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 that can qualify for homestead property classification from 12 to 18. The bill maintains the eligibility criteria for these entities to receive class 1b or class 2a property assessment for homesteads occupied by shareholders, members, or partners who are actively engaged in farming. It also clarifies that agricultural property owned by these entities and leased to individuals who are actively farming is eligible for the same classifications, provided the owner resides on the property.

Additionally, the bill introduces a provision for nonhomestead agricultural property owned by these entities, allowing it to receive the first tier homestead classification rate if it is located within four townships or cities from the agricultural land used as a homestead by a qualifying individual. The bill specifies that the owner must notify the county assessor by July 1 for the property to be considered for this classification in the following tax year. The new legal language also includes an effective date stating that these changes will apply to homestead applications starting in 2025.

Statutes affected:
Introduction: 273.124