The 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 assessments for homesteads occupied by shareholders, members, or partners who are actively engaged in farming. The bill also clarifies the definitions of "family farm corporation," "family farm," and "joint family farm venture," while ensuring that agricultural property leased to these entities can still be classified appropriately if the owner is residing on and farming the land.

Additionally, the bill stipulates that nonhomestead agricultural property owned by these entities and located within four townships or cities of a shareholder's homestead may receive a first-tier homestead classification rate on any remaining market value exceeding the market value of the shareholder's agricultural homestead property. The effective date for these changes is set for homestead applications in 2025 and thereafter.

Statutes affected:
Introduction: 273.124