Senate committee hears bill to expand farm‑use tax assessments to S‑corps and non‑food agriculture
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Summary
Senate Bill 200, presented Feb. 10, 2026, would allow farms operating as S corporations to submit equivalent income documentation to qualify for farm‑use property tax assessment and would expand eligibility to non‑food agricultural operations that support the farm economy. Farmers and farmland advocates testified in support.
Senate Bill 200 was presented to the Senate Community and Regional Affairs Committee on Feb. 10, 2026. Sponsor Senator Jesse Bjorkman said the bill aims to correct an unintended exclusion in 2024 statute changes that used IRS Schedule F to verify farm income; because S corporations do not file Schedule F, many S‑corp farms were effectively barred from farm‑use assessments. SB200 would allow S corporations to submit equivalent documentation to local assessors and would broaden eligibility to non‑food agricultural operations that support food producers, such as hay or peony farms.
Multiple witnesses testified in favor. Rita Joe Schultz, owner of Alaska Perfect Peony, said the change would offer financial relief to horticulture farmers and support agritourism opportunities. "This bill will offer financial relief to our horticulture farmers," Schultz said, describing agritourism and farm‑tour potential.
Amy Seitz, policy director for the Alaska Farm Bureau, urged support and described the economic pressures facing Alaska farms, citing the USDA 2022 Census of Agriculture and a 33% increase in production costs from the prior census year. Seitz said Alaska has about 1,200 farms recorded in the census and argued property tax reductions are an important tool to keep farms in production.
Margaret Adzett, lands coordinator for the Alaska Farmland Trust, emphasized land‑protection concerns: the trust has protected just under 600 acres using conservation easements, and a referenced study found an 11% reduction (about 3,000 acres) of agricultural land in the Matanuska‑Susitna Borough from 2013 to 2023. Adzett said ag tax deferments and expanded eligibility are among the mechanisms to keep land in farming.
No public testimony was recorded either in the room or online. The committee set SB200 aside for further consideration at the conclusion of the hearing.
Why it matters: Supporters said the change would preserve agricultural land, help smaller and non‑food producers remain viable, and promote agritourism and secondary value‑added businesses that rely on local producers.
Next steps: The committee set the bill aside; additional deliberation and potential amendments could follow in future committee action.