Office of the State Assessor

Farm Use Assessment Applications

In Alaska, to qualify for AS 29.45.060, farm land and farm structures must be used exclusively for farming activity, or purposes directly related to farm activity. The farm land or structure must be owned or leased by a person who is actively engaged in farming, and owner or lessee must sell at least $2,500 of agricultural products produced from the land during the tax year and file a IRS Schedule F(Form 1040).

Farm Use Assessment Applications will no longer be sent to the State Assessor's Office for income verification. Please have applicants submit applications directly to your assessment department.

What is an agricultural assessment?

An agricultural assessment allows land utilized for agricultural purposes to be assessed based on its agricultural value as opposed to its commercial value. An agricultural assessment applies to school, country and town property taxes and is based on the soil types on the farm.

What is the definition of "Farm use".

It means the use of land for production of crops, fruits, or other agricultural products for human or animal consumption or for the sustenance or grazing of livestock.

What is included in "Livestock"

Livestock includes cattle, hogs, sheep, goats, chickens, turkeys, pigeons, and other poultry raised to provide meat or other products for human consumption.

How many acres do you need to be considered a farm for taxes?

Generally speaking, there is no minimum acreage for farm tax exemption. There may, however, be specific acreage minimums required to be considered for certain land classifications such as a “greenbelt” property.

Contact

For questions concerning Farm Use Assessment Contact your local Assessing Department

For other questions contact

Dan Nelson, State Assessor
Division of Community & Regional Affairs
Alaska Department of Commerce, Community, and Economic Development
550 West 7th Avenue, Suite 1650
Anchorage, AK 99501
Phone: (907) 269-4565
FAX: (907) 269-4539
e-mail: dan.nelson@alaska.gov

Farm Use Assessment Statute

To qualify for AS 29.45.060 farm land and farm structures must be used exclusively for farming activity, or purposes directly related to farm activity. The farm land or structure must be owned or leased by a person who is actively engaged in farming, and owner or lessee must sell at least $2,500 of agricultural products produced from the land during the tax year and file a IRS Schedule F(Form 1040).

AS 29.45.060 Farm or agricultural land

(a) Farm use land, and structures on farm use land that are used for farm operations, included in a farm unit and not dedicated or being used for nonfarm purposes shall be assessed on the basis of full and true value for farm use and may not be assessed as if subdivided or used for some other nonfarm purpose. The assessor shall maintain records valuing the land for both full and true value and farm use value. If the land is sold, leased, or otherwise disposed of for uses incompatible with farm use or converted to a use incompatible with farm use by the owner, the owner is liable to pay an amount equal to the additional tax at the current mill levy together with eight percent interest for the preceding seven years, as though the land had not been assessed for farm use purposes. Payment by the owner shall be made to the state to the extent of its reimbursement for revenue loss under (d) of this section for the preceding seven years. The balance of the payment shall be made to the municipality.

(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 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 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.

(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 crop failure or physical injury that prevents the owner or lessee from conducting farming activity.

(d) Subject to legislative appropriations for the purpose, the state shall reimburse a borough or city, as appropriate, for the property tax revenues lost to it by the operation of this section.

(e) All land that is classified by the state for agricultural use or that is restricted by the state for agricultural purposes shall be assessed on the basis of full and true value based upon that restricted use.

(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. Failure to make a filing required in this subsection forfeits the exemption.

(g) In this section,

(1) "farm use" means the use of land for the production of crops, fruits, 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 and files an Internal Revenue Service Schedule F (Form 1040) with the United States Internal Revenue Service;

(2) "livestock" includes cattle, hogs, sheep, goats, chickens, turkeys, pigeons, and other poultry raised to provide meat or other products for human consumption.

Revised 03/24/2025