This bill amends Minnesota Statutes 2024, section 273.124, subdivision 8, to increase the allowable number of shareholders, members, or partners in family farm corporations, joint family farm ventures, limited liability companies, or partnerships from 12 to 18. This change aims to enhance the classification of agricultural homestead properties owned by these entities, allowing them to qualify for class 1b or class 2a property assessments when occupied by individuals actively engaged in farming. The bill also clarifies the definitions of "family farm corporation," "joint family farm venture," and "partnership operating a family farm," ensuring that the increased shareholder limit is consistently applied across these definitions.

Additionally, the bill stipulates that agricultural properties owned by members, partners, or shareholders of these entities and leased to them can also be classified as class 1b or class 2a, provided the owner resides on the property and is engaged in farming. It further allows nonhomestead agricultural properties located within four townships or cities of a shareholder's homestead to receive a first-tier homestead classification rate under certain conditions. The effective date for these changes is set for homestead applications in 2025 and thereafter.

Statutes affected:
Introduction: 273.124