tax rate given to land used specifically for growing crops, flowers, fruits, or raising livestock.
Schedule F (Form 1040): An Internal Revenue Service form that farmers use to report their income and expenses from farming activities.
S Corporation: A sole proprietorship, partnership, or entity that has elected to file federal returns under specific rules in the U.S. tax code (26 U.S.C. 1361-1379).

Limits and Unknowns

The bill does not apply to land already classified by the state for agricultural use or restricted by the state for agricultural purposes.
The text does not specify how much money this change will save or cost taxpayers.

Bill History

2026-02-23 1682
(H) REFERRED TO COMMUNITY & REGIONAL AFFAIRS
2026-02-23 1682
(H) CRA, FIN
2026-02-23 1682
(H) READ THE FIRST TIME - REFERRALS

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

HB0323a -1- HB 323
New Text Underlined [DELETED TEXT BRACKETED]

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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