The bill amends Minnesota Statutes 2024, specifically 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 allows these entities to qualify for homestead property classification under certain conditions, such as having a shareholder, member, or partner actively engaged in farming the land. The bill also clarifies that homestead treatment applies even if the legal title is held by the entity rather than the individual residing on the property.

Additionally, the bill includes provisions for the classification of agricultural property owned by members or partners of these entities, allowing for class 1b or class 2a assessment if the owner resides on the property and is engaged in farming. It also stipulates that nonhomestead agricultural property located within four townships or cities of a homestead may 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