MUNI: SVC AREAS; FARM & AGRICULTURAL LAND, the official text

Enrolled SB 200 
 Relating to service areas; relating to municipal assessments of farm or agricultural land; and 
 providing for an effective date. 
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 * Section 1. AS 29.35.450(c) is amended to read: 
 (c) If voters reside within a service area that provides road, fire protection, or 
 parks and recreation services, abolishment of the service area is subject to approval by 
 the majority of the voters residing in the service area who vote on the question. A 
 service area that provides road, fire protection, or parks and recreation services in 
 which voters reside may not be abolished and replaced by a larger service area unless 
 that proposal is approved, separately, by a majority of the voters who vote on the 
 question residing in the existing service area and by a majority of the voters who vote 
 on the question residing in the area proposed to be included within the new service 
 area but outside of the existing service area. A service area that provides road, fire 
 protection, or parks and recreation services in which voters reside may not be altered

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

provide the only access to the subdivision or parcel or provide access to the 
 subdivision or parcel that is required by the subdivision plat or by other regulation or 
 ordinance; 
 (4) to a change in the boundaries of a road service area to exclude a 
 subdivision or parcel that does not rely on the use of roads maintained by the service 
 area for the subdivision's or parcel's only access or for access that is required by the 
 subdivision plat or by other regulation or ordinance; 
 (5) to a change in the boundaries of a road service area to include or 
 exclude a parcel that is located in more than one service area so that the parcel is only 
 located in one road service area; 
 (6) to a change in the boundaries of a road service area to include a 
 parcel that is partially located in the road service area if roads maintained by the 
 service area provide the only access to the parcel; 
 (7) in a second class borough to abolishment, replacement, or 
 alteration of a service area created on or after July 1, 2026, or combination of two 
 or more service areas created on or after July 1, 2026. 
 * Sec. 2. 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 forms prescribed by the state 
 assessor for the use of the local assessor, and must include information required on a 
 Schedule F (Form 1040) and other information that may reasonably be required to 
 determine the entitlement of the applicant. If the applicant is required by the 
 Internal Revenue Service to file an Internal Revenue Service Schedule F (Form 
 1040), the applicant shall provide the local assessor with a copy of the applicant's 
 Schedule F (Form 1040). If the applicant is an S corporation, the applicant shall 
 provide the local assessor with the same information required on a Schedule F 
 (Form 1040). If the land is leased for farm use purposes, the applicant shall furnish to 
 the assessor a copy of the lease 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. 
 * Sec. 3. AS 29.45.060(f) is amended to read: 
 (f) This section does not apply to land for which the owner has granted, and 
 has outstanding, a lease or option to buy the surface rights. A property owner wishing 
 to file for farm use classification having no history of farm-related income may submit 
 a declaration of intent at the time of filing the application with the assessor setting out 
 the intended use of the land and certifying that the property owner intends to file an 
 Internal Revenue Service Schedule F (Form 1040) with the United States Internal 
 Revenue Service for the current tax year. An applicant using this procedure shall file 
 with the assessor on or before April 15 of the following year a copy of the Schedule F 
 (Form 1040) the applicant files with the Internal Revenue Service. If the applicant is 
 an S corporation, the applicant does not need to certify that it intends to file a 
 Schedule F (Form 1040) with the United States Internal Revenue Service for the 
 current tax year, but the applicant shall file with the assessor on or before 
 April 15 of the following year the same information required on a Schedule F 
 (Form 1040). Failure to make a filing required in this subsection forfeits the 
 exemption. 
 * Sec. 4. AS 29.45.060(g) is amended to read: 
 (g) In this section, 
 (1) "farm use" means 
 (A) the use of land for the production of crops, fruits, flowers, 
 livestock, or other agricultural products [FOR HUMAN OR ANIMAL 
 CONSUMPTION OR FOR THE SUSTENANCE OR GRAZING OF 
 LIVESTOCK] if the owner or lessee sells at least $2,500 of agricultural 
 products produced from the land during the tax year; 
 (B) the use of land adjoining land described in (A) of this 
 paragraph as part of an approved soil conservation plan to support 
 agricultural production on the land described in (A) of this paragraph; 
 (C) does not include the use of land for the production of 
 marijuana [AND FILES AN INTERNAL REVENUE SERVICE

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