AK SB265

Establishes the Tax Relief for Agriculture Industry and Lumber (TRAIL) Act to exempt real and personal property used for agriculture business or timber business from general taxation under AS 29.45.030(a)(11).

Defines "agriculture business" as production of aquatic plants, ornamental plants, crops, fruits, or livestock on land producing at least $25,000 of agricultural products annually or for which owner/lessee filed IRS Schedule F; excludes cannabis cultivation under AS 17.38.

Defines "timber business" as production of products from forestry or timber management on land producing at least $25,000 of timber products annually or for which owner/lessee filed IRS Form T; department shall adopt regulations to further define agricultural and timber products.

Prohibits boroughs and cities from levying or collecting sales or use taxes on agriculture business or timber business activities.

Exemptions require annual application to local assessor by May 15; property owners leasing land must provide signed lease copies; all provisions expire January 1, 2035; act takes effect January 1, 2025.