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 owned by these entities, allowing for more individuals to be involved while still qualifying for homestead treatment. The bill specifies that homestead treatment applies even if the legal title is held by the entity rather than the individual residing on the property, provided certain conditions are met regarding the engagement in farming and the relationship of the shareholders to qualifying relatives.

Additionally, the bill outlines the eligibility criteria for agricultural property owned by members or partners of these entities, ensuring that properties leased to family farm corporations or similar entities can still qualify for class 1b or class 2a property classification if the owner is actively farming the land. It also introduces a provision for nonhomestead agricultural property located near a shareholder's homestead to receive a first-tier homestead classification rate under specific conditions. The effective date for these changes is set for homestead applications in 2025 and thereafter.

Statutes affected:
Introduction: 273.124