MUNI: SVC AREAS; FARM & AGRICULTURAL LAND

Enrolled SB 200
LAWS OF ALASKA

2026

Source Chapter No.
HCS CSSB 200(CRA) am H _______

AN ACT

Relating to service areas; relating to municipal assessments of farm or agricultural land; and
providing for an effective date.

_______________

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

THE ACT FOLLOWS ON PAGE 1

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AN ACT

Relating to service areas; relating to municipal assessments of farm or agricultural land; and 1
providing for an effective date. 2
_______________ 3
* Section 1. AS 29.35.450(c) is amended to read: 4
(c) If voters reside within a service area that provides road, fire protection, or 5
parks and recreation services, abolishment of the service area is subject to approval by 6
the majority of the voters residing in the service area who vote on the question. A 7
service area that provides road, fire protection, or parks and recreation services in 8
which voters reside may not be abolished and replaced by a larger service area unless 9
that proposal is approved, separately, by a majority of the voters who vote on the 10
question residing in the existing service area and by a majority of the voters who vote 11
on the question residing in the area proposed to be included within the new service 12
area but outside of the existing service area. A service area that provides road, fire 13
protection, or parks and recreation services in which voters reside may not be altered 14

Enrolled SB 200 -2-
or combined with another service area unless that proposal is approved, separately, by 1
a majority of the voters who vote on the question and who reside in each of the service 2
areas or in the area outside of service areas that is affected by the proposal. This 3
subsection does not apply 4
(1) to a proposed change to a service area that provides fire protection 5
services 6
(A) that would result in increasing the number of parcels of 7
land in the service area or successor service area if the increase is not more 8
than six percent and would add not more than 1,000 residents; 9
(B) in a second class borough that would result in 10
(i) decreasing the number of parcels of land in the 11
service area or successor service area if the owner of the property to be 12
removed from the area requests removal and the removal meets criteria 13
adopted by ordinance; or 14
(ii) increasing or decreasing the number of parcels of 15
land in the service area or successor service area if the parcel is 16
transferred to a service area that provides more accessible fire 17
protection services to the transferred parcel; 18
(2) in a second class borough to abolishment of a road service area or 19
consolidation of two or more road service areas if 20
(A) taxes have not been levied in the service area for road 21
maintenance or construction during the last 12 months and there is no balance 22
in any account available to pay for these road services for the service area; 23
(B) during the last 12 months, the service area board has not 24
met with a quorum present and in accordance with law; or 25
(C) there are no road maintenance contracts in effect for the 26
service area or the existing road maintenance contracts fail to provide for 27
minimum road standards required by law that are necessary to protect the 28
borough from civil liability; 29
(3) to require approval by the voters residing in a subdivision or parcel 30
proposed to be added to a road service area if roads maintained by the service area 31

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provide the only access to the subdivision or parcel or provide access to the 1
subdivision or parcel that is required by the subdivision plat or by other regulation or 2
ordinance; 3
(4) to a change in the boundaries of a road service area to exclude a 4
subdivision or parcel that does not rely on the use of roads maintained by the service 5
area for the subdivision's or parcel's only access or for access that is required by the 6
subdivision plat or by other regulation or ordinance; 7
(5) to a change in the boundaries of a road service area to include or 8
exclude a parcel that is located in more than one service area so that the parcel is only 9
located in one road service area; 10
(6) to a change in the boundaries of a road service area to include a 11
parcel that is partially located in the road service area if roads maintained by the 12
service area provide the only access to the parcel; 13
(7) in a second class borough to abolishment, replacement, or 14
alteration of a service area created on or after July 1, 2026, or combination of two 15
or more service areas created on or after July 1, 2026. 16
* Sec. 2. AS 29.45.060(b) is amended to read: 17
(b) An owner of farm use land shall, to secure the assessment under this 18
section, apply to the assessor on or before May 15 of each year in which the 19
assessment is desired. The application shall be made on forms prescribed by the state 20
assessor for the use of the local assessor, and must include information required on a 21
Schedule F (Form 1040) and other information that may reasonably be required to 22
determine the entitlement of the applicant. If the applicant is required by the 23
Internal Revenue Service to file an Internal Revenue Service Schedule F (Form 24
1040), the applicant shall provide the local assessor with a copy of the applicant's 25
Schedule F (Form 1040). If the applicant is an S corporation, the applicant shall 26
provide the local assessor with the same information required on a Schedule F 27
(Form 1040). If the land is leased for farm use purposes, the applicant shall furnish to 28
the assessor a copy of the lease bearing the signatures of both lessee and lessor along 29
with the completed application. The applicant shall furnish the assessor a copy of the 30
lease covering the period for which the exemption is requested. This subsection does 31

Enrolled SB 200 -4-
not apply to a person with an interest in land that is classified by the state for 1
agricultural use or that is restricted by the state for agricultural purposes. 2
* Sec. 3. AS 29.45.060(f) is amended to read: 3
(f) This section does not apply to land for which the owner has granted, and 4
has outstanding, a lease or option to buy the surface rights. A property owner wishing 5
to file for farm use classification having no history of farm-related income may submit 6
a declaration of intent at the time of filing the application with the assessor setting out 7
the intended use of the land and certifying that the property owner intends to file an 8
Internal Revenue Service Schedule F (Form 1040) with the United States Internal 9
Revenue Service for the current tax year. An applicant using this procedure shall file 10
with the assessor on or before April 15 of the following year a copy of the Schedule F 11
(Form 1040) the applicant files with the Internal Revenue Service. If the applicant is 12
an S corporation, the applicant does not need to certify that it intends to file a 13
Schedule F (Form 1040) with the United States Internal Revenue Service for the 14
current tax year, but the applicant shall file with the assessor on or before 15
April 15 of the following year the same information required on a Schedule F 16
(Form 1040). Failure to make a filing required in this subsection forfeits the 17
exemption. 18
* Sec. 4. AS 29.45.060(g) is amended to read: 19
(g) In this section, 20
(1) "farm use" means 21
(A) the use of land for the production of crops, fruits, flowers, 22
livestock, or other agricultural products [FOR HUMAN OR ANIMAL 23
CONSUMPTION OR FOR THE SUSTENANCE OR GRAZING OF 24
LIVESTOCK] if the owner or lessee sells at least $2,500 of agricultural 25
products produced from the land during the tax year; 26
(B) the use of land adjoining land described in (A) of this 27
paragraph as part of an approved soil conservation plan to support 28
agricultural production on the land described in (A) of this paragraph; 29
(C) does not include the use of land for the production of 30
marijuana [AND FILES AN INTERNAL REVENUE SERVICE 31

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SCHEDULE F (FORM 1040) WITH THE UNITED STATES INTERNAL 1
REVENUE SERVICE]; 2
(2) "livestock" includes but is not limited to cattle, hogs, sheep, goats, 3
chickens, turkeys, pigeons, and other poultry; 4
(3) " S corporation" means a sole proprietorship, partnership, or 5
entity that has elected to file federal returns under 26 U.S.C. 1361 - 1379 6
(Internal Revenue Code) [RAISED TO PROVIDE MEAT OR OTHER PRODUCTS 7
FOR HUMAN CONSUMPTION]. 8
* Sec. 5. Section 1 of this Act takes effect July 1, 2026. 9
* Sec. 6. Sections 2 - 4 of this Act take effect February 1, 2027. 10