Alaska. What was homesteading? Alaska's homestead exemption applies to one's primary residence (not a vacation home or second property).Homesteading originated with President Lincoln signing the original Homestead. Act on May 20, 1862. Maximize property tax benefits tailored to your location. The Homestead Act was finally repealed in 1976, but a provision of the repeal allowed for homesteading to continue in Alaska until 1986. Complete a homestead declaration form. Sign your declaration in front of a notary. The homestead tax exemption applies to property taxes. Protection under homestead laws is typically limited to "natural persons" who reside in the applicable jurisdiction.