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 20. This change aims to enhance the classification of agricultural property for tax purposes, allowing these entities to qualify for class 1b or class 2a property assessments for homesteads occupied by shareholders, members, or partners who are actively engaged in farming. The bill also clarifies that agricultural property leased to these entities can be classified similarly, provided the owner resides on the property and is engaged in farming.

Additionally, the bill introduces a provision for nonhomestead agricultural property owned by these entities, allowing it to receive the first tier homestead classification rate under certain conditions. The bill specifies that the effective date for these changes will apply to homestead applications starting in 2025 and thereafter.

Statutes affected:
Introduction: 273.124