Proposition 2 is on the ballot for upcoming elections on Oct 3, 2023. It provides for total tax exemption for farm buildings in the borough. However, the caveat is that these farmers and growers have to derive at least 10% of their income from their farm activities. Farm building must be used only for growing, storing, harvesting crops for consumption. It does include livestock and dairy, but no Marijuana or flowers.
So, there is a bit of contention as the ordinance is written, it will make some happy and some not.
Food Security is a critical issue in our borough. We need to support those who are feeding us. We need better food security in the Interior, and this tax exemption will help food farmers stay afloat, encourage creation of new farms, and provide means to adding resources to growing efforts.
General Information on Prop 2
Proposition 2 will provide a total tax exemption for farm buildings in the Fairbanks North Star Borough. It can only be accessed by farmers, which means folks who derive at least 10% of their annual gross income from farm activities. And it only applies to “farm buildings,” which means buildings used exclusively for growing, storing, and harvesting crops for consumption. This includes livestock feed and dairy.
Does Not Apply to Marijuana
The farm building tax exemption would not apply to marijuana growing, because the Assembly specifically excluded it when it voted to put Prop 2 on the ballot.
The only way the Borough would have got this exemption on the ballot was by copying the exact language from the state law. It is a state law that allows any municipality to pass this sort of tax exemption, and the state law requires that the buildings be used only for food, because it’s about food security.
Prop 2 Supporters
Prop 2 is supported by the Maria Papp, Christine and Brad St. Pierre, Sam Knapp, and Susan/Christie/Tom at Calypso. These are some of the most important food farmers in our community.
Its co-sponsors on the Assembly are from all sides of the aisle: Tammie Wilson, Savannah Fletcher, Kristan Kelly, and Jimi Cash. It’s also sponsored by the Brewers Guild of Alaska, who support more food farming in the Interior to help them source local ingredients.