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Board of Equalization upholds assessor, denies farm-use deferral for Rosie Creek Farms
Summary
The Fairbanks North Star Borough Board of Equalization unanimously upheld the assessor and denied preferential farm-use assessment to Rosie Creek Farms, LLC, after finding required Schedule F documentation missing and that the majority crop (cannabis) is excluded under AS 29.45.060. Appellant Michael Emmerse said refiling as Schedule F would impose prohibitive costs.
The Fairbanks North Star Borough Board of Equalization unanimously voted to uphold the borough assessor's denial of a preferential farm-use assessment for Rosie Creek Farms, LLC, after the board concluded the appellant failed to submit required income documentation and the land's primary crop is not eligible under state law.
Appellant Michael Emmerse told the board he has farmed the property since the late 1990s and operates the site full time. He said he and his accountant have filed federal taxes for the business as an S corporation rather than on IRS Schedule F because, he testified, filing a Schedule F would cost the operation an estimated additional $10,000 in federal tax liability. 'This farm tax exemption means a whole lot to us,' Emmerse said, adding the exemption would save about $33,000 and help retain an employee for another month.
Ms. Rena Manning, speaking for the borough assessor, summarized legislative changes to AS 29.45.060 that took effect this year. Manning said the statute now limits preferential farm-use assessment to land producing food for human or livestock consumption, requires applicants to file IRS Schedule F (Form 1040) showing at least $2,500 in annual farm sales, and excludes non-food crops such as marijuana and cut flowers. Because Emmerse filed his farm-use application on May 14, 2025, without the 2024 Schedule F, and because the property's principal crop is cannabis, the assessor mailed a denial and recommended the board uphold the full-and-true value on the 2025 tax roll.
Several board members expressed sympathy for Emmerse's situation but said they had no legal basis to overturn the assessor. 'We're not in a position to say that the legislature shouldn't have done this,' Member Faldo said, adding the board must apply the law. Member Ferguson encouraged Emmerse to pursue legislative change and community advocacy if filing a Schedule F is not feasible. The clerk recorded a 5-0 vote to uphold the assessor's valuation for Case 179: land $144,542; improvements $280,411; total assessed value $424,953.
The board took the same approach on a second Rosie Creek Farms appeal (Case 180), where the assessor reported the application lacked the required Schedule F and recommended upholding a total valuation of $23,431; that motion also passed unanimously.
The board directed the clerk to issue written findings and conclusions and mail copies of the decision to the appellant and to the assessor. Emmerse said he may pursue additional appeals or legislative remedies.
Notes: The decision rests on the borough's application of AS 29.45.060 and the absence of the Schedule F documentation required by statute. The appellant repeatedly told the board he had filed as an S corporation since about 2016 and declined to refile for 2024 because of tax and cost concerns.
